Now of course there's a mountain of clueless suckers kicking off a regular tulip mania-style bubble. I wonder how many more weeks it will last.
[1] https://news.artnet.com/art-world/crypto-punk-500-million-sa...
haha that’s a meme in crypto space about being that guy
It’s not a good look to be on the receiving end of government benefits and services, gloating about your lack of contribution and encouraging others not to. This may look good in crypto circles but here in the real world it makes you look pretty bad, not gonna lie.
I've always wondered how those Bond villains accrued an army of employees on their remote militarized outposts helping them do crime, though I'm beginning to suspect they just slippery-sloped their way into it.
It's about not offering anything to a discussion as they also don't even know about what tax is relevant. This person follows that rubric exactly, as they "suspect" a tax is involved, when a flash loan wash sale would just as easily not cause any tax at all and they offer no introspection into the nature of the transaction and what questions remain about how it conforms with the tax code. A person borrows money to pretend to transfer an asset to themselves and returns the money. Neither borrowing money or moving the asset to your other account are tax events. The tax remindoooooooor comes to the discussion way after the party, clueless, and says something clueless. Its predictable, its meme worthy. Pretty much everyone in crypto runs into people like them so the memes are made.
You can see why pretending no taxes are due because "blonkchain" and making fun of someone who suggests that doing some due diligence on a half billion dollar transaction isn't a good look, can't you?
Do you really think it's unreasonable to assume a half billion dollar capital gain isn't a taxable event?
> "... when a flash loan wash sale would just as easily not cause any tax at all"
What's your basis for this guess? Is it because a tax wouldn't be due on the sale of stock you repurchased within 30 days? That's called the wash-sale rule and it only applies to securities. It doesn't even apply to commodities or futures - or crypto. So either it's a security, in which case this is a federal crime, or it's not a security, and the wash trader has to pay taxes on the first transaction - and a hypothetical second transaction would have to be made to generate a loss to cover.
Y'all need to get over yourselves, the toxic community is easily the worst thing about crypto - and that's after figuring in the ruining the world with your emissions so you can gamble bit.
You are the only one shoehorning your preexisting notions into a benign comment. There are so many better ways you could apply your energy. Many blockchain skeptics wind up defending the technology more often because their other skeptical friends are saying procedurally generated non-sequiturs. So they wind up in an educational role as their criticisms become more valid, and the education winds up strengthening the space by fixing the criticisms. Right now you’ve been stuck on less valid criticisms, for years. Its not going away so why not help make it better when you learn valid criticisms.
I wrote my perspectives, and you are once again just being toxic. This isn't reddit.
We disagree, and we can disagree here, civilly.
No need to be insulting.
Whew, good thing it's not a security, otherwise it would 100% absolutely be a half billion dollar illegal wash trade, and that kind of stuff comes with time in the big house. IANAL, but stunts, amirite?
I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading. In fact, you can very easily check it on etherscan or similar tools that this was a flash loan.
I think in a lot of cases that's simply wishful thinking. They Howey test is actually a very good fit in the crypto space broadly, especially alongside the guidance from the SEC on how to interpret it with respect to digital assets. [1] Most tokens are just straight-up securities, what we're lacking isn't regulation but enforcement.
NFTs are likely not securities as they fail the Howey test. [2] Fractionalized NFTs, however, probably are securities.
> I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading.
It's still wash trading, of course, it may not be a crime because it's not done against a security as I mentioned.
IMO it could be some other kind of fraud or civil matter already as you're enticing a purchase on the basis of intentionally misrepresenting past trades. If not, I agree, this might be a good area for some additional regulation, either here or in markets broadly (I'm looking at you, art and collectibles).
[1] https://www.sec.gov/files/dlt-framework.pdf
[2] https://clsbluesky.law.columbia.edu/2021/03/19/latham-watkin...
NFTs for things that already exist are likely not securities. But NFTs for things that don't exist yet, such as as virtual land in un-implemented virtual worlds, do pass the Howey Test. You're funding the development of something, not buying something that already exists. That's an investment. At some point, probably after the first widely publicized collapse, the SEC will shut many of the future-oriented NFTs down, much as they did to the ICOs starting in 2018.
Virtual land in vaporware virtual worlds is the same scam as selling undeveloped swampland in Florida, a popular scam in the 1950s.[1] There are few new scams. It's mostly the same old ones with new shiny packaging. Most of them are listed in Extraordinary Popular Delusions and the Madness of Crowds, from 1841.
Why do you think the rule against wash trading is there?
Because people systematically manipulated markets with it.
> I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading.
Your argument is, "I can do this really fast, therefore it's not criminal"?
In fact, marketplaces have already started to flag these transactions[1].
I'm not sure if the link between NFTs and money laundering can be downplayed as conspiracy theory. Even yesterday Reuters published a newspiece on NFTs being auctioned by the likes of Sotheby's, and where crypto-rich buyers pay NFT auctions with crypto, where a cryptocurrency lawyer was quoted as pointing out money laundering via cryptocurrencies was a "known fact."
https://www.reuters.com/business/finance/new-masters-how-auc...
Using NFT transactions to launder money isn't exactly a novel idea as the art world is dominated and driven by money laundering schemes. In fact, in Mexico the art market tanked 70% once the Mexican government passed legislation requiring more info from buyers, because it's believed Mexican cartel rings were behind these transactions.
https://www.artandobject.com/news/how-money-laundering-works...
Not really, it's actually the other way around. Whataboutism aside, crypto proponents somehow try to maintain a cognitive dissonance of how crypto is designed to be unregulated and out of government's reach and at the same time show a kneejerk reaction to any comment on how crypto is used to perform transactions not allowed by regulation controlled by governments such as securities fraud and money laundering.