<\/p>\n
Everyone has an NFT or two that they regret holding. This is simply the nature of the NFT ecosystem. Sometimes floor prices plummet, and collectors are left with few options<\/a>. Or perhaps a creator is found to be a swindler<\/a>, leaving those who bought their IP in limbo. Or worse yet, maybe an unsolicited NFT<\/a> was airdropped into a user\u2019s wallet without consent.<\/p>\n Whatever the case, these unwanted NFTs can exist as a hindrance, a shameful reminder of the unsavory parts of the NFT space that enthusiasts often prefer to keep under wraps. But sending them to junk wallets or using marketplace features to hide them from the public is only a band-aid fix. Surely, there are better ways for collectors to rid themselves of unwanted NFTs.<\/p>\n Fortunately for degens, there are. And we aren\u2019t talking about simply burning (destroying) them. No, instead, various platforms are now offering holders unique rewards for dumping their NFTs.<\/p>\n So you want to get rid of some NFTs. Don\u2019t worry; we won\u2019t ask why, but just know you aren\u2019t alone. There\u2019s a multitude of reasons a collector might want to make an NFT vanish, with one of the most popular undoubtedly being for tax loss harvesting purposes.<\/p>\n In traditional tax loss harvesting<\/a>, an investor would sell an underperforming asset at a loss, then use that loss to reduce their taxable capital gains, offsetting the gains they made on other investments. This can also be done with NFTs and is a considerably popular way to reduce taxes placed on digital collectibles.<\/p>\n Of course, there are all sorts of considerations to be made surrounding NFTs and taxes<\/a>. This includes charitable giving, which you can read about in our full guide on the topic<\/a>. But for those looking to simply offload and offset, there are a few services to choose from.<\/p>\n The NFT Loss Harvestooor<\/a> is a free service created by the popular crypto tax software company CoinLedger<\/a>. Essentially, the Harvestooor is a simple Ethereum smart contract that allows users to sell an NFT and receive a substantially small amount of ETH (0.00000001) in return. By doing so, traders can realize capital losses on NFTs and lower their taxable income. <\/p>\n What\u2019s more, although the Harvestooor works well for collections that are still tradable, the makers of the service have been teasing a potential new service that would allow traders to rid themselves of even their \u201cilliquid, worthless, rug-pulled\u201d NFTs in the future<\/a>.<\/p>\n Unsellable NFTs<\/a> is another solid option for traders looking to harvest NFT losses. The platform acts quite similarly to the Loss Harvestooor but comes with the added functionality of being able to claim losses on hundreds of NFTs at a time (up to 1,000). Users can expect to receive around 0.000007 ETH for each NFT, only paying transaction fees (up to 0.08 ETH max) in the process.<\/p>\n Considering platforms like Blur<\/a> have consumed a sizeable amount of the NFT market share in recent months \u2014 exemplifying the avid NFT trader\u2019s affinity for zero-fee and high-volume trading \u2014 it makes sense that Unsellable has become a popular service for tax loss harvesting due to their high batch sizes. <\/p>\n Perhaps it isn\u2019t saving money that you\u2019re worried about, but rather saving face<\/em> in getting rid of your terrible NFTs. Well, there are options that could be just as rewarding.<\/p>\n The Junkyard<\/a> is a service somewhat parallel to tax loss harvesting that offers users the opportunity to both dump their NFTs and win NFTs that have been dumped. By \u201cdumping\u201d an NFT into The Junkyard, a user will earn not ETH but Junkcoin, a platform native currency. That currency can then be used to \u201cfish\u201d for NFTs that have been dumped by others.<\/p>\n To date, a wide variety of blue-chip NFTs have been routed through The Junkyard, including pieces from Clone X<\/a>, Doodles<\/a>, Otherside<\/a>, Cool Cats<\/a>, and more.<\/p>\n Although the ecosystem could <\/em>be used for tax loss harvesting, The Junkyard is more of a gamified trading experience. The platform also hosts a variety of in-development secondary and tertiary functionalities, like free-mint NFT collections, membership-based experiences, token staking, and more.<\/p>\n Chances are, there are other collectors out there who are holding onto a piece from the same collection as you and would also like to relieve themself of their unsatisfactory NFT. So why not try a liquidity pool? With services like NFT20<\/a>, a user can deposit any NFT into an available pool or create a pool themself (likely a necessity for pooling trash NFTs) and receive platform-native tokens in return.<\/p>\n Yes, this might be an unconventional way to \u201cget rid\u201d of an NFT, considering that liquidity pools are more often used to bolter trading and collector rewards. But it beats trying to hide a crap NFT for all eternity \u2014 even if it means losing out on profitability in return.<\/p>\n If all else fails, even after you\u2019ve considered or even made an attempt at the options listed above, you could always resort to the tried and true aforementioned band-aid fixes.<\/p>\n First, you could use the \u201chide\u201d feature offered by OpenSea<\/a> and other NFT marketplaces. These features are usually built directly into a marketplace\u2019s interface and often only require a user to select which NFTs they want to hide, then submit and verify a transaction to hide them.<\/p>\n On the other hand, you could just opt to send an unsavory NFT to the universal Ethereum burn address. Doing so is as easy as it seems. Just select a token either in your wallet or marketplace profile, initiate a transfer, and send it to the 0x address associated with burning (0x00\u2026dEaD<\/a>).<\/p>\nGetting rid of NFTs for tax purposes<\/h2>\n
The NFT Loss Harvestooor<\/h3>\n
Unsellable NFTs<\/h3>\n
Other ways to get rid of an NFT<\/h2>\n
The Junkyard<\/h3>\n
Liquidity Pool<\/h3>\n
Band-aid fixes<\/h3>\n