How NFTs Could Revolutionize the Music Industry

Non-fungible tokens (NFTs) can appear relatively random to the untrained eye. So far, NFTs have been something you look at rather than listen to for the most part. But that could be changing. 

Music tokens are on the rise and could not just revolutionize how music is experienced and shared between people but how its economic value is stored and traded within the industry. 

Popular current tokens range from stone-faced bored apes to hyper-cutesy squishy squads and from classic art masterpieces to cartoon memorabilia like Stan Lee's autographed portrait. 

But thanks to big-name early adopters like the Kings of Leon, Shawn Mendes, and Ja Rule, who had success trading in on their vast audiences, smaller independent artists are moving in and building the ecosystem from the ground up. 

Artists Cash In

NFTs have the potential to reintroduce scarcity to the music market not seen since the days of CDs. This allows artists to profit by selling a finite number of NFTs to their superfans. 

For some artists, this additional revenue stream can make a big difference. Bajan rapper Haleek Maul reportedly made north of $200,000 in sales on Catalog – a music NFT marketplace – while his Spotify earnings for a whole year were just $178. 

Though Maul's tokens were incredibly lucrative, the five top-selling artists on Catalog made 7.5 times more annual revenue via the exchange than on Spotify. Of course, it probably helps that the platform doesn't take a percentage cut from sales. 

This isn't the only option for artists, though. Other platforms, like Sound.xy, specialize in music tokens, while OpenSea, the world's largest NFT marketplace by trading volume, has a dedicated catalog for music NFTs. 

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