5 Ways NFTs Are Changing How We Experience Art and Music.
An explanation revealing the value and opportunity found in Non-Fungible Tokens, the growing appeal for artists, and a basic guide for NFTs in the Music Industry.
NFT Specialist | Music Producer
Published November 7, 2021
1. The NFT Music Can Be Highly Appealing for Your Fans
There are a few aspects of NFTs that make them highly valuable for musicians. The first is financial: NFTs have been selling at extremely high prices. Superstar artists, like Kings of Leon, Tory Lanez and Steve Aoki, have sold NFTs for millions of dollars in 2021. Since then, artists of all levels of fame and success have been jumping onto the trend left and right. The artist Young and Sick had only 27,000 followers on Instagram when he sold an NFT for $865,000.
2. NFTs are a Win-Win
The second is the good that comes to both parties. Every NFT sold is potentially a two-way benefit for the artist and the consumer (fan) because while the buyer has made an investment in a growing musician that has a chance to be worth more in the future, the artist has also made a profit in the interaction. Side note: the artist will also benefit from any future transactions that take place as the original NFT owner collecting up to 15% royalty on every resale.
3. Freedom and Value For Fans
The difference between a Spotify stream and an NFT is the tremendous power of true ownership and rights to all the contents of the NFT.
“When You Have an NFT That Gives You Partial or Full Ownership of a Piece of Music / Art, You Are Able to Influence the Way That Other People Experience the Artwork.”
In other words, you’ll find that the creative freedom given to the buyer of your NFT is a huge incentive for the owner. This could be the means by which labels get rights to songs in the future, or anyone interested in being a distributor of your music.
4. Ease of Offering and Royalties
Where would you be able to sell your NFT’s? The go-to platform is OpenSea for most artists. It’s intuitive, easy to browse, and is the most secure and engaging marketplace. While creating an automated crypto payment system, hiring a developer, minting each NFT on the blockchain, and including a written smart contract (aka code) and all that jazz aren’t extremely difficult, why not post an NFT on a platform where they do that all for you? The catch is that most marketplaces take a cut. Luckily for you, Opensea takes a modest 2.5% which leaves plenty of room for you to make your share.
Indeed, because of the royalties that NFT trades generate, musicians can theoretically use NFTs to build a steady stream of income. Anyone who creates a non-fungible token will receive the initial windfall of money when it is sold for the first time. However, NFTs can also be created giving 5-20% payoffs to you each time they change hands.
5. How easy is it to move the NFT to other platforms?
You don’t need to. You'll notice that the NFTs you see on a marketplace like Rarible, are also available to buy OpenSea. This is because they all read from the blockchain, and when you buy an NFT you are buying from the crypto wallet of whoever owns it. So even if platforms disappear, a company goes under, locating the smart contract of an NFT on the blockchain will be easy due to the fact that tokens and contracts will always be in the ledger. This is also how each NFT is encrypted and verified as an original for collectors.
Tags: blockchain crypto nft music podcasts