information Why Domain Name Investors Are Buying Up NFTs

[Lox]

There's a reason domain name investors are flocking to NFTs. And one industry veteran says it's still early days for unlocking NFT investment value.

Andrew Miller is CEO of ATM Holdings, and has invested in and advised some of the highest-value domain name transactions on record, including recent deals for Home.com, Candy.com, and Universal.com. He founded CreditCards.com and InsuranceQuotes.com, both successful exits.

He started investing in NFTs in 2021, and acquired his first Bored Ape in August.

read more

 

[eternaldomains]

Both artists & investors can claim expenses related to creation or acquisition ... + can avoid gains taxes (US 1031) by holding the artwork etc.

This.

Now I fully know why people are tossing trash art at high prices at the major auction houses. (e.g. 'The Scream')

And how people like Tru/mp stay rich while declaring losses year after year. (Search Google about his family's "art collection")

So here's a warning: Avoid at all costs unless you're in the super rich circle.

There's no need to figure out anything more about this.

This is nothing more than a collaborative t/e/x-avoiding scheme and an elaborate sidehustle scam made by the rich.

If you check the bottom of the website, you'll see Yu/ga//La/bs//L/L/C. Just searching the name will tell you that it's registered in Delaware. If you are not familiar with Delaware, this is the new favorite t/e/x haven for the rich.

Then there's the trademark on Bo/red//A/p/e. Filed by an agent named "RY/AN//S.//MC/PHEE". Upon searching his name, you'll see that he's under Ba/kos//&//Krit/zer, an legal firm who proudly serves many For/tune//5/0/0 companies.

There's no doubt for me about this. The rich are now moving their t/e/x-avoiding schemes online to counter any Covid restrictions & lockdowns on offline public auction houses.

People saying that selling crap domains at high prices = money washing? That's total BS, because moving money through art this way is waay easier, faster, bigger, and most importantly more legal. They can keep sending billions to each other and never pay a single cent to the gov.

This is the true purpose of B/A/Y/C + any other high profile "NFT" sites.

Don't even bother to invest in derivative domains related to these (except for keyword NFT). The names are deliberately chosen to avoid paying more than reg fees on domains (and a cheap price for the random one-and-only 4L com).

As for investing in other lower priced NFTs, yeah it's still a ponzi scheme. You can get in early and maybe make money. Problem is the gamification involved makes it a HUGE time-waster. Those in the domaining community aren't likely to know this, but there are tons of Russian scams out there involving investing-gaming schemes, which could've inspired the existence of these NFT "games"

 

[bmugford]

Both artists & investors can claim expenses related to creation or acquisition ... + can avoid gains taxes (US 1031) by holding the artwork etc.

1.) Artwork is subject to 28% long term capital gains tax in the US.

2.) Under the Tax Cuts and Jobs Act of 2017, exchanges of any property other than real estate no longer qualify as tax-free under Code Sec. 1031. So tax-free exchanges of appreciated artwork and collectibles no longer can receive this treatment.

 

[bmugford]

I am going to say what nobody says publicly. This so called art is ugly as hell and if people want want to waste eff you money on it which most of us don’t have that’s their choice.
Its like a ponzi scheme.

Yeah, NFT stuff aside the actual "art" is not all that impressive to me.

Brad

 

[bmugford]

1.) Artwork is subject to 28% long term capital gains tax in the US.

2.) Under the Tax Cuts and Jobs Act of 2017, exchanges of any property other than real estate no longer qualify as tax-free under Code Sec. 1031. So tax-free exchanges of appreciated artwork and collectibles no longer can receive this treatment.

Also, any gains people make on the crypto that was used to purchase NFT are also taxable, at least in the US, and several other countries.

 

[Kingslayer]

1.) Artwork is subject to 28% long term capital gains tax in the US.

2.) Under the Tax Cuts and Jobs Act of 2017, exchanges of any property other than real estate no longer qualify as tax-free under Code Sec. 1031. So tax-free exchanges of appreciated artwork and collectibles no longer can receive this treatment.

Yeah tax aside, there are so many things about Crypto I don’t understand and NFT’s confuse the hell out of me, it all just seems crazy to me.

Crypto (more so BitCoin), whilst I don’t think it’s ever going to be as big as some people believe (governments throughout the world won’t allow it to be), I do believe it has a future but I don’t believe in NFT’s long term future.

Its great people can make money on all that, but from my perspective, if you don’t understand something or don’t believe in it, it’s best staying away.

 

[jhm]

@Kingslayer Fair point

 

[DomainBarracksRob]

For everyone here

YES

There is tons of trash art nft and nft artist ..ALSO..

