NFTs (or Non-Fungible Tokens) are ushering in the next era of internet creative commerce and they offer the potential to shift the current trajectory of today’s music industry. But for so many artists, it’s just another complicated digital space to worry about.
So, what are NFT?
NFTs are digital assets that have objective ownership through blockchain technology. They can come in the form of digital art, videos, sports cards, collectibles, and yes, music, that are exclusive to the owners and unable to be deleted or duplicated (this is what non-fungible means).
NFTs were originally only able to be purchased or traded with Ethereum (a cryptocurrency that can very generally be related to Bitcoin), but now are expanding into different currencies. NFT creators can release projects that hold any specific amount of “tokens” for people to buy into their projects.
Although NFTs look like they are only digital art files on the surface (some projects could actually just be that), they’re also often paired with a smart contract that can provide specifics into any additional perks or terms attached with the purchase of the NFT. These could be customized contracts that are able to be adjusted for the lifetime of the NFT by the IP owner.
For example, a restaurant could provide an NFT token to its customers for discounts or special access. A digital artist could provide part-ownership of the IP to the owner of an NFT token so that owners (not just the artist) could earn royalties from any future sales.
NFTs might just be the biggest disruptor to the music industry since streaming.
Big-name artists are certainly catching on. Deadmau5, Grimes, Steve Aoki, and Kings of Leon, among others, have already made waves in the NFT world. And we’re talking big waves—DJ and producer 3LAU sold a record-breaking 12 million worth of NFTs in February 2021, and other artists have made well into the millions, as well.
What are NFTs and what do they mean for the music industry? Read this blog by SAYANA. It might help build your knowledge.
As for investing, it’s thinking outside the box. We are talking about disruption. It may impact your job and the company you work for. It will also redirect capital if there are greater rewards. It means, taking an interest to capitalise on possible opportunities.
As always, if you need a conversation…