Music has been a daily routine in some people’s lives since the 1950s.
Beginning with the spread of pop stars and the greatest artistic celebrities, music has witnessed continuous change over the past decades leading to a boom in the industry.
With the lack of record sales and the fact that only those with large followers can profit from the Internet, many music celebrities are frustrated because they do not receive satisfactory financial compensation for their efforts.
To the point that some of them say that music is not a sufficient profession to continue in life! There is a solution to this.
The solution lies in what NFT music tokens promise to look at this industry with a different eye, the way to reward artists for the art they create through blockchain-based systems, and the wealth these tokens will provide to artists with greater participation of those who love their art, thus changing the industry for the better.
What are music NFT tokens?
NFT refers to a non-fungible token as a digital certificate on the blockchain or Ethereum network.
It expresses unique ownership of assets, and the concept of non-fungibility is fundamental in economics, as it refers to uniqueness. Then these symbols are evaluated based on their uniqueness.
The music NFT token refers to a certificate that identifies the owner of the music work, and this certificate can be sold to anyone so that the musical composition can be used only by its owner.
The term also refers to all fungible tokens, meaning they are owned and controlled by many people.
It also means that there are multiple copies of it so that the owner of these tokens secured on the Blockchain network obtains the right to release a music clip, art album, video clip, or any exclusive content, so the person’s ownership of the music is important.
So these musical tokens help bands, composers and art makers connect with their listeners in a new way.
How do these tokens work?
The framework for these tokens is for sales or production. When a band decides to offer their work to fans in the form of audio files, merchandise, or concert tickets, the artwork maker chooses a blockchain network and then chooses a platform to make the NFT.
They then tell their fans what tokens they have created to be put up for auction and chosen according to the price.
These tokens cannot be repeated, as the audio file is only one time.
The highest bidder is the owner of the audio file but is not the owner of the copyright. Artists create a small number of tokens and then sell them on the music market, which is a new form of distribution instead of relying on companies.
Whoever buys the music becomes its owner by storing the tokens in a crypto wallet and selling them to bidders.
Those who cannot sell the token can make a profit from token sales, and this is one of the many ways in which music tokens empower musicians.
How do NFTs help musicians?
Musicians’ ways of making money have changed due to changing distribution and changes brought about by technology, but there are difficulties that artists face in maintaining and investing in their work.
In the 1950s, businessmen wrote credits to songs, and as sales increased in the 1960s, a few artists owned their recordings and dealt with publishers and music companies.
Since 1990, music sales have declined due to the presence of the streaming service, and many artists complained about receiving small financial rewards until some musicians stopped broadcasting because of this.
So Music NFTs can help them get creative and get more money.
These tokens bring many benefits, such as the revenue that artists get from creating tokens and selling them for a profit.
Or sell merchandise and music directly, eliminating the need for intermediaries such as record companies and advertising, in addition to increasing the fan base.
For example, airdrop allow these tokens to reach a large audience base.
An artist can be interviewed in person or virtually, or their elements can be shared with the audience.
There is also a unique opportunity for new creators to enter the world of music or obtain a deal by uploading their content to a platform of their choice and then marketing their art.
How to invest in Music NFT
If you are a fan of crypto, investing in these music tokens can bring profit in addition to the change that will occur in the world of the music industry by supporting many artists.
Music distributors receive 50% or more of the revenue from music distribution deals, and artists receive a small royalty.
These tokens can take care of artists’ future revenues or allow beginners in art to get the profit they want.
There are 3 ways to invest in these musical tokens:
- NFT Markets
- collections
- Token money
As for token mining, it is done through a strong relationship with fans through blockchain technology.
However, there are mining fees and upon sale, the resale proceeds are reduced by Ethereum network gas fees, market fees, and artist royalties.
The music of the collection should be subjective because musical tokens express rarity and this may result in great value for the art being released.
There are a large number of projects related to these tokens, which indicate ownership of digital copies of music and owners of artistic works. The projects are not rare items that can be done by many people.
The most successful of these projects focus on supplying tokens and not just relying on fan demand for this art, representing a great opportunity for crypto enthusiasts.
1. NFT Marketplaces
NFT marketplaces are gaining popularity in the crypto industry and although music tokens are new to these markets, they are causing a stir in the music industry.
Coinbase announced its NFT marketplace in 2021. The OpenSea marketplace has a market cap of $3 billion, and Visa is also interested in NFTs.
There are many other markets, such as tokens in the music industry.
The OpenSea marketplace remains the king of these markets, with many crypto exchanges looking to meet the needs of this market.
2. NFT Collections
The collection is a new token as a new way to support artists to help their careers. Creating a collection helps the new artist in the future and whoever owns the collection is also rewarded.
Investing in a particular market or cryptocurrency is like buying shares in a company, so buying music is like buying art, and the opportunities increase as collections are created.
Famous examples of successful project launches include pop stars Doja Cat and Snoop Dogg in 2021, where the musicians collaborated with digital content creators to release collections that were the most successful of the year and inspired many to learn more about the world of digital assets.
3. Funds
The funds are linked to the choice of a manager to invest the assets in non-fungible tokens. For example, one of the owners of the CryptoPunks game tokens launched a special fund to invest on behalf of users, which was welcomed by them.
The advantages of this fund include the reduced risks associated with starting a set of NFT tokens, and it also allows the use of tokens from the most popular sets, such as the Bored Ape set, as collateral. The fund also contains an index of popular non-fungible token sets.
Top 3 Music NFT Marketplaces
Choosing a marketplace can seem like a daunting task given the limited number of music marketplaces, so many companies are contributing to launching platforms that cater to users’ needs.
There are three most popular music marketplaces in the NFT world.
1- NFT TONE
The marketplace focuses on music and collecting rare tracks to make them available to users such as the first releases of recordings.
The marketplace allows owning the token of your favorite artist and the platform issues its native token TONE which operates on the Binance Chain.
2- Opulous
The marketplace aims to engage fans with artists. Whoever buys owns a share of the music copyright through NFT tokens and receives monthly royalties under these NFT tokens, in addition to the possibility that these tokens become more valuable as the artist becomes more professional.
3- Royal
The marketplace sells song rights in the form of music tokens such as the original song by rapper Nas to encourage users to support the artistic careers of artists who become more professional in the music industry over time.
Are NFTs disrupting the music industry?
There is an unfair distribution in the music industry, so uniqueness is one of the advantages of NFTs.
These NFT tokens are attractive because of their multiple uses, which may attract more artists and fans, especially as the industry flourishes.
Music is a form of art so these NFT tokens will be able to visualize what culture looks like. They are not just token but an attempt to understand popular culture if you are an investor.
