There is no lie, NFTs are emerging to be a big elephant in the room, even as relates to the music industry. Therefore, it is something that all music enthusiasts need to know about because it will eventually tremendously influence the nature of the music industry, and sure, it has.
The initials NFT stand for Non-Fungible Tokens.
Non-fungible means irreplaceable, one that you cannot equally exchange. This means that every NFT is unique. NFTs can literally be any digital thing you can think of, be it music, art, images, videos, or even tweets. All these are NFTs. For example, Twitter co-founder recently sold his first tweet as an NFT for around $3 million. Yes, he sold his tweet! When we are talking about the music industry, music is an NFT in itself. You can buy or sell this NFT.
If there is an NFT in the form of art for instance, why buy it? I mean, if it is easily accessible on the internet and you view it anytime you want, what is the point of buying the NFT (art)? Now, this is why; when you buy the image, you get ownership rights to the art. You now become the owner. And to many, this is more important than even getting to view the art. The fact that you can brag about owning a given popular art, or music is sometimes more refreshing and fulfilling than the NFT itself. You can also sell the NFT to another person at a higher price and so you are also able to get some financial profit from it.
However, there are some restrictions on whether you can get royalties that are generated by the music NFT you have just purchased. There are also questions on the type of ownership one gets after buying music NFT. Well, we discuss all these in finer detail in our podcasts, which you can find on our official website.
As a musician, if you are thinking about making out in the industry, you have to figure out a lot of things. From the production cost, signing up with a record label, looking for a marketing agency for your music, and so much more. You also have to work out a way of releasing your song to various music platforms. At the end of the day, the royalties that your music generates will be subjected to so many cuts and you will end up with very little.
Now, NFTs provide an alternative to that, by cutting off the middlemen. They provide a way in which you can sell your music as an NFT without going through the hustle. And you do it once! You do not have to wait for close to 5 years to fully gain from your music. NFTs also provide a system where when that music is sold to another person, you also get a percentage of that. So that you will keep earning every time your song is sold as an NFT to another person.
NFTs are still relatively new in the industry, therefore, it is a kind of risky enterprise. Here are some of the secrets you need to be aware of;
NFTs are created with the same programming used in creating other cryptos like bitcoins. However, The difference between NFTs and cryptos like Bitcoin, is that bitcoins are fungible while NFTs are not. For instance, one bitcoin is equal to another one bitcoin, just the same way one dollar is equal to another one dollar. Therefore, you can easily exchange a dollar for a dollar and still get the same value. However, for NFTs, each is unique.
To buy or sell an NFT, you will have to first create an account with any of the marketplaces you want to buy from or sell to. The following are some of the NFT marketplaces;
The market places we have listed above are some of the most popular. They may not be the best, and they may also have some setbacks. Therefore, it is always good to conduct your research before choosing any given marketplace.
In our podcasts, we look at the specific marketplaces and the most suitable ones for any music NFT enthusiast.
What are some of the questions that you have concerning music NFTs? Or NFTs in general? You can go ahead and ask them down below.
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