Non-fungible tokens (NFTs) can appear random from the eyes of a beginner. So far, Music NFTs have been something you look at rather than listen to for the most part. But that could be changing sooner than you think.
Popular current tokens range from stone-faced bored apes to hyper-cutesy squishy squads and from classic art masterpieces to cartoon memorabilia like Stan Lee’s autographed portrait. So, it was about time music artists jumped in too.
The music industry started taking NFTs seriously in 2021. A handful of popular artists launched their NFT Music projects that attracted lots of attention and gained appreciation from fans. The NFT and crypto space is still very young, especially for the music industry.
The possibility of more direct artist-to-fan interaction and different methods to monetize work eliminating the need for traditional music publishers makes this a promising technological development.
Music NFT tokens are on the rise! and not just revolutionizes how music is experienced and shared between people but also how its economic value is stored and traded within the industry.
Thanks to early adopters like Eminem, Snoop Dogg, Kings of Leon, Shawn Mendes, and others, who had success trading in on their vast audiences, laid the foundation for smaller independent artists are moving in and build the ecosystem from the ground up.
In 2021, Rapper Snoop Dogg released his NFT collection called “A Journey with the Dogg” featuring Snoop’s memories from his early years, NFT-inspired artwork, and an original track called “NFT,” and “Snoop Dogge Coins.” The NFT drop lasted about a limited time of 48 hours, with Snoop Dogg earning over $100,000 for just one of the NFT pieces sold.
While most NFT albums are released in electronic music format, Kings of Leon became the first band who choose to do it in blockchain format by entering the NFT world in 2021.
“While You See Yourself” was released on the blockchain-based NFT platform, Yellow Heart.
You may also like, the Tribe X NFT project
What is NFT music? And How do they work?
Music NFT is a certificate of ownership of a unique musical work that can be sold to different people. These NFT music tokens are encoded into a blockchain network, most likely using Ethereum. The owner has the exclusive right to determine how the composition needs to be used.
How do music NFTs work?
This economic concept of fungibility is important because a lot of works in the Art and Music industry that make use of NFTs aren’t actually the complete NFTs in the strictest sense of the word.
Something is non-fungible if it is simply unique and cannot be replaced by another thing.
For Instance, the original recording of a piece of music is non-fungible, but the copies of it sold are fungible. This is because one copy is easily replaced with another identical copy.
let’s see how Music NFTs will impact the music industry.
How NFTs Could Change the Music Industry
Music fans are a highly engaged audience all over the planet. Selling music and related artwork via the blockchain is probably the quickest way for an artist to develop a direct relationship with a fan base without any requirement for a record label or music-streaming service.
If done properly, NFT music can equate to a bigger profit for the creator. However, minting music NFTs isn’t free. Ethereum gas fees and NFT marketplace fees for listing and selling the NFT music work can still add up to a significant total amount.
The question still remains, Can NFTs replace record labels and streaming giants?
Not anytime soon. But there’s something to be said for the wide distribution that can be gained from partnering with a more traditional music industry business player.
The Middleman Issue
Payment to artists from music industry intermediaries, agents, or what we call a middleman has always been controversial, and the digital era has been no different, artists don’t get what they deserve.
Some high-profile artists starting to bankroll serious income using NFTs in the past 2021, have laid the groundwork for what could be yet another transformation of the music industry down the road moving forward in 2022.
Is investment in NFT Music a Good Idea in 2022?
NFTs burst into the scene a few years back when some digital art began selling for millions of dollars. Traders and Investors who are always on the lookout for a way to earn a quick buck started getting interested in this new niche within the cryptocurrency and blockchain technology world.
Perhaps you make music and are exploring the possibility of entering the NFT world. Or, say you’re a collector, investor, or speculator trying to decide if buying music NFTs is the right investment move in 2022. Either way, it’s a fresh and exciting movement, but there are no guarantees you’ll make money.
So, if you are thinking about minting NFTs, you might be able to forge a more direct relationship with fans using blockchain technology, it isn’t free, as mentioned earlier. Fees to launch a project on a blockchain can really add up.
The same goes for buying a piece of NFT music, its costly, on top of that a resale of the piece will get you less price. Because when secondary transactions take place marketplace fees, Ethereum network gas fees, and any royalties the artist withholds play their roles in setting up a price.
While deciding which music NFTs might present the best collection value and how to go about starting your own music NFT project, bear in mind that historic works of art aren’t just valuable because of the creativity involved or the overall quality of the piece, they are unique. In the case of music in the modern era, rarity will also have value For example,e, a vintage vinyl record with very few copies made.
The music industry appears to be turning into a new frontier for the crypto industry. As artists started to experiment with NFTs and interact with their fan base in a new format and thereby re-structuring some personality into what has become an impersonal musician-fan relationship in the modern streaming era.
Buying music NFTs isn’t for every investor, so one must trade carefully here. Artists should weigh the benefits of their own NFT projects against the traditional means of distribution in music and create awareness.
Final Take on NFT music
Keeping Strict definitions and regulations aside, NFT music is helping composers, bands, and musical artists connect and interact with their listeners in new ways and get rewards for their creativity which is the most important aspect.
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NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.
Conduct thorough research before you start with NFT trading.