At the end of 2021, Collins Dictionary named “NFT” the word of the year.
Non-fungible tokens have already rocked the art world and have become a household name. When you say “NFT” most people will at least understand that this is some kind of computerized image.
However, NFT technology has equal or greater potential for adoption in areas other than the visual arts, but these use cases are relatively unknown.
According to Footprint Analytics, music NFTs currently represent only 0.11% of the total NFT market. However, this is subject to change.
According to the IFPI, the global music industry generated $ 21.6 billion in revenue. Meanwhile, capital markets are harnessing the potential of musical NFTs.
- June: The first platform to launch NFTs on music copyright, Opulous, raised $ 6.5 million.
- August: The NFT Marketplace Catalog received $ 2.2 million in funding.
- November: The NFT Royal music platform, which helps music artists build web3 communities, secured $ 55 million in Series A funding from a16z,
What is a musical NFT?
Unlike an ordinary unit of cryptocurrency, each NFT can represent a unique digital asset, which serves as proof of ownership, while the token looks similar in the cyber world. These are unique digital collectibles that can represent many categories of digital assets including paintings, sounds, videos, and game items. Musical NFTs contain music files
The history of the music industry, from vinyl records and cassettes to music players and Spotify, shows a clear trend or technology that makes music more and more convenient, and NFTs will continue this trend.
How NFTs will change the music industry
The high price of musical NFTs compared to the cost of regular listening is attractive to independent musicians. On Spotify, the average “per piece” payout to artists is $ 0.003 to $ 0.005, which works out to just $ 3,000 to $ 5,000 for 1 million pieces. On the other hand, musical NFTs can easily fetch tens of thousands of dollars because [how is this economically possible?]
The main difference is that, in addition to the price of reading, music NFTs can also earn money based on their singular value to an individual, such as a fan or a collector.
Musical NFTs often have other exciting ‘bonuses’ attached to them in addition to the exchange of ownership of digital collectibles.
On the one hand, buyers can use music NFTs as a capital investment, where the artist transfers part of the ownership of the song, giving the buyer a real return on their investment.
On the other hand, the artist can also add benefits to NFT music, such as concert tickets or physical products, both of which provide the buyer with a memorable experience.
Proof of action
Musical NFTs can fund releases, which is a great opportunity for independent artists. For example, Danny Saucedo, a Swedish artist, released several singles with the help of fans.
Additionally, those who help artists fund crowdfunding may also receive NFTs as proof of their commitment and action within a group, which could lead to more benefits down the road like fan-only outings. , the possibility of participating in presales, etc.
3 major platforms for musical NFTs
While NFT platforms still support relatively few public channels, NFT music platforms have already hosted well-known artists.
While record companies control copyrights and internet companies hold the traffic, NFT music platforms directly connect artists with fans, democratizing music through fan-determined prices and firmly putting the music industry. music in the hands of ordinary people.
A new era for creators
The NFT market has exploded, penetrating every corner of the global art market in just one year. The emergence of musical NFTs has the potential to do the same with recording while giving artists more control over their work.
- January 10, 2021, Lesley
- Data source: footprint analysis
This report was brought to you by Footprint Analytics.
What is the imprint
Footprint Analytics is an all-in-one analytics platform for visualizing blockchain data and discovering insights. It cleans and integrates on-chain data so that users of all experience levels can quickly start researching tokens, projects, and protocols. With over a thousand dashboard templates and a drag-and-drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.
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