Discover more from Web3 Bits and Bytes
All about music NFTs
What are they and Why do they matter? What you need to know as a Musician and a Fan🤩🤩
Gm Gm readers!
We may like it or not, the industry has embraced NFTs. Even though the NFT market may look dead based on the July’22 data, it’s the much needed prompt for a reevaluation of the true value of the tokens, and other ways in which they are/can be used. 🤨🤨
A lot is going on in the digital space, from people buying BAYC NFTs to people getting scammed through phishing URLs and fake NFT marketplaces. Well that’s not the point today! 🧐
There’s no denying that NFTs have taken the art world by a storm last year and quickly infiltrated the music industry. That’s where Music NFTs come in!🤯🤯
In March 2021, Kings of Leon’s barrel-scraping When You See Yourself was the first NFT album to be released. The band's revolutionary tokens unlocked special perks like limited-edition vinyl and front row seats to future concerts for the holders. Snoop Dogg announced to make his acquired record label Death Row Records - into an NFT label. Mr. Baby Got Back himself, Sir Mix-A-Lot, even released a series of Bit Butts NFTs, to fundraise for colorectal cancer
Some say that music NFTs are the future of the music industry, while others say that they’re just a fad that will come and go. Let’s talk about what music NFTs are first.🤩
What are Music NFTs?
👉While a regular NFT is typically just a visual asset, a music NFT has a musical component as well as a visual one. Cryptocurrency doesn’t have the same policies and regulation that a centralized banking system does, but the transparency of the blockchain is considered self-regulating by design which is what we call decentralization.
👉Music is enjoyed by virtually every single person on a daily basis. But since the onset of online streaming platforms like Spotify, YouTube Music, and Amazon Music, money making opportunities for musicians have decreased significantly and pay very little ever for those with millions of fans.
👉Many famous musicians complain about not being paid what they are due. Most musicians say that they have no possibility of making a living out of music as things stand.
Can this be fixed? Read on to find out👇👇
Why Music NFTs?
📍Music NFTs treat music like pieces of art, turning it back into a commodity that can be bought and sold like it could in the prime time of the music industry, via MP3s, CDs, cassette tapes, and vinyl records.
📍Music NFTs allow fans to invest in artists that they enjoy and believe in, while receiving financial gains in return[in an ideal scenario]. Conversely, they allow artists to fund (or at least partially fund) their music projects directly through the support of their fans. So a win win for both musicians and fans.
What has changed from the traditional crowdfunding?🤔
👉The difference between buying your favorite artist’s NFT and contributing to a crowdfunding campaign, is that a donation is considered a gift that has no expectations of return. Besides that, it helps artists to fund their projects.
👉The dynamics are a bit different with music NFTs because they are purchased to help fund an artist’s creative endeavor, but also with the hope that it will deliver a financial return. In the era of the new web, fans are turned into shareholders, they own a stake in their favorite artists creations, and they stand to gain value from it.
Well, as I said before NFTs are more than just digital assets which provide some financial gains (though not always 🤪). NFTs offer more than just a money-making opportunity: Community and Identity.
It’s more about mapping our real and digital identities to the things that we care about. Musicians add valur to the NFT holders by providing special perks, entrance to an exclusive community of fans and exclusive merch which helps build a strong community and support for the artist. Well isn’t that amazing 🤗🥳
It’s not just an idea, there are many success stories. Steve Aoki’s one of them!
Any Steve Aoki fans in the house?🥳🥳
Steve Aoki, an early mainstream adopter of NFTs, launched A0K1VERSE - a metaverse and NFT membership platform in February 2022. Users join by buying an NFT passport, which includes free tickets to his live shows, free merchandise, members-only events & performances, metaversal &physical private events and much more. 😍
As Aoki puts himself 👇👇
“Previously it was always a one-way conversation. The artist produces something, and the fan either buys the product or not, but there is no conversation. With NFTs, there is a constant conversation.”
The impending question is:
How to Buy Music NFTs?🤔
📌NFT TONE is another NFT marketplace that focuses on music. It allows users to collect rare pieces of music, including first editions of recordings. Besides, the platform looks to embrace the sentimental value of owning an NFT from your favorite artist.
📌Swaraj Projekt is another Web3 native startup, that allows indie artistes to create music NFTs, and earn royalties on their auctions and secondary sales. The platform recently launched NFTs for Volume (1) of its Genesis Collection.
Music NFTs promise to be a novel way of looking at the music industry and at the way that artists are rewarded for their work. While blockchain-based systems of any kind are relatively new, they offer a lot of promise. Music NFTs could change the fortune of artists, could create greater fan involvement, and, ultimately, may change the industry for the better
The bottom line is 🧐🧐
📌If you’re a fan, DYOR before purchasing any music NFTs coz they’re so new that there isn’t enough long-term data about their returns. Invest money that you would be okay with losing. [NFA⚠️⚠️]
📌If you’re an artist ask your fans, is this something they would be interested in? Because you look really cool if your NFT goes from $30 to $50, but how do you look when it goes from $30 to 10 cents?
Are music NFTs a worthwhile investment? Quite likely. 😁😁
But, you’ll need to trust your gut and analyze value, and also need to evaluate your risk tolerance. Ultimately, you will need to trust and support a community.
NFTs can be hard to keep up with! Why not subscribe to the web3 newsletter to ensure you’re on top of everything?🤩
As ever, thank you for subscribing and reading. It matters. It’s a big deal to me.
And, remember, half-true compliments and feedbacks are always welcome at:
laisha.wadh [at] gmail [dot] com