How NFT Sales Are Making Artists Thousands
Lotus Train; w/ music by deadmau5. and visuals by Mad Dog Jones sold 148 copies, grossing $103,452
You might’ve heard the term ‘NFT’ being thrown around lately, and that’s because they could change the face of music merchandise as we know it.
What are NFTs?
Non-fungible tokens, or NFTs are unique digital assets. These tokens commonly come in the form of rare or limited edition images, videos and audio recordings. Because NFTs are sold on the blockchain, each one contains specific information that distinguishes it from other tokens. The information includes data like ownership history, which allows NFTs to be verifiable and impossible to mimic.
Some handy examples of NFTs include this Daft Punk digital art and deadmau5’s collectible cards.
Why they matter to musicians.
It’s no secret that digital content has become more important than ever for artists. Lately, we’ve been discussing digital content in the context of social media and fan engagement and conversion, but with the rise of NFTs, and their entry into the music merchandise economy, unique digital content appears to be becoming more and more valuable. There’s certainly a market driven by the scarcity of particular NFTs. The attraction of owning rare, verifiable products is a major selling point, particularly for those tokens that are one of a kind.
The majority of NFTs are sold by auction on sites like Superrare, Nifty Gateway and Block Party, which puts the power of pricing into the hands of fans and investors. That’s allowed artists like deadmau5 to sell a 30-second audio-reactive artwork for $49,277 USD. Producer Jacques Greene completed another notable transaction, selling the NFT for his song ‘Promise’, alongside its publishing rights for $23,000 USD. Muse’s collaboration with Cryptokitty saw 1099 limited edition cards sold at $19USD each, and another 199 sold at $90USD each.
If there's one thing these numbers prove, it’s that buyers are really invested in getting their hands on these unique collectibles. With NFTs' recent rise in popularity, a legitimate and sustainable new form of merchandise is arising, bringing with it new opportunities for artists to generate profits. With the challenges posed by the COVID-19 pandemic, we’re excited to see any profitable opportunities arise for musicians.
Related Articles
Last week, The Weeknd unveiled latest release ‘Dawn FM’ - a concept album that explores a state of purgatory, through a fictitious radio station.