karbon 🐺🦊

Confused about Yuga Labs selling cryptopunks IP for only $20m? Allow me to explain: "Infinite Node Foundation" or whatever is an arms length non-profit. There's overlap between boards on Yuga and Node foundation. Extremely tax advantageous to move the IP from one hand to the other. The acquisition price was never disclosed but let's assume it was 400m for cryptopunks IP for sake of argument. Yuga then realizes they overpaid for IP that can't monetize without public blowback after the woke punks fiasco. Yuga "sells" the IP to their associated non-profit booking a -380m loss on paper they can use for offsetting taxes. Meanwhile they still control the IP at arms length and are able to profit from the IP (they can be a little more creative under the banner of non-profit) "By why not donate the punk IP and get the full write off?" Zero chance it would command the same appraisal as it did in 2021 so better to use cost basis and have Yuga corp take the loss on paper. This is purely my speculation on how this went down based on the 7 years I spent working in the fine art / non-profit world.