At the beginning of this year, we have witnessed a huge graph of both increasing and decreasing of non-fungible tokens or which are commonly known as NFTs, in the mainstream popular culture and media. We have all heard about that hype, but was that real? Let us look at the NFT opportunities that can be employed by those who are interested in the use of cryptocurrencies.
Without or with buzz, one of the most robust and overlooked NFT opportunities is in the music industry. NFTs can alter the game for all the independent music artists by creating a new way to earn, and such changes have been overdue for a long time.
There are many dimensions of NFTs that make them highly favorable for musicians. The first among them is financial: NFTs are always sold at a very high price. Superstar musicians like Steve Aoki and Kings of Leon have sold their NFTs for millions of dollars. This is not the case with only the superstar artists, even lesser-known artists like Zack Fox and Vérité have made tens of thousands of dollars from just NFTs.
These values are incredible, especially when compared with the rates of payout of the streaming channels. For musicians, one of the main sources of revenue was the streaming channels in the digital era, and it expanded during the pandemic outbreak in 2020 when the revenues from the live shows dried up. However, the rate of payouts offered by these platforms is still not so high and has been a hot topic since they were created. The payout of Spotify is approximately $0.003 to $0.005 for every stream. That is equal to nearly $3,000 to $5,000 for 1 million streams, but attaining 1 million followers is a huge number for any independent artist.
In the previous year, there were just 13,400 artists who generated over $50,000 of the yearly revenue of Spotify. With these statistics, you can well understand that the NFT opportunities are real — sell a collectible or song, and you can make way more money with one sale than you could from the streaming channels in your entire life. The NFTs can be coded so that the creator receives between 2.5% to 10% of a sale every time someone resale the token.
In the case of musicians, the other value of the non fungible tokens is their feature of “unblockable.” Basically, the creators of that music piece can insert additional perks inside the contract of an NFT. These NFTs can range from one-to-one video calling with a fan or even giving out partial ownership of a song. The last case mentioned is unique as now songs can be treated as equity investments by the artists, where they can formulate an NFT and give away 30% ownership of a song. This offers those contributing money an opportunity to receive an actual return on their investment which the artist receives money. This is similar to a money-rewarding version of a crowdfunding site.
Even in countries like India, digital currencies and NFTs are gaining popularity. Presently more than 15 million people in India have holdings of digital currencies worth $6.6 billion. Visual artists residing in India have initiated to make the move to NFT metaverse by selling 3D and 2D art pieces. Here is an NFT example, in May 2021, a South Indian musician sold a non fungible token of a demo song of his for $200,000. So if you are wondering how to create an NFT, be assured that creating an NFT is no big deal.
There are still many NFT opportunities that are yet to be explored in the NFT space, but the potential of the same can be witnessed now only, in fact, in this article itself. The unique reward and high-value system that is being provided by the non fungible tokens is surely a revolutionary opportunity for all the independent musicians, one that is definitely recommended to check out. The revolution will be mined, not televised.
1. What can you do with an NFT?
NFT meaning: NFTs are a portion of the Ethereum blockchain. So they are individual tokens that have extra data stored in them. That extra data is the crucial part, which enables them to take the form of music, art, video, and many more in the form of MP3s, JPGs, videos, GIFs, etc.
2. Can you make money creating NFT?
Without or with buzz, one of the most robust and overlooked NFT opportunities is in the music industry. NFTs can alter the game for all the independent artists by creating a new way to earn, and such changes have been overdue for a long time.
3. Why would anyone buy an NFT?
There are many dimensions of NFTs that make them highly favorable for musicians. The first among them is financial: NFTs are always sold at a very high price.