Buying tokens before public trading through a private sale, initial DEX offering, or launchpad, often paid in ETH or a stablecoin with delivery later.
Paying in crypto is a disposal of the crypto you paid with. Basis in the new tokens is the value of what you paid, and the holding period starts when you acquire the tokens (or arguably the contractual right), not when they unlock. Failed launches produce a capital loss when the claim is worthless.
Yes, on the ETH: paying with crypto is a disposal. The tokens you receive take a basis equal to what you paid.
Source: IRS Notice 2014-21
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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