Music NFTs are generating more buzz on the internet right now. In the past week alone, there have been 2.2k searches on ‘Music NFTs’.
The rise in NFT use cases is still being explored. And the music industry is exploring too.
In this article, we’ll be answering a few questions, they are:
- What are Music NFTs?
- Why do they choose the Algorand Blockchain?
- How many music NFT projects do we have on the Algorand blockchain?
- Are there other music NFT projects?
- How do I buy Music NFTs?
- How do I make a profit off Music NFTs?
Okay, let’s get right into it.
Music NFTs: What Are They?
To explain Music NFTs, you have to understand NFTs first.
Music NFTs allow users to own immutable parts of their favorite artist’s song or complete tracks/albums from their favorite artist.
They are loved by users and artists for different reasons but the three most popular ones are because:
- They eliminate middlemen.
- Users can now buy music NFTs and earn royalties alongside their favorite artists.
- Artists can raise funds from the sale of their music as NFTs or even borrow from a pool using their music copyrights as collateral.
Why Do Music Projects Choose The Algorand Blockchain?
The Algorand blockchain is suitable for music projects in many ways. Quick brief:
- Algorand is carbon-negative.
- It can handle 1200 tps
- Its average completion time for transactions is 5 seconds.
- Unlike other blockchains, it uses pure proof-of-stake and is completely decentralized.
- It is relatively cheap compared to other blockchains
- It is Unforkable which means that data cannot be manipulated and would be retained in its original state.
These are good enough reasons to build on the Algorand blockchain. There’s also the supportive Algorand community and its recent partnership with FIFA.
Building on Algorand allows projects to be privy to Algorand benefits and opportunities.
How Many Music NFT Projects Do We Have On The Algorand Blockchain?
According to Algorand’s ecosystem data, 9 music projects are building on their infrastructure(at the time of writing).
We have Opulous, Stoi, Board, Svansy Coin, Loozr, Magma, Soundmart, Xfinite, and Crescendo.
Except for Stoi, every one of them is building an NFT project, NFT marketplace, or a metaverse. We’ll be looking at six of them quickly.
Six Music NFT Projects To Watch Out For On Algorand.
- Allows users to invest in the music of their favorite artists (e.g Tyga and SuperDuperKyle)
- Allows artists to borrow DeFi loans using copyrights as collateral
Opulous is building three products: a music NFT launchpad, DeFi Ecosystem, and an Exchange for music NFTs.
The purpose of the launchpad is to help artists access up-front funding through the sale of their music NFT. Generative artwork NFTs could also accompany S-NFT campaigns. S-NFTs is Opulous term for Music NFTs.
Generative NFTs provide users with special benefits like VIP fan experiences, signed artist merch, etc.
The DeFi ecosystem being built by Opulous provides two staking pools with separate passive income mechanisms for users and artists.
The first is the OPUL Staking Pool and the second is the Music loans pool.
Opulous exchange for its music NFT is a platform to allow anyone to invest in music and also a place where users can buy or sell their S-NFTs.
- Responsible for the AlgoCelebrity NFTs.
- Allows staking on AlgoStake and Tinyman.
Board is a Brand Algorand Standard Asset (ASA) with a specific focus on the world of entertainment, lifestyle, technology, and music.
Board is not only concerned about music but other entertainment because it believes that the blockchain would change how users consume content.
- Created by OrganizovanýXaoc to develop experimental artistic, economic, and cryptographic work.
- Uses multiple mediums like music, AV, graphics, tokenomics, and arbitrage game mechanics.
They intend to make music and art profitable, as well as incorruptible using inside and outside censorship.
They are building a decentralized platform where users can buy Music NFTs called fNFTs and get rewards.
The profit made from fNFTs are split among contributing artists and the Svansy label.
- This is a cross-chain token available on Algorand, Stellar, and Cardano blockchains.
- Users pay with it to stream music in the MAGMA metaverse, called Lairiah(The Verse).
MAGMA was first minted on Algorand, MAGMA on all other blockchains are being tethered or wrapped to the value of MAGMA on ALGO.
You can buy MAGMA on Algofi, Tinyman, or Pactfi. Staking options are also available on AlgoDoggo.
- Built Mzaalo; a play-to-earn Video on demand platform offering premium content across 12,000+ movies, music, originals, and live TV to millions of users.
- Building the Mzaalo NFT marketplace where users can collect their favorite moments.
Xfinite allows users to monetize their time and engagement into rewards, through their decentralized entertainment platform.
Users can redeem earned tokens across 600+ established brands, merchandise, digital goods, games, and celebrity experiences.
The ecosystem is powered by the Xfinite Entertainment native token (XET) built on the Algorand blockchain.
XET can be traded on centralized and decentralized exchanges including BitMart, MEXC, Tinyman, and Algofi, or staked on Yieldy.
- First Algorand marketplace for freelance creators.
- Allows potential creators to sell their creative services, NFTs, and MP3s using Crescendo as an escrow.
Crescendo also plans to reward creators by commissioning them to design their NFTs, offering them free front-page placement, and more.
Users patronize these creators using Algo or CRSD (Crescendo’s token).
Are There Other Music NFT Projects?
Yes, there are other music NFT projects. You can check Coinmarketcap. The total market capitalization of music tokens is $359,539,563 at the time of writing.
The majority of music projects listed are still new.
You can do your own research before deciding whether to invest.
How Do I Buy Music NFTs On Algorand?
To buy music NFTs on Algorand, you have to first buy the tokens of the music project you want to invest in.
You can do this by swapping your Algo tokens for them on Tinyman e.g. swap Algo for Opul tokens.
Next, you might have to stake a number of your tokens in an approved pool. For example, you stake Opul on Pactfi or Algofi on the Algorand blockchain.
These stakes qualify you to earn rewards in your desired music token of choice, in this case, Opul.
They also qualify you to buy Music NFTs released by the project, usually before anyone else.
How Do I Make A Profit Off Music Nfts?
One of the perks of having a Music NFT is that you earn royalties and loyalty rewards.
The more the song is streamed or played, the more rewards you earn for owning a part of the song.
Music projects are also building marketplaces where users can trade their Music NFTs.
If you hold, you earn every time the song is played. If you sell, you get crypto assets. Almost like a win-win.
Conclusion
A vital skill required in Fundamental Analysis is to see the potential of crypto trends before anyone else. Be sure to do your research before buying Music NFTs.
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LinkedIn: Onyeka Ekwemozor
