Introduction
NFTs are rife with crazy projects, scams and mind-boggling purchases of seemingly useless assets. The crypto community is often torn on whether NFTs have legitimate use cases and if the current market is a complete bubble ready to burst at any moment. Regardless, let us take a look at some of the weirdest or most expensive NFT sales:
Ex-CEO of Twitter Jack Dorsey sold Twitter’s first-ever tweet last year, with a final buying price of $2.9 million. Jack is already a billionaire and donated all the funds from the sale to Africa's response fund against covid-19. The NFT can be pictured below. The NFT was sold to Oracle CEO Sina Estavi, outbidding Justin Sun. Estavi has also brought tweets from Elon Musk.
The tweet was sold on Cents Valuables Application (A social media platform powered by their blockchain)
It started to make people ask a question, is this really art and what defines art? However the counterargument to purchases such as these is NFTs are simply not all about art, they are just what they are currently being used for. The buyer can now say he owns the first-ever tweet done on Twitter and his proof, through the blockchain, to prove it.
Have we evolved into a new level of capitalism, where billionaires’ tweets will be brought for seven figures. Who is behind the money and where is it coming from? Over the next few years, we will really see if NFTs in the way we know them are here to stay.
Another strange phenomenon of the NFT marketplace is the arrival of NBA Top Shots. They are a series of ‘best’ moments throughout the NBA which include famous moments or great individual moments from athletes, such as Lebron James’ dunk moment which recently sold for $535,000.
The moments are short clips, around 20 seconds, showing the moment in several different angles, the date of the moment and a few statistics about the player, including their jersey number.
Some have criticized these Top Shots for simply being a cash grab, but many argue that buyers are willing enough to spend thousands of their own money for ownership of these moments.
The most expensive sale to date is Derrick Rose’s layup moment, raking in an astonishing $1,000,000, a truly bizarre NFT purchase. The NFT collection, which has thousands of unique Non-fungible tokens to unpack, have recently surged over 70% in price without anyone noticing, racking in an impressive $50,000,000 in sales.
It’s unclear whether other sporting associations will follow suit, but looking at the prices garnered for some of the top moments and the total volume being traded, it seems like it won’t be long.
Digital artist which goes by the name ‘Beeple’ recently made history in March 2021 by selling the world’s most expensive NFT. His artwork ‘’The First 5000 Days’’ is 5000 pieces of digital art collaged into a singular piece. He pledged to make one piece of digital art every day, and this is the end result. You can see the artwork below:
His artwork was sold in ‘Christie’s’ auction house, and was the first piece of digital art ever sold there, and for a whopping price as well. The artwork was sold for $69 million to an individual buyer, which Beeple says he will be working with to display the artwork.
The 5,000 days artwork is part of the project ‘Everydays’ where he creates and publishes a new piece of digital artwork every day, still continuing on today.
Moving on to some more wacky NFTs which have been sold, I present to you the sale of: Farts. During the covid lockdown, Alex Ramirez-Mallis and four other friends started to send farts to each other through their WhatsApp group chat, as we all did during lockdown boredom. They eventually realized, why not sell them?
The first auction was for $85, which eventually got sold for $420. The buyer received a whopping 52 minutes of fart audio as their NFT.
Since then, they have gone on to start selling individual farts as NFTs, with some fetching more than $75 per piece.
The real genius here is that NFTs don’t have to be art, that is just what they are predominantly being used for. NFTs show how digital assets can be owned by an individual or a group, with proof of ownership verifiable through the blockchain.
Who knew that blockchain technology would be used to verify a non-fungible token of a fart.
Look labs has created a very unique, but unusual NFT for sale going under the name ‘’Cyber Eau des Parfum’’, claiming itself to be the world’s first digital fragrance.
They used near-infrared spectroscopy to digitalize the perfume. You can see the ‘digital scent’ below.
The NFT was sold for a whopping $18,000 which may seem unimaginable to most, but the concept surrounding the NFT is unseen before, which may be the reason for its value. Most believe it’s unlikely that other perfumes would be able to replicate this price point, as Look Labs harnessed first movers advantage.
It is very unclear how the NFT space will pan out in the next 5-10 years, as sales rocketed into Q4 of 2021, it shows that there is demand for digital assets and proven ownership, something which may be easier to prove virtually than physically.
However, investors should be cautious about entering a space that may have ballooned in price, ready to pop. There are many large organizations and personalities attempting to profit off the space such as Logan Paul which investors should be aware of.
Like anything in the cryptocurrency space, NFTs are extremely speculative and riskier than normal cryptocurrencies as they lack liquidity. Once you own an NFT, you must re-list it for sale to a singular buyer, not simply a buy and sell sheet. These NFTs really show the diversity of assets that investors are willing to purchase to prove they own the rights to the image, audio or smell.
Although CRA continues to slowly create guidelines for Canadians investing in cryptocurrency, they are still way behind several other developed countries when it comes to the rules surrounding taxation. Many DeFi protocols, such as yield farming and staking are yet to receive proper guidance from CRA. We should expect to see the number of guidelines rapidly increase as Canadian investors call for them but until then, crypto investors have to take positions that may or may not be accepted by CRA.
*Opinions are for discussion purposes only. This does not represent the views of MetaCounts Cashflow Inc. or its affiliates. Furthermore, this does not constitute legal, accounting, or tax advice of any kind and should not be relied upon as such.
Disclaimer: The information provided on this website is for general informational purposes only and should not be considered professional advice. While we strive to ensure accuracy, accounting and financial regulations are subject to change, and it is recommended to consult a qualified professional before making any financial decisions. The use of futurecpa.ca does not create a client relationship, and we do not endorse or guarantee the accuracy of third-party content. We value confidentiality but cannot guarantee the security of transmitted information. The content on futurecpa.ca may change without notice. By using this website, you agree to these terms and conditions. For personalized advice, please contact us by filling our contact form or reach out to us at help@futurecpa.ca.
