Bought my first NFT (Non-Fungible Token) yesterday.

Happy Hermit Crab

Part of the VeeFriends Collection by Gary Vaynerchuk.

I bought it during a Dutch Auction, which is where there is a stated starting price which is high (the ceiling price) and the price gradually lowers until it hits the floor price.

This NFT is a token on the Etherium block chain. It has my identifying number embedded in it. There is a token ID # and the owner ID#.

It is also a contract in that it guarantees me admission to the next 3 VeeCons in 2022, 2023, and 2024.

This token is also a collectible which I can sell, along with the contracted VeeCon admission, if I want to.

You can see my token at veefriends.com/4650-happy-hermit-crab.

The auction items were all priced in ETH. I paid .8128888888889 ETH for my token. I had to buy an ETH in advance of the auction in order to pay for my auction item. There was also a cost of doing business. The transaction fees are referred to as gas. The gas for this transaction cost 0.1 ETH.

With all the talk about taxing cryptocurrency transactions, I wonder if the IRS would see this as a taxable event or how they would value my token.

I am learning by doing. This is all so interesting to me!