Messi Collectibles Skyrocket & Crypto Tax Breaks
Record-breaking prices for Messi memorabilia, and why investors are donating NFTs
Cultured is a newsletter that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more. Cultured is produced by Otis, an alternative investment platform that was recently acquired by Public.com.
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🗞 STORIES OF THE DAY
Messi collectibles are breaking records in a red-hot market
Leo Messi is one of the most popular soccer players of all time, and his collectibles market has always reflected that fame. But two record-breaking auctions at Goldin showed that Messi memorabilia may be some of the sector’s most valuable.
In early April, a 2014 Panini World Cup Gold Prizm card went for $522,000, becoming the highest-value modern soccer card. Weeks later, Messi’s El Clasico Match jersey sold for $450,000, setting a record for the most expensive Messi jersey.
Both items are particularly rare. The 2014 card was part of the first major US soccer release and is in mint condition, while the jersey was worn by Messi in his iconic 2017 El Clasico match (and featured in countless photographs).
Our Take: This may be the start of a new wave of Messi mania.
Two auction records in one month is pretty impressive, even in a fast-growing collectibles market. The Panini card record is particularly impressive because Messi beat out Erling Haaland to take the top spot. It’s hard to predict the market, but there’s a good chance Messi memorabilia will continue to be some of the market’s most valuable items.
Wealthy crypto investors are starting to donate their NFTs to charity. The reason: a combination of a philanthropic spirit and a massive tax bill. Charities are taking advantage of this and have begun to accept crypto donations.
The IRS recently started treating NFTs and crypto as property, meaning that investors who donate their digital tokens can avoid paying capital gains tax on the asset, as well as deduct the cost of the gift from their tax bill.
Some charities have seen upwards of 30% of their donations come in the form of NFTs. This uptick has also spawned startups like the Giving Block, which helps facilitate NFT and crypto donations.
Our Take: The decision to treat crypto like property is actually really great for collectors’ tax bills.
With the IRS’s new rules, collectors that hold digital assets can now take advantage of the tax benefits enjoyed by traditional art collectors. It’s a win-win for collectors and charities alike. The former gets to reduce their tax burden, while the latter can tap into a new generation of donors.
✨ AROUND THE INTERNET
Who’s doing NFTs now? The Halal Guys, Dominique Ansel Bakery, and PGA Tour. (Check out the full list of NFTs by celebs and big brands on Otis Mag).
Almost 20 years after their first collab, Hello Kitty and Nike are rereleasing their collection.
A 2020 Lewis Hamilton F1 trading card sold for a mind-boggling $900,000 last week, shattering the record for the highest price F1 card sold at auction.
Here’s Johnny! The axe from The Shining sold for $175,000 after an extensive bidding war.
Weekend read: Josh Luber, the founder of StockX and Chief Vision Officer at Fanatics, talks about how he made collectibles cool again.