There is ALSO several GREAT Artist, Artwork, Projects & communities if you know where to look

That being said...it is more about the collectible aspect....

MOST people here and everywhere are over looking the COLLECTIBLE TRADING GAMES aspect of it!

If you EVER played or collected Pokemon or Magic The Gathering MTG? ( both this trading card games have cards that sell for hundreds of thousands ) MTG started selling DIGITAL version of their cards on their Online Gaming platform years ago(breakthrough no one picked up on)...you can't move those any where, they stay on the platform. They are not TOKENS not NFTS and people spend Thousands there...


What I am saying is there are a few Diamond project out there, I'm not talking about the art of a a Ugly Crypto Punk (I understand the collectability thought)......but let me just say....$ TRADING $CARD collection combined with a GAME is ADDICATIVE AS HELL!! Very enjoyable and cost $$$$ aka cardboard money.... as well as $ART$ in general always has commanded stupid money, no shocker.


When you combine NFTs, tokens, a community, incentives, Characters and actually MAKE a game out of the NFT collection that's being sold you have a winning combination. ( Not just a collections Digital Art game, I mean there couple in the works to turn their NFT Characters into an actual Video Game...one AXIE INF is a example, not my staple though.)


This is what many do not understand...ART is so vast there so much different routes to go

Also TM IP issues NFT solve that, this is way MUSIC and everyone in that space you see is getting in on it! Minting a Token on the blockchain is basically 22nd Century TMing IP to a degree do not quote me hear.


BUT the gaming/collectible Trading side of a Good Beautiful project with characters is very a strong incentive for others to join


IF you take Sports, trading cards, Betting, Wagering (flippers,hodlers), collectibles (pokemon,Sports Cards , MTG) Limited Editions....a JPEG is not a NFT....a JEPG is a JEPG until it's been minted...you can NOT send a screenshot image jpeg to your wallet, it is NOT a TOKEN, it is not on the Blockchain,

When you take all that mixed with the power of CRYPTO...and digital wallets as the source of money and exchanging power.....you have WHAT EVERYONE IS LOOKING AT NOW and can't wrap their heads around.

NFT is a new Tech...not a jpeg, it's changing tech...and it's going to and already is changing our world!

Yes tons of crap art out there

Tons of nice Verified Artist out there too, and verified Projects (startups)

People are going to be very surprised to see what some of these turn into..and NO I'm not talking apes or punks or your rugpulls.....

ps BEEPLEs Art is fantastic IMHO and I love seeing what he comes up with, and I follow him on every channel


Also..If you want to better understand NFTs, read Up on the Metaverse more and more....

To each there own and I'm not knocking anyone for their view

ps..as for the collectibles in numbers of collections..

When we say Rarity or STATS, it's not that its just a some rare ape, when oh look there is 9998 more like it...NO- Just "LIKE TRADING CARD GAMES", each one has specific traits (MORE THAN OTHERS, to add rarity to the collectors) HENCE why you only see so many of the BAYC with the "laser eyes" That's a rarity trait built into the design......and so someone here might benefit this from the bigger picture.... < THAT MEANS
(there are sites to look and rate these traits up if you know where to look, no different then the FF(Final Fanstasy Video Game , Game Guide Book ;p )
Out of the 10,000 BoredApeYachtCLub Apes on OpenSea with a current floor price of 24.99ETH

ONLY 69 have the laser eyes!!!!!!! 69>10,000

So out of the whole world, rich poor, stable or of the 48MILLION millionaires in the world .....If you want to 1 BAYC with Laser Eyes in your collection as in investment or just for your own enjoyment.....69 out of 10,000 ...price goes up quick.........RARITY (and this is just a small sample I had the time for)

Anyway cheers and have a great day all!

(sry for any typos)

 

[jhm]

For everyone here

YES

There is tons of trash art nft and nft artist ..ALSO..

There is ALSO several GREAT Artist, Artwork, Projects & communities if you know where to look

That being said...it is more about the collectible aspect....

MOST people here and everywhere are over looking the COLLECTIBLE TRADING GAMES aspect of it!

If you EVER played or collected Pokemon or Magic The Gathering MTG? ( both this trading card games have cards that sell for hundreds of thousands ) MTG started selling DIGITAL version of their cards on their Online Gaming platform...you can't move those any where, they stay on the platform. They are not TOKENS not NFTS and people spend Thousands there...


What I am saying is there are a few Diamond project out there, I'm not talking about the art of a a Ugly Crypto Punk (I understand the collectability thought)......but let me just say....$ TRADING $CARD collection combined with a GAME is ADDICATIVE AS HELL!! Very enjoyable and cost $$$$ aka cardboard money.... as well as $ART$ in general always has commanded stupid money, no shocker.


