Non-fungible tokens, or NFTs, have experienced massive popularity in 2021, so it’s unlikely that you haven’t heard of them until now. There have been different factors that led to the explosive growth of this incredible technology, with cryptocurrencies like Bitcoin and Ethereum playing a massive role in it.
Historically, the bitcoin price chart has shown both an upward and a downward trend, but there’s no doubt that Bitcoin has attracted the attention of many. As a result, technologies like NFTs have also raised interest, especially among artists.
In the music industry, NFTs emerged as a game changer, opening the door to new opportunities for independent artists. NFTs allow musicians to tap into a broader audience and make their songs go viral. Besides, it will enable them to monetize their work more easily by connecting to fans directly.
Unfortunately, many issues plague the music industry. For instance, obtaining funding is incredibly challenging for artists, and most of the time, they depend on their record labels to get revenue. Moreover, the protection of IPR is also difficult, as artists are vulnerable to plagiarism. Fortunately, NFTs address such problems, offering musicians a way to protect their intellectual property rights while also reclaiming their independence and keeping ownership of their content.
From Steve Aoki to Shawn Mendes: Musicians Who Have Launched NFT Projects
The world’s famous musicians didn’t miss the chance to capitalize on the opportunities that NFTs provide. Steve Aoki ( who probably doesn’t even need an introduction at this point) has launched different successful NFT projects, such as Dominion X, a collection that sold out in seven seconds. Aoki mentioned in an interview that he believes in NFTs because they offer musicians a different way to engage with their audience – one that is incredibly powerful. The DJ said NFTs made him more money than he had ever succeeded in making since he became famous – that’s impressive and clearly shows the potential that NFTs have.
But he is not the only musician who embraced NFTs. Shawn Mendes, the Canadian pop singer who had a massive success with his song, Stitches, collaborated with Genies to launch his own NFT collection inspired by Wonder, his most popular album. The musician also launched digital wearables, such as vests, necklaces, earrings, and a guitar, which earned him over $600,000. Mendes already made enough money through his hits, but NFTs offered him an additional income stream.
The Chainsmokers, Eminem, and Snoop Dogg also tapped into the potential of NFT – even Whitney Houston’s step-sister put to sale an unreleased demo of the soul singer, making $1 million from it. The proceeds were further donated to the foundation created by Houston in 1989.
Unlocking incredible opportunities with NFTs
Selling NFTs has made famous musicians millions of dollars, but here’s a fact that will surprise you: lesser-known artists also saw tremendous success thanks to non-fungible tokens. For instance, artist Young & Sick, who is by no means as famous as Shawn, succeeded in selling an NFT for $865,000, which is quite impressive. In other words, NFTs are accessible to everyone, and they can help musicians thrive in the industry, no matter how popular they currently are.
In 2020 and 2021, the music industry suffered tremendously due to the COVID-19 pandemic, showing musicians how fragile their careers can be. As they started to look for ways to connect with their audiences, they discovered the power of NFTs. The truth is that it’s always wise not to rely on a singular income source because you never know when the world could go through other challenging times. Besides, NFTs offer numerous advantages, and it makes sense to embrace them.
No middleman
Unfortunately, the music industry involves many intermediaries. Due to this reason, the musician receives only a tiny portion of the money that fans spend on an album or merchandise – the rest goes to the record label. The same thing happens when fans buy concert tickets, with record labels also getting a significant part of the profit.
This is a massive disadvantage for musicians, but fortunately, NFTs eliminate mediators, meaning that it’s the musician who receives the entire payment. This is because NFT transactions are made between participants and recipients directly, without anyone else being involved in the process.
Stronger connections with fans
Perhaps one of the greatest advantages of NFTs is that they allow musicians to connect with fans on a deeper level. This is because by holding a token, fans become part of the creative process of the artist. They get access to experiences and content that other users don’t have access to.
Besides, fans also get to show support for their favorite musicians by purchasing NFTs, thus giving them a necessary boost. Through NFTs, fans and musicians bond like never before.
Unlockable features
NFTs include an unlockable feature, which can be anything from tangible goods, a one-to-one chat with a fan, or giving away a portion of song rights. The latter, in particular, can be incredibly beneficial to musicians because it turns songs into equity investments.
So, it’s not only musicians that get more money but those who also give their money could see a significant ROI – it’s an attractive win-win.
With these advantages in mind, it only makes sense to embrace NFTs! Now, obviously, there are downsides – for example, the legal responsibilities involved, as it’s essential to be careful when creating and distributing tokens. Besides, emerging artists may find it challenging to attract interested fans, but other musicians have made it big, so why wouldn’t you, too? It’s only a matter of perseverance and using the right approach.
The Bottom Line
Undoubtedly, NFTs present an alluring opportunity for musicians, allowing them to connect with fans and be rewarded effectively for their creations. If you want to tap into this transformative space, it’s essential to take the time to understand how NFTs work and research future trends.
Non-fungible tokens indeed offer a promising avenue, and they will help you create a financial support base that meets your personal needs. In the coming years, the landscape of NFTs will likely evolve further, so you should keep an eye on them and use them to our advantage.
