What is NFT Music?
The proliferation of the world of Non-Fungible Tokens (NFTs) has grown beyond art, GIFs, video game items, virtual real estate, and collectibles to now include NFT music. Now musicians joining the fray are standing to make millions of dollars by selling digital versions of their art and music. When it comes to Non-Fungible Token music it falls under the domain of a rare collectible that is stored on a digital ledger. NFT music possesses lucrative opportunities for creatives to generate revenues as they help cut out middlemen such as record label companies through their sales as well as generate royalties for independent artists. NFT music offer artists and creatives an endless inventory of digital assets to sell and auction off to their fans.
What Exactly is NFT Music?
Music NFTs are the new frontier that has opened up for musicians and independent artists to make some serious dough. Simply put NFT music features a digital asset that incorporates a piece of music. It could include a tokenized version of a single song, an album, digital merchandise, an opportunity to meet artists, special tickets, or even a music video. The portfolio of NFT music will only depend on how the artist wants to structure and package the NFTs.
When compared to traditional digital music distribution NFTs offers unlimited opportunities. While music streaming platforms offer only licenses to listen to the paid tracks offering no ownership. Music NFTs unlike music streaming platforms offer buyers collective or sole ownership over that particular limited NFT file. NFT music by nature is unique and irreplaceable and is fast becoming highly sought-after collectibles. They empower musicians to create music NFTs themselves to auction off or sell directly to fans who pay using cryptocurrencies like Bitcoin, Ethereum, and others. This puts a lot of power back in the hands of artists who now have another way to monetize their art or other forms of digital merchandising without going through third parties or middlemen.
The NFT Music Industry in 2022
Ever since COVID-19 restrictions led to cancelations of live sports, concerts, and entertainment, non-fungible tokens (NFTs) have emerged as a means for fans to connect with their favorite artists and bands. NFT trading volume surged over $44.2 billion in 2021 and is continually breaking records and the NFT market cap is expected to reach $80 billion by 2025, with music NFTs standing to generate more revenues.
Music NFTs besides helping the music industry by bringing artists and fans closer are also helping bring artists additional revenues without the need for intermediaries. Artists too have taken notice Kings of Leon became the first band to release an album as NFT others including the likes of Snoop Dogg and Linkin Park’s Mike Shinoda have also gotten on board the NFT train.
Why You Should Create Your Own NFT Music
If you are musically inclined, creating you own NFT music can offer some benefits:
Create experiences for your fans: NFT music is a limited edition of your music and memorabilia. They have a high potential for fans to own these rare collectibles. In addition, you can use them to promote your upcoming album releases, offer unique experiences for fans, and even offer limited exclusive content.
The digital economy is the future: If you also want to be a part of this highly profitable and engaging marketplace, then today is the right time to take a step forward and invest in some digital merchandising.
Opportunity for generating more revenues: NFTs are the craze in the digital economy offering money-making opportunities when they get traded. Some NFTs have shown that their values can appreciate significantly over time.
Cut out the middlemen: NFTs offer you the unique opportunity to engage directly with buyers helping independent artists potentially earn 100% of the proceeds without the need to go through third parties such as streaming platforms.
Also, make sure to check out our article on how to create an NFT.
How to Turn Music into an NFT
Turning music into an NFT entails a process called minting. You can mint your NFT music through the following steps:
1. Select a digital asset: You will need to have an original piece of music art it may be an audio clip, video clip, 3D animation, GIFs, cover art or any other digital asset.
2. Get a Cryptocurrency Wallet: For you to start minting NFTs, you will need a place to mint and store them. They also are vital tools for buying, trading, and selling cryptocurrencies that are the mediums of exchanges for NFTs. Crypto wallets come in either as hardware or software.
3. Buy some cryptocurrency: You will need to buy some cryptocurrency to help you mint your NFT or convert your digital file into NFT music. Most NFT need gas which is a measure of the computational “fuel” needed for converting digital assets into NFTs.
4. Upload your NFT file to an NFT platform: Once you have converted your digital assets into NFTs you will be presented with the option to list them up for sale on the several available NFT marketplaces. You can use marketplaces like Ethereum blockchain, OpenSea, