Billy Markus, the co-founder of Dogecoin, recently took to Twitter to discuss his experience with selling ETH to pay taxes and the impact on crypto prices. In late December, Markus sold a significant amount of Ethereum before the price surged by about 20%. He stated that he had to sell some Ethereum at $1,190 to cover taxes owed from selling NFTs the previous year. Unfortunately, the price of Ethereum continued to rise, reaching $1,220 shortly after he sold.
Markus explained that the state of California and the U.S. IRS charge sellers 53% of the selling price at the exact moment of the sale. This tax obligation forced him to sell some of his Ethereum holdings, which he converted into fiat to pay off the taxes on his NFT sales. Despite the irony of missing out on the price rally, Markus humorously stated that everyone was welcome for the price increase following his sale.
In February 2022, Markus tweeted about selling NFTs on the OpenSea marketplace, with each unit priced at $0.088 ETH. These NFTs were described as “pixel art NFTs of a small doge with big dreams.” He admitted that he ended up owing more in taxes than the value of his crypto sales, resulting in negative earnings from his NFT transactions. The complexities of taxes on crypto transactions highlight the challenges faced by individuals in the space.
Ethereum, the second-largest cryptocurrency, has seen a recent surge in price, following Bitcoin’s lead. Over the past 24 hours, Ethereum rose nearly 5%, with a 12% growth over the past week. Ethereum regained the $1,400 mark, signaling positive momentum for the cryptocurrency. This surge comes after the implementation of the Merge upgrade, shifting Ethereum from proof-of-work to proof-of-stake, reducing energy consumption and enhancing environmental friendliness.
Despite positive price movements, Ethereum faces criticism from Bitcoin maximalists, including Max Keiser, who label Ethereum as a “centralized scam.” Concerns about the upcoming Shanghai upgrade in February, and potential mass withdrawals from the Ethereum 2.0 deposit contract, could lead to price volatility in the future. Anonymous whales have even bet on Ethereum hitting $400 by the end of June, purchasing 26,000 ETH put options at that strike price.
The crypto market remains unpredictable and volatile, with individuals like Billy Markus navigating tax obligations and market movements. Markus’s experience highlights the challenges faced by participants in the crypto space, from tax implications to price fluctuations. As Ethereum and other cryptocurrencies continue to evolve, investors and creators must stay informed and adaptable to navigate the ever-changing landscape effectively. While the future of crypto remains uncertain, the community remains hopeful for continued growth and innovation within the space.
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