• NFTs are a game changer for independent artists and musicians

  • This revolution will not be televised – it will be minted. Earlier this year, we saw the meteoric rise of non-fungible tokens (or NFTs) in the mainstream media and pop culture. We’ve all heard about them, but is the hype real? Top businessmen and media moguls, like Mark Cuban and Gary Vee, are still heavily advocating the use of NFTs and the role smart contracts will play in the near future, while new NFT exchanges and placements continue to roll out every week.Jay-Z’s Twitter profile picture is an NFT CryptoPunk.

    Buzz or not, one of the most powerful and overlooked impacts of NFTs is on the music industry.NFTs have the ability to change the game for independent artists by providing them with a new way to earn income (while connecting with fans), and that change is long overdue.

    Music and musicians

    There are several aspects of NFTs that make them highly attractive to musicians. First is the financial aspect. nfts have been selling at extremely high prices. Superstar artists, such as Kings of Leon and Steve Aoki, have been selling NFTs for millions of dollars. even lesser-known artists, such as Vérité and Zack Fox, have made tens of thousands of dollars from the sale of NFTs. Artist Young and Sick only had 27,000 followers on Instagram when he sold an NFT for $865,000.

    These numbers are incredible, especially when you compare them to the payout rates of streaming platforms. Streaming platforms have been one of the main sources of revenue for musicians in the digital age, and became even more important during last year’s COVID-19 pandemic when revenue from live shows dried up. However, the payout rate for these platforms is still not very high. This has been a hot topic since they were created.Spotify pays about $0.003 to $0.005 per stream on average. That equates to about $3,000 to $5,000 for 1 million streams, but 1 million is a big number for independent artists.

    In 2020, only 13,400 artists will earn more than $50,000 a year on Spotify (the median wage for U.S. workers). With these stats, you can see how NFTs are starting to look like a real opportunity – sell a song or a collection and you can make more from a single sale than you could from a streaming platform in your entire career.NFTs can also provide recurring income. They can be coded so that the original creator receives between 2.5% and 10% of the sale each time the token is resold. This is a good idea indeed.

    NFTs for musicians

    Another value of NFTs for musicians is their “unlocking” feature – basically, creators can add additional perks to their NFT contracts. This includes one-on-one video calls with fans, shout-outs or physical products, or even giving away partial ownership of a song. This last scenario is unique because artists can now treat songs as equity investments – they can create an NFT and give away 30% ownership of a song. This gives those who put up the money the opportunity to get a tangible return on their investment, while the artist gets money in their pocket. It’s like a version of a much more rewarding crowdfunding site.

    Even in India, NFTs and cryptocurrencies are growing in popularity. Currently, more than 15 million people in India hold about $6.6 billion worth of cryptocurrencies. Visual artists in India have started jumping into the NFT meta-space by selling 2D and 3D artwork. Back in May, a South Indian musician sold one of his demos of NFT for $200,000 (Rs. 15 million) – which is crazy. There is still a lot to explore in the NFT space, but the potential is there.The high value and unique reward system that NFTs offer is a revolutionary opportunity for musicians.

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