What is truly interesting about the NFTs is that they came to revolutionize the world of music, giving artists total freedom over their productions.
Not surprisingly, the NFT — Non Fungible Token Development — took off impressively during the pandemic, especially in the world of music.
If we consider that the vast majority of artists have income thanks to live shows, and that for a year and a half there was absolutely nothing anywhere in the world, it was only logical that an Internet industry, such as NFTs, take off.
Suddenly we began to see news that 3LAU had sold a series of collectibles for the third anniversary of their album ‘Ultraviolet’ with the auction of 33 NFT of the LP, with access to unreleased music, for more than $ 11.6 million dollars.
That’s when we all started to raise our ears… is it possible to sell music and visual arts for such large amounts? The answer is yes, through Etherium — a cryptocurrency.
What is really interesting about the NFTs is that they came to revolutionize the world of music, giving artists total freedom over their productions and of course, their prices without the intercession of third parties such as distributors, record labels or event promoters.
To better understand this new trend in the world of music, here we will answer several questions that you could be asking yourself:
What exactly are NFTs?
As I said before it means “Non-Fungible Token” Basically they are unique and collectible digital elements. What is offered here is something that is unique and irreplaceable, such as a painting or a work of art, so is music.
What is it like to have an NFT in the world of music?
It is having something that no one else is going to have, at least not identical. It can be an unreleased song, the animated video of a specific song, a digital collector’s LP; And many times they have built-in features that can include things like digital data files, publishing contracts, publicity rights, and so on.
Best of all, they are indestructible files, since the data is stored on the Ethereum Blockchain, through smart contracts. They are also verifiable, which means that historical ownership data can be traced back to the original creator.
How are artists benefiting from this?
First of all, because you can charge exorbitant amounts of money for your work. Another way is that you put a clause where every time they “resell” this NFT you take a commission.
Why would anyone want to buy music from NFT? What benefit could collecting things related to music have?
From the outset it is a very good way to support your favorite artist. Also, if you are lucky enough to buy something like a song that becomes a worldwide hit, you could resell it and literally make millions for it.
What are the most important cases of NFT that have been in the world of electronic music?
First the 3LAU that I already mentioned above, which gave him earnings of $ 11.6 million dollars. Jacques Greene auctioned off the publishing rights to his track Promise ‘, as NFT; He sold it for 7 ETH — the equivalent of $ 256,705.01 pesos. Disclosure created a song from scratch live on Twitch and then auctioned it off as NFT. NFT Token generator Grimes sold a series of digital artworks, including pictures and short videos with music, for about $ 6 million.
Not bad right? Although I think how famous you are also has a lot to do with it. Either way, it’s a much more profitable way for musicians to make a profit on their artwork. The NFTs have grown so much that there are even specific pages for electronic music collectors. There are labels, artists and much more in specific genres. Such is the case with RCDSHP.
Is there something wrong with NFTs?
Some people do not have much faith in cryptocurrencies and think that it can be a bubble where very few benefit. Furthermore, eliminating third parties and making a direct deal between artist and consumer may have a detrimental impact on the industry; especially for people who make a profit from being “intermediaries”. But just as we went from discs to streaming services, we are now experiencing a transition to NFTs. This is how we have adapted from format to format. And this will not be the exception, because it does not replace anything and the world and music must continue to evolve.