When you combine NFTs, tokens, a community, incentives, Characters and actually MAKE a game out of the NFT collection that's being sold you have a winning combination.


This is what many do not understand...ART is so vast there so much different routes to go

Also TM IP issues NFT solve that, this is way MUSIC and everyone in that space you see is getting in on it! Minting a Token on the blockchain is basically 22nd Century TMing IP to a degree do not quote me hear.


BUT the gaming/collectible Trading side of a Good Beautiful project with characters is very a strong incentive for others to join


IF you take Sports, trading cards, Betting, Wagering (flippers,hodlers), collectibles (pokemon,Sports Cards , MTG) Limited Editions....a JPEG is not a NFT....a JEPG is a JEPG until it's been minted...you can NOT send a screenshot image jpeg to your wallet, it is NOT a TOKEN, it is not on the Blockchain,

When you take all that mixed with the power of CRYPTO...and digital wallets as the source of money and exchanging power.....you have WHAT EVERYONE IS LOOKING AT NOW and can't wrap their heads around.

NFT is a new Tech...not a jpeg, it's changing tech...and it's going to and already is changing our world!

Yes tons of crap art out there

Tons of nice Verified Artist out there too, and verified Projects (startups)

People are going to be very surprised to see what some of these turn into..and NO I'm not talking apes or punks or your rugpulls.....

ps BEEPLEs Art is fantastic IMHO and I love seeing what he comes up with, and I follow him on every channel


Also..If you want to better understand NFTs, read Up on the Metaverse more and more....

To each there own and I'm not knocking anyone for their view

ps..as for the collectibles in numbers of collections..

When we say Rarity or STATS, it's not that its just a some rare ape, when oh look there is 9998 more liek it..."LIKE TRADING CARD GAMES", each one has specific traits (MORE THAN OTHERS, to add rarity to the collectors) HENCE why you only see so many of the BAYC with the "laser eyes" That's a rarity trait built into the design......and so someone here might benefit this from the bigger picture.... < THAT MEANS

Out of the 10,000 BoredApeYachtCLub aps on OpenSea with a current floor price of 24.99ETH

ONLY 69 have the laser eyes!!!!!!!

So out of the whole world, rich poor, stable or of the 48MILLION millionaires in the world .....If you want to 1 BAYC with Laser Eyes in your collection as in investment or just for your own enjoyment.....69 out of 10,000 ...price goes up quick.........RARITY (and this is just a small sample I had the time for)

Anyway cheers and have a great day all!

(sry for any typos)

Someone's passionate

 

[DomainBarracksRob]

Someone's passionate

lol

 

[Lox]

1.) Artwork is subject to 28% long term capital gains tax in the US.

2.) Under the Tax Cuts and Jobs Act of 2017, exchanges of any property other than real estate no longer qualify as tax-free under Code Sec. 1031. So tax-free exchanges of appreciated artwork and collectibles no longer can receive this treatment.

I should state the (US 1031) and "expenses" part on a different way, more clear.
(* As far as I know, the long-term capital gains in US are taxed using different cat and rates, starting 0% +)

If you operate your business in US, please check 1031. Otherwise or Offshore things are different.

Regards

 

[bmugford]

I should state the (US 1031) and "expenses" part on a different way, more clear.
(* As far as I know, the long-term capital gains in US are taxed using different cat and rates, starting 0% +)

If you operate your business in US, please check 1031. Otherwise or Offshore things are different.

Regards

I have a feeling this stuff is going to get a lot of people in major tax trouble.

Let's analyze how a transaction would work, at least in the US where crypto is considered property (not currency) and artwork has a specific rate when it comes to capital gains.

1.) Let's say you bought 25 ETH at $500 each. Your total cost basis is $12,500.

As long as you just hold that and don't realize the gains either by selling or usage that is fine. No unrealized gains are taxable.

2.) The second you sell it OR use it in exchange for goods it counts as realizing those gains. Let's say you buy something for 25 ETH at the current price (around $3,200). You have exchanged it for something with a market value of $80K.

The IRS will consider that realized gains.

The difference between that amount and your cost basis are realized gains. In this case that is $80,000 - $12,500 or $67,500 in realized gains.

This will either qualify for short or long term capital gains depending on how long you have held it.

3.) Now you have artwork you purchased with a cost basis of $80K.

4.) You will need to own this for 1+ year to qualify for long term capital gains. If you sell it inside the first year it counts as short term capital gains which is taxed at your ordinary income rate.

If you hold it more than one year is qualifies as long term capital gains, which is 28% on artwork. If you want to classify it as a collectible, that is also 28%.

