Show HN: A smart contract and website to tax loss harvest your worthless NFTs(nftlossharvestooor.com) |
Show HN: A smart contract and website to tax loss harvest your worthless NFTs(nftlossharvestooor.com) |
From this pain-point, an idea was born!
So, we started working on a smart contract that would buy any NFT for a de minimis amount of ETH, thus allowing investors to lock in their losses and reduce their 2022 tax bill.
Would love to hear any feedback!
There's always OpenSea
The main reason I would use this instead of burning my NFTs would be the product doing the legwork to figure my tax loss for me.
I think this offers tremendous value to retail (unsophisticated users). The only value I see for sophisticated users is quickly figuring tax loss.
When you sign to authorize the contract to buy your worthless NFT, the contract will call something like safeTransfer(), but the NFT implementation of that method might actually just do something bad eg empty out your wallet.
This is a reasonably common means of crypto theft: drop an NFT into someone's wallet with malicious transfer code that actually steals their assets when they try to transfer it.