Former employee of nft marketplace OpenSea arrested for insider trading – Computer – News

Yes, I have heard that, for example, art is used in this way, for example for tax evasion. See e.g. https://www.bloomberg.com…res-use-this-art-strategy in https://www.quora.com/How…orld-used-for-tax-dodging

For example: A rich person instructs an artist or a random person to make a collection of figurines. Warhammer, I’ll name just a few.

He sells one of these to a buddy of his for a million.

He then donates the entire collection to a museum – including friends of his, or whatever. Because that one sold for a million, the entire collection of 100 dolls is worth 100 million. And because it’s a donation to the arts, that entire amount is tax deductible.

So with an investment of tens, it has deducted 100 million from the tax. This is probably an oversimplification and this type of fraud will also be monitored (or the legislation regarding tax deductions will be amended), but it can happen. And with such a construction you can be very creative.

So are NFTs. You generate a series of ugly monkeys; you ping your crypto bros on Discord to buy some for ridiculous amounts (and give them some under the table too). This will then be in the news and on social media; “NFT sold for 10K!”. Ideally, they will also resell for higher a few times, so that social media can also say “NFT that used to be sold for 10K is now worth 100K!”, even if that money stays between those people. Then the masses arrive who are not in the same group, who massively throw themselves into that ugly monkey collection because they can be worth 10 times as much.

True, a small part of that group buys a monkey and sells it on for a profit while the hype is still going on, but the majority find out that their monkey isn’t worth that much after all, or can’t be sold.

Anyway, those who generated the monkeys and put them on the market first are fine with it, they’ve made a ton of money.

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