A practical guide to understanding the legal and tax implications of holding, transacting, or disposing of First Blood (1ST) tokens — from recordkeeping to regulatory uncertainty.
First Blood (1ST) is an Ethereum‑based token that was launched in 2016 as part of a decentralised esports betting and tournament platform. The project allowed gamers to compete and place wagers on matches using the 1ST token, with smart contracts handling payouts. While the concept generated significant interest during the initial coin offering (ICO) boom, the platform's activity declined over the years, and the token is now considered a legacy asset with limited liquidity.
As of 2026, First Blood is no longer an actively developed project. The token has been delisted from most major cryptocurrency exchanges, although it may still trade on some decentralised exchanges (DEXs) or over‑the‑counter (OTC) markets. Many holders have simply abandoned their holdings, while others may be unsure how to handle the token from a legal and tax perspective.
Tax authorities in many countries treat cryptocurrency as property or a capital asset. This means that any disposal — including selling, swapping, or even using tokens to pay for goods or services — may trigger a taxable event. For legacy tokens like 1ST, you may face unique challenges, such as determining fair market value when no active market exists. Being proactive about compliance can help you avoid penalties and interest.
Not all interactions with cryptocurrency are taxable. Understanding which events trigger tax obligations is essential for any holder of 1ST.
When you sell your 1ST tokens for a fiat currency (e.g., USD, EUR, GBP), you realise a capital gain or loss. The taxable amount is the difference between the sale proceeds and your cost basis (the original purchase price plus any transaction fees). This is the most straightforward taxable event.
In many jurisdictions, swapping one cryptocurrency for another (e.g., 1ST to ETH or BTC) is also considered a disposal and triggers a capital gain or loss. Even if no fiat currency changes hands, the tax authorities will assign a fair market value to the tokens at the time of the swap.
If you received 1ST tokens via an airdrop or as a result of a hard fork, the receipt may be treated as income at the fair market value on the day of receipt. This creates an income tax obligation in some countries, and it also establishes a cost basis for future disposals.
If you use your 1ST tokens to purchase a product or service (assuming any merchant accepted them), that transaction is treated as a disposal. The fair market value of the tokens at the time of the purchase is compared to your cost basis, resulting in a capital gain or loss.
If you have permanently lost access to your 1ST tokens (e.g., lost private keys), you may be able to claim a capital loss. However, the rules vary, and you will need to provide substantial evidence to support such a claim.
Accurate recordkeeping is the single most important step you can take to ensure you can meet your tax obligations. For legacy tokens like 1ST, records may be harder to obtain, making it even more critical to keep your own detailed logs.
Most tax authorities require you to report capital gains and losses on your annual tax return. The specific forms and rules vary, but the underlying principles are similar.
Gain/Loss = Sale Proceeds – Cost Basis
In many countries, the holding period affects the tax rate. If you held the tokens for less than one year, the gain may be taxed at ordinary income rates (short‑term). If you held for more than one year, it may be taxed at lower capital gains rates (long‑term). Check your local rules.
For a token like 1ST that is no longer actively traded, determining the fair market value at the time of a transaction can be difficult. Possible approaches include:
It is essential to document your valuation method in case of an audit.
Legacy tokens like First Blood exist in a regulatory grey area in many countries. While tax treatment is often clear, other compliance aspects — such as securities laws, anti‑money laundering (AML) obligations, and corporate reporting — can be ambiguous.
Many tax authorities have not issued specific guidance on how to handle tokens that are delisted, inactive, or have negligible value. This creates uncertainty, especially when it comes to determining cost basis for tokens that are no longer quoted.
Tax rules vary significantly between countries. For example:
What applies in one country may not apply in another. You must research the rules in your specific location.
Depending on how you acquired 1ST (e.g., through an ICO), there is a possibility that the token could be classified as a security in some jurisdictions. This could impose additional reporting or registration requirements. While this is less likely for a defunct project, it is still a factor to consider, especially if you are a large holder or involved in promoting the token.
Given the complexity and the uncertain status of First Blood, there are several situations where professional advice is strongly recommended.
Before selling, swapping, or claiming a loss on your 1ST tokens, a tax professional can help you model the potential tax consequences and advise on the best strategy. They can also help you document your valuation method and prepare your tax returns accurately.
Look for a tax advisor or accountant who has experience with cryptocurrency. Ask them about their familiarity with legacy tokens and their approach to valuation. A good professional will be able to guide you through the specific rules of your country and help you stay compliant.
