How a Song A Day Artist Lost and Recovered From a Crypto Collapse

Jonathan Mann, known for his long-running “Song A Day” project, turned a personal financial disaster into his latest musical release. After selling his entire back catalog as NFTs for around $3 million, Mann saw his windfall disappear as crypto markets collapsed. In a song shared on X, he explained how the unexpected tax consequences and the Terra ecosystem crash left him in deep financial trouble.

Good to know

• Mann sold 3,700 songs on January 1, 2022, earning $3 million in Ether.
• He owed over $1 million in taxes based on ETH’s value at the time of receipt.
• A rare Autoglyph NFT sale saved him from losing his house and his wife’s retirement savings.

On the first day of 2022, Mann received roughly $3 million by selling his back catalog of songs as NFTs for $800 apiece. The money came in the form of ETH. Hoping the price would rise, Mann and his wife chose not to cash out. “We didn’t have a plan,” he admitted.

But as ETH fell throughout January, the decision to hold became riskier. At the same time, the IRS considered his NFT sales as income, meaning his tax bill reflected the ETH value at the time of receipt, not its later price drop.

Instead of selling at a loss to cover the tax, Mann used some ETH as collateral to take out a loan on Aave. That decision backfired when the Terra crash triggered liquidations across the ecosystem. Mann’s collateral was wiped out—300 ETH vanished, leaving him with nothing to cover his tax obligation.

A Tax Nightmare and a Last-Chance Asset

After months of reviewing transaction history with his accountant, Mann learned that he owed exactly $1,095,171.79. With the threat of liens on their home and damage to his wife’s retirement account, Mann searched for one last way out.

The solution came in the form of a rare Autoglyph NFT he had acquired years earlier. He first tried to sell it on X without success, but a broker eventually found a buyer willing to pay $1.1 million. Mann closed the deal and used the proceeds to cover the IRS bill. Due to the losses from the Aave loan, he did not owe capital gains tax on the sale.

“It felt so bittersweet to be done,” Mann sang, reflecting on the entire ordeal.

Still Singing Every Day

Even after losing nearly everything and barely escaping the tax mess, Mann continues his “Song A Day” project. He still releases daily tracks and sells them as NFTs. In the final lines of his recent song, he stays hopeful that someday, he might hit the $3 million mark again—hopefully under better conditions.