Around 13 years back, Satoshi Nakamoto took a sledgehammer to the conventional method of finance and introduced the world to something called ‘Bitcoin.’ Despite being neglected at the start, Bitcoin steadily rose in value and stature and is currently considered to be one of the most dependable and valuable true digital payment systems around.
Building on the cryptocurrency‘s great success, others have started trying their luck at it, introducing new systems that take the digital payments game to a whole new level. Today, we’ll take a look at the hottest cryptocurrency on the block — Non-Fungible Token or NFT — and tell you how it affects the world of music.
NFT: A quick intro
Before we get deeper into the subject, let us tell you what exactly NFT is. In simple terms, anything with a Non-Fungible Token guarantees that you’re the only person in the universe who has access to that unique item. For example, an artwork with an NFT means that it’s an authentic piece of art and can not be interchanged for anything else. Underneath NFT, there’s a nifty Blockchain at play, which keeps track of all the sales and purchases, making sure you always know who the current owner is.
We’ve already covered NFT down to the finest of details. So, be sure to check out the article to learn all about the latest cryptocurrency on the block.
Related: How to Mint NFT Art
What is NFT music?
As you’ve already seen, NFT is a cryptocurrency-authenticity certificate hybrid, which is great for anyone who can manage to tie their work with an NFT. Since NFTs are the most secure method of preserving authentication, artists can ensure their patrons that their hard-earned dollars are not spent getting generic stuff. NFT music is nothing but music — songs, albums, and more — sold with NFTs attached to them.
Related: What Does Non-Fungible Mean?
NFT Meaning in Music
As discussed in the previous section, some tech-savvy musicians are using NFTs to give their supporters a grand experience. The experience can range from front row tickets to personal memorabilia — all in all, an enriching, unique adventure. So, the next time you’re buying an NFT from an artist, rest assured that you’re buying a one-of-a-kind item from the artist.
Related: What are NFT Stocks?
NFT music marketplace
Before getting all excited about NFT music, you must first figure out where you need to go to get your hands on a unique asset. Since NFT is a rapidly evolving area, you could end up being bombarded by a plethora of spaces for NFT music. If you have no clue about what you’re doing and wish to have a firmer grip on the matter, try browsing Opensea.com. It’s pretty much the eBay of NFTs. There’s also Yellow Heart and Zora, both of which are pretty good at what they do.
However, if you’re really serious about buying NFTs, the best course of action is to keep a close eye on the Twitter handles of your favorite artists. If they decide to auction their art, Twitter is likely the place they’d announce.
To know more about NFT marketplaces, check out our dedicated NFT marketplace article.
NFT music crypto
The tern ‘NFT music crypto’ isn’t any different from your run-of-the-mill Non-Fungible Tokens. The three-word term here is specifically used to discuss NFTs used in the music industry.
NFT music industry
NFTs have stirred up quite a storm in the music industry since late 2020. With all shows canceled, musicians were desperate to earn more than the royalty fee from streaming services. And that’s exactly where Non-Fungible Token came into play.
In December 2020, Deadmau5 became the first big player in the industry to take the route of cryptocurrency. He auctioned a set of collectibles called “Rarez.” It didn’t include music, but there were some neat artworks, stickers, and more to play around with. Again, later that month, he sold off a single copy of “In Titan’s Light,” for a whopping $80,000.
Electronic label, Monstercat soon joined in, selling a collection soundtracked by signee Varien, for over half a million dollars. Linkin Park lead vocalist Mike Shinoda also made his mark, selling “One Hundredth Stream” — a 37-second audio clip — for $30,000. Shawn Mendes, too, sold a bunch of collectibles to reel in over $600,000. However, the pop star hasn’t yet sold his songs with NFT attached.
I just uploaded the #NFTs of the illustration from this morning’s @Twitch stream—1.) as a still image and 2.) as a time lapse clip on @ourZORA. Let’s see which one is more valuable / if someone decides to collect them both. Check them out here:https://t.co/nxirMUKdTL
— Mike Shinoda (@mikeshinoda) March 9, 2021
Dance duo, Disclosure, performed its new song, “N.F.T-N.R.G,” on Twitch and sold it immediately, with an NFT attached. This maneuver made them around $69,000. Famous Electronic producer, 3LAU, gained a whopping $11.6 million after selling 33 NFTs, celebrating the three-year anniversary of his album, “Ultraviolet.”
Finally, famous rockers, Kings of Leon, became the first big hitter to sell off an entire album as an NFT. They have already gained more than $2 million in sales and the number is set to keep soaring for the foreseeable future.
NFTs won’t solve the starvation artists have faced or are facing during the pandemic. However, it still does give them a fighting chance to survive, albeit with a steep learning curve.
Should you buy NFT music?
As the figures in the previous section suggest, having a song or album with an NFT tag attached can set you back hundreds and thousands of dollars. Since NFT music items are considered collectibles, they are currently being sold at a much-elevated price point. Additionally, some musicians are selling copies of their work with separate NFT tags. In theory, it does make each piece unique, but their value does take a hit in the real world. So, if you’re truly a collector and wish for your valuables to maintain their value or even increase it in the future, do try to buy pieces that are actually one of a kind and not just copies with NFT tags attached to them.
If you’re a musician trying to get into NFT, do allow your supporters to buy authentic, unique items from your inventory. Not only are they actually valuable for them, but they also allow you to have a stronger connection with your audience.