Different actions you might take with your 1ST tokens have different tax consequences. The table below outlines common scenarios and their typical treatment.
| Action | Taxable Event? | How to Calculate Gain/Loss | Recordkeeping Complexity |
|---|---|---|---|
| Holding 1ST | No | Not applicable (no disposal) | Low — track basis and acquisition dates |
| Selling for fiat | Yes | Sale proceeds minus cost basis | Medium — need sale price and basis |
| Swapping for another token | Yes | FMV of new token at swap time minus basis | High — need FMV of both tokens |
| Using to pay for goods/services | Yes | FMV of goods/services minus basis | Medium — need valuation of service |
| Receiving via airdrop | Income (in most countries) | FMV at receipt — reported as income | Medium — record date and value |
| Abandoning / losing keys | Potentially (capital loss) | Basis minus zero (loss) | High — requires evidence of loss |
| Donating to charity | Generally not taxable (may be deductible) | FMV at donation (may offset income) | Medium — need charity receipt and valuation |
This table is a general summary and does not replace professional advice. Tax treatment varies by jurisdiction and specific circumstances.
Ahmed participated in the First Blood ICO in 2016 and purchased 5,000 1ST tokens for $500 (cost basis of $0.10 per token). He forgot about them until 2026, when he discovered the project is dead. He finds a DEX where 1ST is still thinly traded at $0.02 per token.
His options:
Ahmed decides to sell the tokens and use the loss to offset gains he made elsewhere. He ensures he has a record of the DEX trade and the valuation method used. He also consults a tax advisor to confirm that the loss is deductible in his jurisdiction.
Use this checklist to ensure you are on track with your legal and tax responsibilities.
Dealing with legacy tokens like First Blood can lead to errors. Here are the most frequent pitfalls.
Tax and legal rules for cryptocurrency are evolving. What is acceptable today may change tomorrow, potentially with retroactive effect. You are responsible for understanding and complying with the laws that apply to you.
Legacy tokens carry additional risks. Illiquidity, lack of market data, and project abandonment make it difficult to determine fair value and may expose you to valuation disputes with tax authorities.
Penalties for non‑compliance can be severe. Failure to report taxable events, incorrect reporting, or underpayment of taxes can result in interest, fines, and even criminal prosecution in some jurisdictions.
This article does not provide personalised advice. The information contained here is for general educational purposes only. It does not consider your personal financial situation, tax residency, or investment objectives. You should not rely on this article as a substitute for independent professional advice.
First Blood (1ST) is an Ethereum‑based token that was launched as part of a decentralised esports betting and tournament platform. The project aimed to allow players to compete and wager on gaming matches. As of 2026, the original project is largely inactive, and the token is considered a legacy asset with limited trading availability.
In most jurisdictions, you are required to report capital gains or losses from disposing of cryptocurrency, including tokens like 1ST. Even if the token is delisted or inactive, if you sell, swap, or otherwise dispose of it, a taxable event may occur. You should consult a tax professional for jurisdiction‑specific guidance.
The cost basis is typically the fair market value of the tokens at the time you acquired them, converted to your local currency. If you acquired them through a purchase, use the purchase price. For airdrops or mining, the cost basis is usually the market value on the day of receipt. Good recordkeeping is essential to establish your basis.
Capital gain (or loss) is generally calculated as the sale proceeds minus the cost basis. If the token is delisted and you sell it via a decentralised exchange (DEX), the sale proceeds are the market value you receive in the trade. If there is no active market, determining fair market value may be challenging; in such cases, you may need to use a reasonable valuation method or consult a professional.
Most tax authorities do not differentiate between active and legacy tokens; they are treated as property or assets. However, regulatory uncertainty exists regarding valuation, especially if the token has low liquidity. Some jurisdictions may also have specific rules for tokens that are deemed worthless or abandoned.
If you have permanently lost access to your tokens (e.g., lost private keys), you may be able to claim a capital loss on your tax return, subject to your local tax rules. You will need to provide evidence of the loss, such as wallet addresses and transaction records. Consult a tax advisor to determine if this applies to your situation.
The answer depends on your personal tax situation, the current value of the tokens, and your expectations for future appreciation. Selling may trigger a taxable gain or loss. Holding does not create a tax event in most jurisdictions, but you must still track your basis. There is no one‑size‑fits‑all answer; professional advice is recommended.
You can check cryptocurrency data aggregators like CoinMarketCap or CoinGecko for the latest market status and exchange listings. Also, check the official First Blood project channels (if still active) or community forums. However, as a legacy token, it may be delisted from most major exchanges; you may need to use decentralized exchanges or peer‑to‑peer platforms.