The recent market collapse has affected all aspects of cryptocurrency, and non-fungible tokens are no exception. The floor price of the majority of NFT collections has decreased by almost 80% during the past few months. Many investors are confused. What if all the hype surrounding NFT was just a fad based on pure speculation? Worse, several industry reports say that wash trading was a big reason why the NFT sector grew so quickly the year before.
Even so, musicians are coming up with new and interesting ways to use non-fungible tokens. Let’s look at three of these: revenue rights sharing, digital tickets and VIP access, and charity NFTs.
Sharing Revenues
When an investor buys an artist’s NFT, they may also get rights to the income generated from their music. This is the concept that can be implemented by tokenizing revenue rights. This business model greatly benefits independent artists. They can receive money in advance
to cover production and marketing expenditures while keeping ownership of their work. Users are contributing money to musicians they believe have a chance of success, hoping to partake in their success.
Announced in May, Alan Walker’s “Unity” campaign became a breakthrough in the music industry, raising $25,000 in just a few days. Walker’s song is forecast to reach its declared streaming goal years earlier than expected. The success led to the start of a second, even bigger campaign for DJ’s latest Origins EP. To expand on this crowdfunding model, musicians can use “fan missions.” The idea is that users will be able to get rewards for completing different tasks. For example, they could share songs on their social media or fund multiple campaigns by the same artist.
To summarize, sharing revenue rights will give investors a reason to keep their assets and wait because the value of the rights will increase as the artist’s popularity grows.
Fan Clubs and Tokenized Tickets
Using NFTs as digital tickets or passes that provide their users with special privileges is another idea that is picking up steam. The
partnership between FTX and Coachella, which led to the production of the Coachella Collectibles collection, is a notable illustration of this. The Swedish Way Out West (WOW) Festival is also working on…
