Investment Gone Bad: User Supposedly Loses Over $1 Million in an NFT Trade

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Investment Gone Bad: User Supposedly Loses Over $1 Million in an NFT Trade

Investment Gone Bad: User Supposedly Loses Over $1 Million in an NFT Trade

It’s safe to say that non-fungible tokens have seen better days as liquidity dries up amid a broader market downturn and collapsing prices. Amid all this, an investor has let go of an NFT they bought for more than $1 million for less than $10K.

There are many stories of users turning a small investment into a massive bank, but this one is not one of them. In fact, it’s the exact opposite.
Just a few hours ago, someone sold a non-fungible token from a collection called CrypToadz by GREMPLIN for 6.9 ETH, worth roughly around $8.4K at the time of the transaction.
Interestingly enough, this same NFT was bought eight months ago for a whopping 300 ETH. At the time, ETH was trading at around $3.5K, making this a purchase worth $1,050,000.

Source: OpenSea

Of course, it’s not out of the question for the user to have sold the NFT to himself for such a high price back then in a process that’s known as wash-trading. It could also have been done in a bid to reduce taxes payable, although this would constitute a punishable offense.
The CrypToadz collection currently has a floor price of around 1.5 ETH – a shadow of its former self. Last year, at around the time the above purchase was made, the average NFT from this collection sold at above 21 ETH.