Embracing the Future of Music NFTs
In todays's music industry, independent artists face numerous challenges. Record deals, constant touring, and industry cosigns have long been the traditional pathways to success. These routes often come with limitations, leaving many talented artists struggling to break through and earn a sustainable income. But what if there was a way for artists to chart their own path to success? What if they could bypass the gatekeepers and gain financial independence while connecting directly with their fans?
This is where Music NFTs enter the scene, offering a novel solution to the problems faced by artists in the traditional music industry. These unique cryptographic tokens (NFTs), recorded on the blockchain, link to digital or physical assets, providing proof of ownership. In the case of music NFTs, they are linked to musical creations. A music NFT can represent a single song, an entire album, a music video, or even a generative piece of music created using computer algorithms. It opens up a world of possibilities for artists to monetize their creations directly, without relying on record labels or streaming platforms.
Let’s do a small case example using Haleek Maul to demonstrate exactly how this works. Bajan rapper Haleek Maul made $226,800 in music NFT sales on Catalog, while his annualized Spotify earnings are just $178. When asked about the figures in the tweet, Maul confirmed to CoinDesk that he’s made 81 ETH from five Catalog sales, which at the time was worth more than $250,000.
Today, he has carved out a unique niche for himself within the NFT ecosystem by selling a laundry list of impressive releases via curated music NFT platforms like Catalog and Sound. What’s more, his endeavors have won him financial security, newfound community, a TIME Magazine feature, and inspired others to become involved in the music side of NFTs.
The story of Haleek is only one of the multiple success stories in Music NFT space. Therefore, we’re confident to believe that web3 technology can change the music industry for better.
Anotherblock Tackling The Key Challenges
Stockholm-based music NFT platform, anotherblock, has recently secured €4 million in a seed funding round, positioning itself for global expansion. The fresh influx of capital will allow the company to court new artists, broaden its offerings, and provide fans with more choices in the evolving world of non-fungible tokens (NFTs).
We participated in Anotherblock’s €4 million seed round which was led by Stride.VC, specifically Partner Gabbi Cahane, with Swedish producer Axwell and Swedish House Mafia participating in the round. Previous investors include Inventures, J12 Ventures, Swedish House Mafia member Steve Angello, and Dune Analytics co-founder and CEO Fredrik Haga.
As an music NFT platform, anotherblock offers something far more relatable to the masses — the potential to earn royalties. While a 100% return on investment is not guaranteed, there is undoubtedly room for growth. Making money from an investment like the one anotherblock offers depends on several factors, including the artist’s popularity and the timing of the investment.
Having already secured deals with renowned artists such as The Weeknd, Rihanna, Martin Garrix, Alan Walker, Offset, and R3HAB, anotherblock aims to widen its reach and enable broader participation beyond the crypto-savvy audience. According to anotherblock’s co-founder and CEO, Michel D. Traore, the goal is to engage an even wider audience, particularly those outside the crypto space, and facilitate more creators in the process. By leveraging the blockchain ecosystem, the company seeks to combine music rights with technology, creating endless possibilities.
Our investment decision to support anotherblock alongside our esteemed investment partners was driven by the tremendous potential we see in the platform and its vision for the future of music NFTs. We were captivated by anotherblock’s unique approach to empowering artists and fans through shared ownership and royalties, as well as its commitment to democratizing the music industry. The team behind anotherblock demonstrated a deep understanding of the market dynamics and a clear passion for revolutionizing music ownership. We were impressed by their track record, having already secured deals with renowned artists and established partnerships within the industry. Joining forces with other investors allowed us to pool our expertise and resources to propel anotherblock’s growth, ensuring that it can reach a wider audience and achieve its ambitious goals. We firmly believe in the transformative potential of anotherblock and are excited to be part of its journey in shaping the future of music NFTs.
In Summary
Anotherblock’s successful seed funding round and its vision for the future of music NFTs exemplify the industry’s ongoing evolution. By bridging the gap between artists, fans, and technology, anotherblock aims to empower creators, democratize music ownership, and revolutionize the way we engage with music. With its impressive track record, strategic partnerships, and commitment to providing a platform for artists and fans to share in the benefits of ownership, anotherblock is well-positioned to shape the future of the music industry. As we embrace the potential of NFTs in the music world, anotherblock stands at the forefront, poised to transform the landscape and unlock new possibilities for artists and music enthusiasts worldwide.
Founderheads is a boutique web3 incubator, accelerator and VC we help great entrepreneurs thrive in the cryptocurrency industry, bringing a positive impact to the web3 revolution. You can find us on Twitter or Linkedin.
