SuperRare is an exclusive NFT art marketplace built on Ethereum.
0 - 1,000%
Asset Class Return•1Y
SuperRare is an online marketplace to collect and trade unique, single-edition digital artworks. Each artwork on SuperRare is a digital collectible - a digital object secured by cryptography and tracked on the blockchain - created by an artist in the network, and tokenized as a crypto-collectible digital item that you can own and trade. SuperRare believes that collecting is inherently social, and since digital collectibles have a transparent record of ownership, SuperRare believes they’re perfect for a social environment. The social layer can make it easier to assess value and other context around items in the marketplace.
Things to Know
You make money on
Asset sold + Royalties
Term of investment
Own and trade rare digital artwork
10% royalty on secondary sales for artists
Trusted community that gives artists direct access to buyers
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
You can earn a return through buying and selling digital artwork NFTs on SuperRare. Purchase digital artworks that you believe are undervalued, wait for them to appreciate, and then sell them in the marketplace. While it's not investing, you can also make money on SuperRare by creating and selling your own digital artwork. On the primary sale of any artwork, also known as a “mint sale,” the artist gets 85% of the sale price. Any sale following a mint sale is considered a secondary sale. During a secondary sale, when a collector resells an artwork to a new owner, the collector gets 90% of the sale, and the original artist gets 10% as a royalty.
How SuperRare makes money
On the primary sale of any artwork, also known as a “mint sale” (the sale directly from the artist themselves after minting the artwork), the artist gets 85% of the sale price, and SuperRare takes the remaining 15% as a commission fee. On top of that, SuperRare charges a simple 3% transaction fee for all purchases, paid by the buyer.
Is it safe?
SuperRare was founded in 2017 by John Crain, Charles Crain, and Johnathan Perkins–the CEO, CTO, and CPO. They are also the founders of Pixura, the company building the crypto collectible technology running SuperRare.
SuperRare is safe because it is secured with the power of blockchain. Like most NFT marketplaces it is also non-custodial, meaning that your NFTs never leave your wallet until they are sold, they are simply locked into a smart contract, same with funds when placing a bid on an auction. When a sale occurs, the smart contract you agree to when listing or bidding on an NFT activates and pulls it from your wallet, in exchange depositing the funds you are owed, or vice versa. Everything is secured by the blockchain and verifiable.
How you’re taxed
There are two tax considerations to be had when purchasing NFTs:
Buying an NFT using Crypto
When The IRS states that “if you exchange virtual currency held as a capital asset for other property, including for goods or for another virtual currency, you will recognize a capital gain or loss.”
For example - if you purchased a unit of ether for $100 in 2018, it would now be worth around $1,700. If you used that ether unit to buy a $1,700 NFT, you would have to pay tax on the gain of $1,600 as part of the NFT purchase. You would owe the IRS — assuming a top capital gains rate of 20% — a tax of $320. You’re not spending currency, you’re spending an appreciated asset.
Selling an NFT for profit.
Profits earned from the sale of NFTs, the same as crypto, are taxed like stocks (short and long term capital gains). Whenever you sell an NFT, you incur a capital gain or loss. For example, if you bought an NFT for $10,000 of ETH (this is your cost-basis) and then sold it for $15,000 of ETH, you would incur a taxable capital gain of $5,000.
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