Jonathan Mann, the artist behind the decade-long “Song A Day” project, is making headlines not for his music—but for a viral crypto confession that’s struck a nerve across Web3. In a newly released song shared on X, Mann chronicles how he earned $3 million selling his NFT song archive—only to lose it all amid the crypto crash and a crushing tax bill.
“This is the story of how I made three million dollars and lost it,” he sings.
“And how I owed the IRS more money than I made in 10 previous years.”
The emotionally raw lyrics reveal the devastating financial fallout of poorly timed gains, unclear crypto tax rules, and the brutal volatility of the digital asset market. While the headline number may shock, Mann’s story reflects a wider trend: creators riding early Web3 success only to be blindsided by market downturns and regulatory complexity.
From Windfall to Wipeout: Artist Faces $1M Tax Bill
On January 1, 2022, Mann sold 3,700 songs as NFTs, priced at around $800 each and paid entirely in Ethereum. Rather than converting his earnings to cash, he and his wife chose to hold the ETH—betting that prices would climb. But they didn’t account for the looming tax burden or the risks of holding volatile assets.
Soon after, ETH prices began to decline. Then came the IRS. Because the U.S. tax code treats NFT proceeds as ordinary income, Mann owed taxes based on the dollar value of the ETH at the time of the sale—not at the time he intended to pay.
Trying to avoid a fire sale, Mann borrowed against his crypto using the decentralized platform Aave. But when the Terra ecosystem collapsed, it triggered cascading liquidations across DeFi—wiping out 300 ETH and deepening his losses.
The result: a tax bill north of $1 million, with the crypto earnings long gone. Mann’s ordeal underscores the financial minefield faced by NFT creators who fail to plan for taxes and market risk.
Rare NFT Rescues Musician From Crushing IRS Debt
Staring down the possibility of liens, bankruptcy, and the loss of his wife’s retirement fund, Mann turned to a digital asset he had nearly forgotten: a rare Autoglyph NFT, one of the earliest and most coveted generative art pieces on Ethereum.
Initially, Mann tried selling the Autoglyph through X, but bids came up short. Eventually, he found a broker who connected him to a private collector—who offered $1.1 million, just enough to clear his debt with the IRS.
Due to previous losses from the Aave liquidation, Mann owed no additional taxes on the Autoglyph sale, giving him a financial lifeline without further penalty.
As he sings in the final verse of his viral track:
“It felt so bittersweet to be done.”
Despite the rollercoaster, Mann hasn’t given up. He continues to write and mint new songs every day as NFTs, determined to keep creating—and perhaps catch lightning in a bottle once more.
Quick Facts
- Total NFT earnings: $3 million in ETH from “Song A Day”
- Tax obligation: Over $1 million based on 2022 sale prices
- Losses: 300 ETH liquidated via Aave during the Terra collapse
- Rescue asset: Rare Autoglyph NFT sold for $1.1 million
- Current status: Mann continues minting daily NFT songs
