When someone says NFT, people close to the industry immediately think of expensive static images. However, the concept of non-fungible tokens suggests that NFT can be any digitized object, whether it is a video, a character in a game, a photo, a GIF, or a music track. The last one deserves special attention because, although it has not yet gained great fame, according to some experts, it may surpass the kings of the market shortly — unique JPEG images.
What is a music NFTs?
Music NFTs are comparatively new to the sphere and cannot be limited to one definition. However, they are verifiable digital collectibles whose primary component is song integration. Canadian producer, DJ, and musician Clarian was the first to release an album as an NFT token.
It becomes known that if you have unique audio, you have full rights to that file and can sell it at your discretion, just like with digital illustrations.
Essentially, the NFT is another way for musicians to spread their talent, become more popular, connect with fans, and earn extra income simultaneously.
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With non-fungible tokens and the platforms on which musicians can be placed, many independent artists could get a lot more money for their songs or album taken on streaming platforms before NFT came along. Fans, in turn, will be more than happy to pay the said amount, as they want to have a sense of ownership over the one-of-a-kind work of their favorite artist.
In addition, music NFTs allow artists to make extra money: they can place not only one owner for their NFT music but several, as well as create smart contracts with his royalties, which allow the artist to receive some amount of money from any secondary sales made in the market by new owners of the artwork made by the musician.
How do music NFTs work?
In the case of music, NFT is sold at auctions or at a fixed price by whoever puts it up for sale. Payment can be in cryptocurrency or cash, depending on the owner.
Moreover, it doesn’t have to be songs. Some authors sell tickets to physical or virtual concerts and announcements of previously unreleased songs. For example, British singer Boy George, American rapper and producer Snoop Dogg, and his compatriot Lionel Richie, among others publish exclusive content on the cryptocurrency NFT-platform.
In the case of music NFTs, the NFT system could allow musicians to own the original file of their music or creation, as if it were a work of art revalued over time and then sold to the public. Experts say this is a revolution for an industry that has suffered for a year from downloads and struggled to survive the crisis for years, the most skeptical doubt that this is the case since the key to music is more in its distribution than in the exclusivity of content, as in the case of a work of art.
What issues do they solve?
Music NFTs can be a new way of looking at the music industry and how artists are rewarded for their work. Although blockchain-based systems of any kind are relatively new, they offer promising results. Music NFTs can change the fortunes of artists, attract more fans, and ultimately change the industry for the better.
There is a wide range of potential uses for music NFTs. They can be used to provide access to discounted concert tickets, particular areas at concerts, or artist meet-and-greets. It all depends on how the artist wants to structure the NFTs they release. After all, as Wired editor Kevin Kelly has long argued, all artists need is one thousanf real fans to support them — and NFTs help brings that idea to life in an increasingly digital world.
It’s worth mentioning that music NFTs provide no royalties or copyright claims to purchasers — just like NFT JPEG by default. But there is also a growing subsector of royalty-oriented music NFTs.
Music NFTs: pros & cons
With the help of music NFTs, artists have the opportunity to regain control of their musical art. This means that the user does not have to deal with the unsatisfactory terms of the various record companies and their consequences. When you are poor and young, you will be happy to sign any contract that any record corporation will offer you, but in time you will regret your choice.
Here’s a list of opportunities that music NFTs can give young musicians:
- A democratic environment.
- More transparency.
- Equality between artists and their buyers.
- Opportunity to be heard for the young and the poor.
How can musicians create these NFTs?
For example, DJ and producer 3Lau, Mike Shinoda from Linkin Park, singer Grimes, and many others have already earned on the sale of their creations tied to NFT-tokens. Canadian singer The Weeknd 2021 announced his intentions to release the NFT of his new song. Given the artist’s popularity, there was every reason to believe he would make a significant amount from this deal.
Creating an NFT version of your product can be a monetization tool if you:
- A famous musician whose releases are always of interest to collectors.
- An artist whose audience is well-informed about the cryptocurrency market.
- A musician is working at the intersection of music and digital art.
- An extremely successful person.
What does it take to enter the NFT music market?
- to enter the crypto market with your creation, you must create an Ethereum wallet, which will hold your rewards from NFT sales;
- buy ETH. The account should have an amount to pay the so-called gas fee.
- bind your file to the IPFS file system;
- choose a platform where you will place your NFT;
- post an item or a collection;
- announce the release to your fans or try to attract the attention of digital art collectors.
The future of music NFTs
Since pandemic restrictions led to the cancellation of concerts, sports broadcasts, and entertainment, NFTs have become a means for fans to connect with their favorite bands and artists.
NFT trading volume increased by more than $44.2 billion in 2021 and has consistently broken records. The market capitalization of NFTs is expected to exceed $80 billion by 2025, with music NFTs believed to be well positioned to generate more revenue.
In addition to helping the music sector by bringing fans and artists closer together, music NFT also generates more income for artists without having to go through intermediaries. Artists seem to notice that Kings of Leon was the first band to release an album under the NFT name. Others like Linkin Park’s Mike Shinoda and Snoop Dogg have joined the NFT crowd.
Moreover, crypto wallets are experiencing explosive growth. For example, MetaMask alone has surpassed $30 million as of April 2021, up from $5 million in April 2020, so digital tastes are likely to expand. Crypto wallets are experiencing explosive growth.
Beyond the academic appeal, the music industry has jumped at the opportunity. Major labels like Universal Music Group are experimenting with virtual NFT bands with Bored Apes. And artists like Grimes and 3LAU have sold over $1 million worth of NFTs, opening up a new revenue stream.
Given the above, it seems that the NFT music sector will only grow in the future.
Music NFTs marketplaces
In a hype wave, online marketplaces for selling NFTs appear almost every day, but at the moment, the most popular are:
- Rarible is one of the most popular platforms for aspiring digital artists with the easiest moderation. Releasing your NFT on Rarible is as easy as uploading a video to YouTube.
- Nifty Gateway is the most elitist and representative marketplace, mainly because of the hype surrounding NFT, and it’s where singer Grimes sold her NFT collection. Unlike other marketplaces, Nifty Gateway allows you to link not only an Ethereum wallet to your account but also a regular bank account.
- Zora is a relatively new marketplace, where such musicians as Toro y Moi and Mura Masa put up their lots.
- SuperRare does not trade NFTs related to memes but is a veritable digital art gallery. NFT art critics carefully select all lots.
- OpenSea is the most popular marketplace for selling NFT tokens. Due to the increased attention to the service, moderation times can take several days.
- MakersPlace is another elite NFT gallery. To sell your art here, you first need to get an invitation to the community via Discord.
What do you think about music NFTs? Do you have any?