Trying to understand cryptocurrency and non-fungible tokens (NFTs) can be boring AF, but the amount of money generated and spent in the crypto space cannot be ignored. Artists and musicians have independently earned millions of dollars selling digital versions of their art, music, music videos, photos, and just about any other type of digital media they can think of launching. on the blockchain.
In February, DJ and music producer 3LAU made $ 11.6 million selling music NFTs in just 24 hours. A few days later, Canadian musician Grimes won $ 5.8 million in 20 minutes. DJ Steve Aoki made $ 4.2 million in the first week of March, while Post Malone auctioned off an NFT to play a beer bong against him. These types of paydays would normally have taken artists years to collect, but NFTs have created a new model for artists to reach consumers by avoiding the middleman in distribution.
In the music world, an NFT could be defined as a rare collector’s item that is stored on a digital ledger. Artists and musicians can create NFTs themselves to auction various forms of digital media to their fans who pay using cryptocurrencies like Bitcoin, Ethereum, and others. They could add multiple buyers to the NFT or make it so that there is only one owner. The artist can also receive royalties whenever a buyer of that digital copy sells it to someone else. This gives a lot of power back to artists who now have another way to monetize their art or other forms of digital commodity.
NFTs could have a huge effect on streaming platforms that just aren’t earning enough artists. We could see an era where artists can do business directly with music retailers and sell their NFTs like they did with self-produced CDs. Keite Young of Medicine Man Revival says this is just the beginning of cryptocurrency and the concept of blockchain technology being used in the creative space.
Young says he plans to release an NFT within the next 90 days, in a series called End of the Tunnel.
“It’s a series of performances that are put together in a facility,” Young says. “It’s happening in different places and it’s not open to the public.”
Fans will be able to purchase a digital copy of the installation as an NFT. (Digital works sold as NFT can still be copied and shared on their own, but ownership of a token is unique. Think of it as a copy of a popular book autographed by the author; there are many copies of the book and more can easily be made, but the NFT version is one of a kind.)
Young says his company Culture Factory has worked to help others build their own NFT platforms. Young says Culture Factory wants to be “the gatekeeper” to the Web 3.0 experience. He says he has the time, skills and knowledge to engage the NFT community and develop go-to-market strategies consistent with the community’s values.
“NFTs will give artists another outlet to create exclusive content for fans in a more artistic way. In the future, we will see the value of songs appreciate, like Basquiat’s paintings. – Dallas rapper Rakim-Al Jabbaar
John Patillo, CEO of Southwest Digital, a Houston-based music distribution company, said they would add an NFT component to their platform. He raises the fact that artists such as Snoop Dogg and Post Malone sell 6-7 figures of digital assets and believes artists in the southern hip-hop market can experience similar financial success.
“We treat our distribution layout almost like a Walmart or an Amazon in a digital space,” says Patillo. “For example, we have NFTs from Nipsey Hussle, DJ Screw and NFTs from some of the iconic guys here in the South. And not only are we going to let them live on our NFT platform or our collection showcase, but we are also going to create these NFT collection galleries. ”
It will be a physical place for fans to go to view the digital assets, leading up to the final auction countdown. Patillo says his company is educating artists on how they can navigate this new digital space of cryptocurrency, NFTs, and blockchain technology.
Not every artist will make $ 5 million in 20 minutes, but independent artists might find creative ways to use NFTs to connect more directly with fans and advance their careers. It only takes one super fan to completely change the situation of an artist. If someone thinks digital ownership of your next project or behind-the-scenes experience is worth $ 20,000-50,000, then let them buy it. Instead of just posting it to YouTube or Spotify for a percentage of what the artist might think their work is worth, they could see a significant paycheck as people find greater value in digital assets.
As the NFT wave gains momentum, we’ll see more creative ways for artists to capitalize on NFTs.
Dallas rapper Rakim-Al Jabbaar says NFT will change the rap game forever and he’s working on a special NFT release with his next album.
“NFTs will give artists another outlet to create exclusive content for fans in a more artistic way,” Al-Jabbaar said. “In the future, we’ll see the value of songs being appreciated, like Basquiat’s paintings. ”