Collectibles are considered alternative investments by the IRS and include things like art, stamps & coins, cards & comics, rare items, antiques, and so on. If collectibles are sold at a gain, you will be subject to a long-term capital gains tax rate of 28%, if disposed of after more than one year of ownership.

5.) There is also a potential 3.8% investment income tax (NIIT) in addition to the above capital gains, for high income earners.

This tax only applies to high-income taxpayers, such as single filers who make more than $200,000 and married couples who make more than $250,000

I hope that helps. People can have fun doing this if they want, but it is rather complex if you want to do the taxes properly. This is certainly something on the radar of the IRS.

Brad

 

[equity78]

I have a feeling this stuff is going to get a lot of people in major tax trouble.

Let's analyze how a transaction would work, at least in the US where crypto is considered property (not currency) and artwork has a specific rate when it comes to capital gains.

1.) Let's say you bought 25 ETH at $500 each. Your total cost basis is $12,500.

As long as you just hold that and don't realize the gains either by selling or usage that is fine. No unrealized gains are taxable.

2.) The second you sell it OR use it in exchange for goods it counts as realizing those gains. Let's say you buy something for 25 ETH at the current price (around $3,200). You have exchanged it for something with a market value of $80K.

The IRS will consider that realized gains.

The difference between that amount and your cost basis are realized gains. In this case that is $80,000 - $12,500 or $67,500 in realized gains.

This will either qualify for short or long term capital gains depending on how long you have held it.

3.) Now you have artwork you purchased with a cost basis of $80K.

4.) You will need to own this for 1+ year to qualify for long term capital gains. If you sell it inside the first year it counts as short term capital gains which is taxed at your ordinary income rate.

If you hold it more than one year is qualifies as long term capital gains, which is 28% on artwork. If you want to classify it as a collectible, that is also 28%.

Collectibles are considered alternative investments by the IRS and include things like art, stamps & coins, cards & comics, rare items, antiques, and so on. If collectibles are sold at a gain, you will be subject to a long-term capital gains tax rate of 28%, if disposed of after more than one year of ownership.

5.) There is also a potential 3.8% investment income tax (NIIT) in addition to the above capital gains, for high income earners.

This tax only applies to high-income taxpayers, such as single filers who make more than $200,000 and married couples who make more than $250,000

I hope that helps. People can have fun doing this if they want, but it is rather complex if you want to do the taxes properly. This is certainly something on the radar of the IRS.

Brad

You laid out a lot of stuff there Brad, good read. Thank you.

 

[Lox]

Museum Computer Network: "Although it would be possible to use NFT as an artistic medium, this is not what is dominating the market. NFTS are at their core high-priced JSON wall labels. (twitter thread)"

read more (mcn.edu)

 

[DomainBarracksRob]

Museum Computer Network: "Although it would be possible to use NFT as an artistic medium, this is not what is dominating the market. NFTS are at their core high-priced JSON wall labels. (twitter thread)"

Show attachment 198150

read more (mcn.edu)

Interesting, thanks for sharing…I enjoyed reading the Article..even if it was written by a bias anti nft liberal group…after all end of article the email is Marketing@ lol ….

Read all through his tweets, and if he only forced on the the “technical” side …he’s stilll missed many points, people aren’t buying them to have ownership the metadata url lol ….that’s like uhh nvm

anyway thanks for the share, love how it calls NFTs a scam in bold Top of page…


Meanwhile big names and company’s out there buying leveraging them lol . There are Scammers In the nft market yes, there’s scammers in the domain market too…any market, doesn’t make the nft market a scam nore NFTs scams,
As they are not. Smh

This guy feels the way about NFTs as Mike Mann feels about Bitcoin and Crypto…10yrs later..still going strong, guess a Decade isn’t enough data for him LoL …..which is why it was said he should stick to domains on LinkedIn lol….some people just won’t accept new things , especially when they can’t not make reasonable sense of them …


Hmm

His Twitter post of “Out of curiosity aka fast research” what a day looking at code and data..this lacking so many more aspects to the point he’s actually clueless on NFTs and what’s happening and why people are buying them and not just the money, he’s good on the tech end though, knows his terminology and functions …B+

 

[Digital Nomad]

Museum Computer Network: "Although it would be possible to use NFT as an artistic medium, this is not what is dominating the market. NFTS are at their core high-priced JSON wall labels. (twitter thread)"

Show attachment 198150

read more (mcn.edu)

@Lox @bmugford Thanks both of you for always letting us think deeper, to do real research, understanding the ins and outs to make calculated decisions on investments. I'll stick to domains for now.

