For today’s big idea, we’re going to deep dive into Music NFTs.
We will discuss what they are, how to get started/interact with music NFTs and finally, how you can potentially profit from music NFTs!
Music NFTs Guide
Polygon’s Big Development
Latest on Lightning Network
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⏰ Top Headlines
🎵 An Introduction to Music NFTs
At their core Music NFTs are digital collectables often in the form of collectable audio files which allow for a greater connection between artists and their fans. A key difference is their ability to build a stronger monetisation model to cut out profit-seeking middlemen like record labels to capture a greater share of their worth.
But why are we so interested?
1️⃣ Real-world utility
Some of the biggest names in music such as Kings of Leon, Wu-Tang Clan and Nas have had some sort of involvement with music NFTs. Kings of Leon’s NFT drop provided multiple different tiers with the lowest providing exclusive artwork and the most expensive known as a ‘Golden Ticket’. Each of these tickets guarantees the owner four front-row seats to one show of every Kings of Leon headline tour for life! With the cheapest currently listed on OpenSea for 333 ETH.
2️⃣ Fixing something that is broken
Spotify only pays between $0.003 and $0.005 for each stream played and many record labels pay even less. Subsequently, artists only make around 12% of the revenue that they create from the music industry. A tweet by @LucaLush shows the power of NFTs as they state a 1/1 NFT of their song sold for 0.45 ETH ($1734.40) which is equal to 2.5 million streams on a major label. Probably nothing, right anon? Wrong… this is massively bullish for Music NFTs because it brings power back to the creator no matter their size. Fans follow creators so it is only a matter of time before more artists adopt this kind of model bringing more eyes and more money to the space.
How you can get started with Music NFTs
Music NFTs are still very early, but having strong conviction early almost always pays off in the long run. Right now most Music NFTs are a work of art so should be treated as collectables and not investments. This means you should only invest what you can afford to lose and with no expectation of future returns!
Some good places to get started:
Catalog - A specialised marketplace for 1-of-1 NFT music releases.
Sound.xyz - A new music NFT platform for creators to release limited time drops. Secondary sales can be found on popular NFT marketplaces like OpenSea, Rarible, and others.
Beat Foundry - A new platform for on-chain generative music.
Popular CT account @Cooopahtroopa has curated a concise landscape of the current Music NFT landscape. We recommend that you check it out here to immerse yourself in the space.
How you can profit from Music NFTs
NFT Marketplaces. There are already many big players with NFT marketplaces. Music NFT specific marketplaces such as Royal allows artists to create a greater connection with fans as well as trade art.
NFT Collections. You can start an NFT collection by NFTs from artists you support or believe will explode in popularity over time.
NFT Funds. You can look to NFT-indexes such as the Bitwise NFT index fund for more risk-averse exposure to the space.
There will be ups and downs in terms of valuations as right now most Music NFTs are collectables and not investments. However as we have discussed in this article, there is real use case and utility being built in this space. The legacy music collecting industry is estimated to be worth around $5 billion and entering the crypto sphere should only enhance this.
💵 Polygon Puts Money Where Their Mouth Is
Polygon (MATIC) has raised $450 million in private investor capital. Sequoia Capital India led the fundraising alongside more than 40 other investors. According to Dune Analytics, unique Ethereum wallets holding Matic tokens have surpassed 350,000.
Polygon has recently committed to investing in ZK-rollup products and announced two related acquisitions worth $650 million.
Polygon plans to use the newly raised funds to grow its ecosystem and onboard its next billion users.
They plan to allocate $100m to its ecosystem fund and $10m each to various scaling products.
Polygon is putting their money where their mouth is by investing heavily into the ecosystem.
The team at Polygon are also leading the way in terms of culture. Their co-founders have recently removed their titles as CEO and COO on LinkedIn. They stated that the project is decentralized so has no need for C-level positions.
⚡ Lightning Strikes
Even when dinosaurs roamed the Earth, the phenomenon of lightning already existed. And so it appears to be poetry in motion that the dino Lightning Network, founded in 2015, is lighting up the scene with its latest news.
Lightning Network is a Layer 2 protocol on top of a blockchain network that enables fast transactions. It was originally touted as the solution to Bitcoin scalability.
It works similarly to Visa and Mastercard, which verify immediately and settle later, and with mass adoption could rival these payment giants.
Strike, which launched in 2020, is a payment app that uses the Lightning Network. It is available in 200 countries and has a partnership with Bittrex exchange.
The founder of Strike, Jack Maller, was also involved in El Salvador’s move to make Bitcoin legal tender, with Strike one of the wallets endorsed by the government.
Read our various NFT guides to make sure you’re up-to-speed:
Listen to our podcast with Seedphrase, a crypto and NFT investor who has reached a net worth of $100m. Link here.
Tomorrow we will use the power of Nansen On-Chain Analytics to teach you how to profit in the crypto markets. Everyone should be aware of the use cases of On-Chain metrics.
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