One of the hottest online trends of the past year has been the meteoric rise in the popularity of non-fungible tokens, commonly called NFTs. They are digital files that can be songs, videos, artwork, writing, or any other type of art, and they are the exclusive property of the person who purchases them. Each NFT contains within itself a complete record of ownership, like the providence that would come with a classical painting that is used to verify that it is authentic.
NFTs are generally purchased using Ethereum or other forms of cryptocurrency, which (like all currencies) are subject to price fluctuations over time. To check the current price of Ethereum and other crypto, please visit okx.com. They can be purchased through various online marketplaces, both accessible via traditional web browsers or through smartphone apps. But how can this help the music industry?
One of the biggest issues for musicians for decades has been the studio system. Elvis Presley was famously passed up by Monarch Record executives who didn’t think he’d be a successful artist. John Fogerty was sued by a former record label for plagiarism and spent a lot of time and money defending himself against charges that were eventually thrown out. Meat Loaf, Taylor Swift, and many other artists have run into issues with record labels over the years, a problem that is bypassed completely when artists are given the opportunity to release their own work.
Another major benefit of artists’ self-releasing albums is that it strengthens the relationship between artists and consumers. Music fans can purchase an NFT album and know that, instead of getting 25% or less of each sale like they would under the studio system, a much greater percentage of the albums’ profits will go directly to their favorite musicians. Artists can also release a limited number of albums, giving buyers a chance at exclusivity.
In March of 2021, the band Kings of Leon released their new album, called When You See Yourself, as an NFT, which was widely seen as the start of the new revolution in the music industry. The album was sold in three tiers, with various rewards being attached to each one, allowing customers to purchase the album at the price point that was right for them. They also specifically only minted 20,000 copies of the album, giving it scarcity and therefore increasing its value.
Since then, many other artists, such as The Gorillaz, Tory Lanez, and Grimes, among many others, have also issued albums as non-fungible tokens. In addition to music, Grimes has also released several pieces of art as NFTs, and in total, she has received over $10 million in sales, which is significantly more than she would have received selling in traditional marketplaces.
In summary, the NFT revolution is and will continue to take the music world by storm because it allows artists greater freedoms, more money, and the ability to strengthen their relationship with their fans. It also allows consumers to directly support the artists they love and enjoy the feeling of exclusivity.