The Case for Non-Fungible Tokens
Non-fungible tokens can be described as being a digital trading card that’s bought using cryptocurrency. The interest in non-fungible tokens has risen rapidly in recent years, and many music artists see new opportunities to make money and improve their careers. Famous brands such as the Kings of Leon are selling their albums with exclusive NFT’s that give fans perks such as merchandise.
Let’s look at how music artists can use non-fungible tokens to their advantage. We’ll also discuss some of the challenges the music industry faces using new technology.
Non-Fungible Tokens Music Artists
Music artists can take advantage of the sudden interest in NFT’s by selling in the online market. The emergence of NFT’s has been game-changing for many musicians as the technology which was launched during the pandemic allows them to continue to make a living.
NFTs, are limited-edition digital assets that are pinned either an image or piece of music. Consumers can buy NFTs from musicians and performing artists, which gives them bragging rights that they own a limited edition or one-of-a-kind work.
Musicians traditionally rely on touring and selling seats to earn an income. During the pandemic, many had to scrape by on meager royalties from streaming. NFT is based on the blockchain and gave music artists an additional way to make money.
The technology uses an unhackable digital spreadsheet that logs the ownership of digital assets. It also cuts out the middle man, which in the music industry are labels and agents who usually control distribution. How music is promoted has changed, given little-known musicians the chance to gain recognition and sales.
The Challenges
There are many challenges faced by music artists who are selling non-fungible tokens, including issues music artists face using new technology and copyright problems.
It’s also thought that NFT’s are just another fad, and while musicians may be able to make money, it may not be a sustainable income in the long run. The euphoria surrounding non-fungible tokens resemble other cryptocurrencies’ money-raising schemes such as Initial Coin Offerings. These tokens were hailed as the future of fundraising for charities, non-profits, and small businesses but were soon tracked down by federal regulators and the Justice Department, who began suing for fraud.
Many musicians and performing artists find NFT’s technology slow, clunky, and difficult to use. There are many issues that need to be improved upon before selling NFT’s becomes the mainstream in the music industry.
Critics have also pointed out that NFT’s don’t often live up to the hype. Only a limited number of artists are actually going to make a decent income with NFT’s as the market is becoming more and more saturated.
The introduction of NFTs has also changed how consumers think about art in the digital age of reproduction. Often it isn’t the art of music itself that’s valuable as files can be endlessly copied and manipulated. NFT’s may have copyright issues, and there are still some flaws in the way files are being created, bought, and sold.
Conclusion
Using NFTs in the music industry and to sell art has made people realize that an increasing amount of what we value globally is digital. NFT’s had given musicians and performing artists the opportunity to sell their work and make a living during the pandemic when they were unable to perform. It remains to be seen whether NFT’s are just another fad or whether they’re here to stay.
