NFT (Non-Fungible Token) is designed to represent the ownership of digital arts.
Like cryptocurrencies, it is based on Blockchain technology, but the significant difference between crypto and NFT is that crypto is fungible.
For example, if one can buy or sell a cryptocurrency like bitcoin for another coin, they will get the same value back, whereas NFTs are non-fungible; it is unique, if anyone exchanges it for another NFT of the same kind then they will not get the same thing, there may be loss or profit in that case.
- How can artists use NFT?
- How much are artists gaining by NFT sales?
How can artists use NFT?
Musicians can use NFT in many ways, resulting in a considerable amount of profit for them. Some of the nft ideas for musicians are included in the methods below be creative with it.
Selling digital copy
Musicians can make a digital copy of their creations and sell them as NFT. For example, if a musician sells the NFT of their album for 1$ each. He decides to make only 500 copies of such NFT, and when they are available for selling, he holds 10 of such NFTs with him. Due to such a smaller number, there can be a massive demand for it, resulting in a tremendous increase in values, and with a price increase, musicians can get even more profit. You could take help from an SEO agency for better positioning of your digital copy and music video marketing.
Saving on payments
There are many occasions when musicians have to work with clients from different countries or collaborate with musicians from another country. When it comes to receiving money, exchanging currencies can lead to many difficulties, and using apps like PayPal can reduce your profit as they charge a lot on every transaction. Using NFTs in these scenarios can help a lot; musicians will save by escaping the charges, but they can also earn even more when they sell the NFT when the prices hike.
In the music industry, there are a lot of middlemen. When a Fan buys a music album or purchases a subscription for a music streaming platform to hear the artist’s song, some money goes to the musician. A majority of the amount goes to the production company or streaming platform. Similarly, some of the money goes to the production and some to the artist for a concert. Musicians can avoid these middlemen with the help of NFT. The transactions are straight transfers between the participants as a primary asset to the crypto exchange. The artist receives the money; the fan gets the content in their digital wallet.
Behind the scenes Videos
There is a great demand for backstage videos of the artist. Many die-heart fans are willing to get these videos at any cost. Musicians can record the behind-the-scenes video for a concert or album and sell it as an NFT. These NFTs can result in huge income for the musicians.
Gain for both musician and fan
This is one of the important reasons why NFTs are gaining popularity. Prices for each NFT rise drastically due to the demand and supply gap. There is a Limited number of NFT, and the demand for it rises day by day. The buyer of that NFT can sell this for even more price, thus making a profit.
How much are artists gaining by NFT sales?
NFTs sales made a total revenue of at least $25 million in the past month alone. Here are some of the recent NFTs that the musicians sold.
Linkin Park’s Michael Kenji Shinoda has raised $30,000 by an NFT auction this February.
YouTuber and musician PelleK released his first NFT music album that sold out at pre-sale in less than two hours for $160,000 on February 22.
Grimes auctioned off nearly $6m worth of digital artwork via Nifty, a popular NFT sales channel.
3LAU, Justin Blau, a musician, and producer, sold an NFT collection for $11.6 million via an online auction. His management company, YMU, said they are planning more NFT auctions for other artists on its roster.
DJ superstar Steve Aoki sold an NFT of his art collection for $4.2m this march. This selling of NFT also included the transaction of $888,888. The NFT was sold to the former head of T- Mobile, US, John Legere.
Latin star Ozuna has also made more than $456,000 from an NFT auction in 15 minutes.
Kings Of Leon sold their earned new album “When you see yourself” as an NFT through blockchain platform YellowHeart and has earned $2 million.
Another artist to collaborate with blockchain company Bondly recently was an independent rapper and producer Tory Lanez, who last Thursday (March 4) released three previously unreleased tracks as NFTs via auction. Lady of Neptune, Distance, and YDLR tracks generated more than $400,000 in initial gross sales and resales from over 300 fans.
Other artists to launch NFT auctions this month include Shawn Mendes, Post Malone, and Deadmau5.
Last month on a podcast, Tory Lanez, a Canadian rapper, told that one of his albums was sold as the NFT. He revealed that the sale was so fast that he could not buy any NFT of his creation. Further, he also told about the possibility that the backstage videos are on-demand. The artist can sell them as an NFT. If there is a fan who is rich and is willing to own the digital copy of the musician, then the musician can earn millions within minutes.
NFTs are gaining popularity day by day. The future of the music industry is going to change drastically due to this. The creators will earn more and more. NFTs have gained the users’ trust considerably, and the main reason behind it is that it is secure and decentralized.
The NFT would gain more trust and popularity in the future. The impact of this change would be huge because of NFT. Not only the musicians but also the fans would earn a tremendous amount of money. We should accept that the music industry is in its early stage with NFTs this should be allowed to evolve with time to make a revolutionary change in the music industry in the future.