Music3 by MODA DAO
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Music3 by MODA DAO

Can NFT Music Hold More Value Than a PFP?

To say that music holds more value than a PFP is like saying the sun holds more value than a grain of sand. It’s all dependent on perspective. To one person, a PFP may be the most important thing in their life, while to another person music may hold that same level of importance.

But in terms of pure investment, there is a solid case to be made for music NFTs. In the past year, we’ve seen an explosion in the number of people collecting NFTs, and while the prices for these collectibles and assets have not gone through the roof in the way we’ve come to expect for successful PFP drops, they have the potential to hold their value well. Collectors as investors might be a new paradigm for music fans, but it’s one we have been prepared for by crowdfunding platforms such as Kickstarter for years.

Music has the ability to evoke emotions in a way that nothing else can; it can transport us to different times and places, make us feel happy or sad, and bring people together. It’s this emotional connection that makes music NFTs so valuable. Unlike a traditional asset like a PFP, which is primarily focused on financial gain and invented utility, music NFTs can offer collectors a much more personal and emotive driver.

The utility that music NFTs offer — even at their most basic — is also remarkable. The experience of the music itself, the provenance of its data and what it means in the context of an artist’s career, and the possibilities of access are all incredibly valuable. Music NFTS stored onchain can’t be replicated or counterfeited, lending credibility and authenticity to a collection, and preserving and protecting its value. Investment utility, where artists share a portion of the proceeds from resales with collectors, is already being built into some music NFTs.

Music NFTs have a variety of applications. They may be used to distribute discounted concert tickets, unique concert locations, or meetups with the artist, depending on how the artist wants to deploy them, and how they build them into their fan interaction strategy. These concepts will contribute to the value of individual projects, where the more innovative and well-executed the project, the more valuable the NFTs will be.

The experiential element of music can’t be ignored; it’s a core part of our culture, education, and entertainment, augmenting and enriching our lives in a way that no other medium can. Music as a foundational layer is a stronger value proposition than a PFP, simply because music itself, as a universal language, can meld more seamlessly into our lives.

This is still a very new space, and there are a variety of ways in which music NFTs might be used that have not yet been thought of. The key differentiator between PFPs and Music NFTs is that music comes with a cultural cache that PFPs can never hope to replicate. Music has been around for centuries, and its ability to move people is unmatched. Where most PFPs have an uphill battle to demonstrate their longevity, creators in the music space have an advantage; their content is their worth, and as long as they continue to produce and foster a career, it will always be in demand.

The emotional connection that audiences feel to a particular track, from a particular artist, will hold more strength than yet another cartoon avatar, and as the music industry continues to move towards a subscription-based model, the importance of music as ownable, tradable assets will only continue to grow.

It’s clear that music NFTs are something special, and with the right backing, they could become one of the most valuable asset classes in the world. While the value of music NFTs may not be immediately apparent, there is potential for them to become valuable investments in the long run.

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Joan Westenberg

Joan Westenberg

Chaotic good. Award winning creative director & writer, ft. in Wired, Inc, SF Chronicle, TNW. Founder thisisstudioself.com