The latest explosion of the tech world and, more specifically, cryptocurrency and NFT, has taken over the world. From virtual reality yachts getting sold for millions of dollars to spending a whopping $91.8 million (yes, you did read this correctly) on “The Merge”, the most expensive NFT sold so far, we are only entering the new digital era.
In addition to the music trends we’ve written about before, looking at the Google Trends data, the interest in NFTs has massively increased during the last year. This trend has excellent potential to continue its growth as we are shifting more and more into the digital world.
Famous artists like Grimes and Kings of Leon are big names that entered the music NFT game early on. Moreover, music NFTs gained massive popularity in Electronic Music Producers such as Steve Aoki, 3LAU, Dillon Francis, Illmind, and many more.
This article will mainly focus on where to buy music NFTs, what their value is, and why you should invest in one or more!
What is music NFT, and why are they valuable?
The easiest way to explain what a music NFTs is is to think of it as digital ownership of online (music) art. In other words, it gives you proof of ownership that you own the beat or the audio file.
One of the most valuable aspects of NFTs is the rarity. Music NFTs can be compared to “limited edition” items.
Take super rare trading cards, for instance: Although they are rarely unique in any way, they exist in a limited quantity, making their value skyrocket. It’s a similar story with normal and music NFTs - in most cases, only one or a couple of tokens are released, which increases its value so highly.
As we’ve previously discussed why it is essential to reward your loyal customers, NFTs can do exactly that too. Their real value comes from opportunities they provide for artists to reward their superfans with exclusive, one-of-a-kind experiences and opportunities for copyright owners to have all of their IP ownership tracked by these tokens and potentially earn revenue each time they are resold.
Where to buy music NFT
Before getting into where to buy music NFT, let me explain some of the steps behind it. If choosing option number one, you will need a crypto wallet like Metamask. This wallet supports digital assets and tokens only on the Ethereum ecosystem. Coinbase wallet, on the other hand, hosts a variety of blockchain assets such as Bitcoin, Ethereum, XRP, Dogecoin, Litecoin, etc.
Then you will need to exchange USD or EUR for cryptocurrency. The most popular one for exchanging NFTs is Ethereum.
As soon as you’ve done that, you will have to choose a marketplace where to buy your music NFT from. There are several platforms such as Opensea, Rarible, Mintable, etc. For this case, we will look into how to buy music NFT through Opensea.
Firstly, you’ll have to explore the listing to find an NFT that you would like to purchase. After that, review the details, such as price history, for example, so you can make sure that the NFT in question is worth buying. Also, make sure that you’ve checked for red flags of common NFT scams.
Further, you need to click on “Buy Now’’ to review your purchase before you’re navigated to the checkout page. The final cost that will be added to this process is an applicable “gas fee”. After, click on “Confirm” to finalize your purchase. As soon as you have completed the transaction, you can see the NFT in your wallet by going back to your profile page and selecting “In-Wallet”. Congratulations, now you are supporting your favorite creator, and both of you are growing together!
Don’t know how to use crypto wallets, or do you simply not feel comfortable doing so? That’s completely fine! We will review the platform Royal.io in this second scenario of showcasing how and where to buy music NFT.
What’s excellent about Royal is that artists choose what % of their song’s royalties go up for sale. In addition to that, they can bundle fan experiences, unique tracks, digital art - everything is all up to them. When purchasing the streaming royalties, it is in “tokens”, directly from the artists. Any of the previously mentioned extra benefits will be attached to this token.
As soon as you’ve purchased a token, you can claim royalties for the song after they had accrued. The payout time varies depending on the artist himself.
What’s also really cool is that you can put up your token for sale. Then, if someone buys your token, they automatically get all the royalties and the additional benefits that come with it.
For example, you can check out the American rapper, songwriter, and entrepreneur Nas’ collection.
Other huge platforms offer similar services to Royal are Sound Records, where artists managed to earn more than $660 000, Beta Catalogs, where fans have paid the artists more than $2 million on the platform; and OurSong, founded by John Legend.
Why you should buy music NFT
Next to supporting your favorite artist and having digital ownership of a piece from your most-liked creator, music NFTs hold much more extra value behind them. When buying music NFT, it comes with a “royalty-free guarantee,” which also includes a contract that allows you to use the audio files for your own purpose as the owner of this NFT.
Take, for instance, the music producer Guy J who put up for sale the rights to royalty earning from one of his songs. The owner of this NFT would get 50% rights to the song’s earnings in perpetuity. This sale was completed for 40 ETH com. This is a prime example of believing in and supporting artists. We can look at it as investing in people too.
NFTs don’t work much differently in terms of, let’s say, reputation. If you are a new upcoming artist that wants to make it to the digital world, you’ll first have to work on your brand awareness and building up your reputation. In other words, you’ll have to make a name for yourself by promotion. Though, if you spot such an artist early on and invest in his NFTs, this could be profitable for you because of the artist you invested in and helped him develop.
It is essential to consider your options where to buy music NFT. It depends on what crypto wallet you use if your desired NFT is in the same ecosystem as your cryptocurrency and which market/platform offers what NFTs. Ultimately, it all comes down to your favorite artists, doing your own research, and investing in projects and people that you believe in.
To finish off, let’s not forget the most common misconception of NFTs - it’s not screwing the music labels; it’s helping the artists! Empowering the creators has always been the vision of Fangage, and music NFTs have the same goal. Who knows, maybe in the future we will see similar features at Fangage.