Non-fungible tokens (NFTs) became popular in 2021 and have
exploded in the first quarter of 2022. NFTs have been developed for
a wide range of items such as digital art, events, luxury goods an
now music. in 2021, NFTs value hit $25 billion.
The music industry has been hit hard by the pandemic and streaming
has been criticised for not paying artists enough, with 90% of
streaming revenue only going to the top 1% of artists. NFT’s ensure
that an artist is fairly compensated for their work.
Kings of Leon became the first band to release an album as an NFT.
Purchase of the tokens unlocked limited edition vinyl and front row
seats to their concerts.
Record labels and the Grammy’s are also branching out into the NFT
market, with Universal creating a digital band called KINGSHIP,
whose members are from existing NFT group Bored Ape Yacht Club.
Musicians are seeing the value in crypto currency because NFT
collectors see the value in their art. This has led to independent
musicians selling their music exclusively as NFTs, making more
money than they ever would being signed to a label and relying on
touring, streaming and merchandise.
While NFTs will likely never replace the streaming giants, the
Blockchain holds a wealthy and dedicated fanbase that the music
industry is beginning to exploit. As artists and labels begin to
generate thousands in profit from musical NFTs, crypto currency
could be the pot of gold the industry needs to return value back to
music.
By Liam Chessell