Source: Twitter

 

[DomainBarracksRob]

@Lox @bmugford Thanks both of you for always letting us think deeper, to do real research, understanding the ins and outs to make calculated decisions on investments. I'll stick to domains for now.

Source: Twitter

Show attachment 198151

To play devils advocate on that agreement

what happens to your domains our domains ??

when icann, verisgin , go bust ? Lol

 

[Digital Nomad]

To play devils advocate on that agreement

what happens to your domains our domains ??

when icann, verisgin , go bust ? Lol

Good point, but I highly doubt icann/verisign will go bust, domains are an established part of the internet/economy for decades, others will take over/replace if anything else. But what if the NFT depends on the URL, then anyone can dropcatch the domain when expiring and start serving cats instead. But hey I like your point though. But I have to say, I still don't understand everything about NFTs, so I may be wrong.

 

[DomainBarracksRob]

Good point, but I highly doubt icann/verisign will go bust, domains are an established part of the internet/economy for decades, others will take over/replace if anything else. But what if the NFT depends on the URL, then anyone can dropcatch the domain when expiring and start serving cats instead. But hey I like your point though. But I have to say, I still don't understand everything about NFTs, so I may be wrong.

I see your point as well.
Yea I doubt that the urls will have anything to worry about…Web3 is the future of the net

and that address, he refers to ipfs.io

run by


https://protocol.ai/ Have a look

web3 Internet NFTs Metaverse ..it’s all the next tech digital era and now the ole Zuck has made it his new goal to see it through……sh*ts not going anywhere but forward and up!

 

[bmugford]

To play devils advocate on that agreement

what happens to your domains our domains ??

when icann, verisgin , go bust ? Lol

What happens to the value of any digital asset when the power grids go down?

The thing is you can only really plan for realistic scenarios. ICANN going down and .COM disappearing is just not a realistic scenario.

That would effect every major company far more than domain investors.

Brad

 

[DomainBarracksRob]

What happens to the value of any digital asset when the power grids go down?

The thing is you can only really plan for realistic scenarios. ICANN going down and .COM disappearing is just not a realistic scenario.

That would effect every single major company far more than domain investors.

Brad

True true, Perhaps not the best analogy I used,…..I could’ve used a hypothetically disclaimer lol

 

[Lox]

NFT, Ape, Wallet ... & URL (Domain Name)

https://twitter.com/x/status/1430322349811724292

 

[bmugford]

NFT, Ape, Wallet ... & URL (Domain Name)

https://twitter.com/x/status/1430322349811724292

Show attachment 198192

Well that sucks. So much for forever ownership.

One of the appealing things about an unregulated market is that it is unregulated.

The same thing happens with crypto. If an exchange loses or disappears with your holdings, if your account gets hacked and funds transferred, you are pretty much just f@cked.

What people like about this stuff is also a major downside. This is not like using your Chase VISA card where you are largely protected from fraud.

Brad

 

[noonoo1]

To good to miss out on.

 

[enterscope]

It's not about the art, it's about the ETH that is held in the art. It's sort of like a Physical Bitcoin with actual Bitcoin on it. There is the value of the Bitcoin plus the uniqueness of the Physical token. The art may not be amazing, but the crypto spent on it will be worth a lot. I get it, but might as well just acquire crypto and hold. Having a 1 million dollar Jpg isn't super practical, but if it keeps you from wasting your coin then go for it.

 

[robs01]

All these NFT things are psyops.

People have woken up to the fraud of the conventional fiat currency system - private bankers print these for free and then pass it on to you for your labor or assets; they also loan out their freely printed currency in return for a claim on your assets (eg: home loans); then they freely print more currency and devalue it to the point of being worthless. The whole system is a multi century fraud.

Now, they are looking for another deviously hidden scam to fool the masses once more. Enter NFTs and cryptocurrencies. Just like conventional fiat they are both created for (next to) nothing, and once again the aim is to give those intrinsically worthless tokens to you in return for your labor and assets. I guess it's mostly the same bankers behind them. That's one reason why we have been seeing huge transactions/moves in the values of these tokens... because the insiders doing these trades are teaching the dumb fools to buy into it and assign it "value", often obscenely high value. Sure, some people may have genuinely bought into it and even made some $, but the worthless doped-up-ape at $100 "value" is still worth the same as that doped-up-ape at $10k "value" - ie: nothing.

I wish anyone who buys into it all the best with it, while on the other hand I wish you lose your $ because it requires a greater fool to come along and lose his money so that you do not lose yours. No matter what offer of riches I'm tempted with I will never buy into it because I understand the psyop and the mafia behind it, plus I would not feel comfortable promoting this newest scam and passing this onto others.