Thank you for visiting futurecpa.ca. We hope you find our content helpful.
Introduction
NFTs are rife with crazy projects, scams and mind-boggling purchases of seemingly useless assets. The crypto community is often torn on whether NFTs have legitimate use cases and if the current market is a complete bubble ready to burst at any moment. Regardless, let us take a look at some of the weirdest or most expensive NFT sales:
Ex-CEO of Twitter Jack Dorsey sold Twitter’s first-ever tweet last year, with a final buying price of $2.9 million. Jack is already a billionaire and donated all the funds from the sale to Africa's response fund against covid-19. The NFT can be pictured below. The NFT was sold to Oracle CEO Sina Estavi, outbidding Justin Sun. Estavi has also brought tweets from Elon Musk.
The tweet was sold on Cents Valuables Application (A social media platform powered by their blockchain)
It started to make people ask a question, is this really art and what defines art? However the counterargument to purchases such as these is NFTs are simply not all about art, they are just what they are currently being used for. The buyer can now say he owns the first-ever tweet done on Twitter and his proof, through the blockchain, to prove it.
Have we evolved into a new level of capitalism, where billionaires’ tweets will be brought for seven figures. Who is behind the money and where is it coming from? Over the next few years, we will really see if NFTs in the way we know them are here to stay.
Another strange phenomenon of the NFT marketplace is the arrival of NBA Top Shots. They are a series of ‘best’ moments throughout the NBA which include famous moments or great individual moments from athletes, such as Lebron James’ dunk moment which recently sold for $535,000.
The moments are short clips, around 20 seconds, showing the moment in several different angles, the date of the moment and a few statistics about the player, including their jersey number.
Some have criticized these Top Shots for simply being a cash grab, but many argue that buyers are willing enough to spend thousands of their own money for ownership of these moments.
The most expensive sale to date is Derrick Rose’s layup moment, raking in an astonishing $1,000,000, a truly bizarre NFT purchase. The NFT collection, which has thousands of unique Non-fungible tokens to unpack, have recently surged over 70% in price without anyone noticing, racking in an impressive $50,000,000 in sales.
It’s unclear whether other sporting associations will follow suit, but looking at the prices garnered for some of the top moments and the total volume being traded, it seems like it won’t be long.
Digital artist which goes by the name ‘Beeple’ recently made history in March 2021 by selling the world’s most expensive NFT. His artwork ‘’The First 5000 Days’’ is 5000 pieces of digital art collaged into a singular piece. He pledged to make one piece of digital art every day, and this is the end result. You can see the artwork below:
His artwork was sold in ‘Christie’s’ auction house, and was the first piece of digital art ever sold there, and for a whopping price as well. The artwork was sold for $69 million to an individual buyer, which Beeple says he will be working with to display the artwork.
The 5,000 days artwork is part of the project ‘Everydays’ where he creates and publishes a new piece of digital artwork every day, still continuing on today.
Moving on to some more wacky NFTs which have been sold, I present to you the sale of: Farts. During the covid lockdown, Alex Ramirez-Mallis and four other friends started to send farts to each other through their WhatsApp group chat, as we all did during lockdown boredom. They eventually realized, why not sell them?
The first auction was for $85, which eventually got sold for $420. The buyer received a whopping 52 minutes of fart audio as their NFT.
Since then, they have gone on to start selling individual farts as NFTs, with some fetching more than $75 per piece.
The real genius here is that NFTs don’t have to be art, that is just what they are predominantly being used for. NFTs show how digital assets can be owned by an individual or a group, with proof of ownership verifiable through the blockchain.
Who knew that blockchain technology would be used to verify a non-fungible token of a fart.
Look labs has created a very unique, but unusual NFT for sale going under the name ‘’Cyber Eau des Parfum’’, claiming itself to be the world’s first digital fragrance.
They used near-infrared spectroscopy to digitalize the perfume. You can see the ‘digital scent’ below.
The NFT was sold for a whopping $18,000 which may seem unimaginable to most, but the concept surrounding the NFT is unseen before, which may be the reason for its value. Most believe it’s unlikely that other perfumes would be able to replicate this price point, as Look Labs harnessed first movers advantage.
It is very unclear how the NFT space will pan out in the next 5-10 years, as sales rocketed into Q4 of 2021, it shows that there is demand for digital assets and proven ownership, something which may be easier to prove virtually than physically.
However, investors should be cautious about entering a space that may have ballooned in price, ready to pop. There are many large organizations and personalities attempting to profit off the space such as Logan Paul which investors should be aware of.
Like anything in the cryptocurrency space, NFTs are extremely speculative and riskier than normal cryptocurrencies as they lack liquidity. Once you own an NFT, you must re-list it for sale to a singular buyer, not simply a buy and sell sheet. These NFTs really show the diversity of assets that investors are willing to purchase to prove they own the rights to the image, audio or smell.
Although CRA continues to slowly create guidelines for Canadians investing in cryptocurrency, they are still way behind several other developed countries when it comes to the rules surrounding taxation. Many DeFi protocols, such as yield farming and staking are yet to receive proper guidance from CRA. We should expect to see the number of guidelines rapidly increase as Canadian investors call for them but until then, crypto investors have to take positions that may or may not be accepted by CRA.
*Opinions are for discussion purposes only. This does not represent the views of MetaCounts Cashflow Inc. or its affiliates. Furthermore, this does not constitute legal, accounting, or tax advice of any kind and should not be relied upon as such.
.png)
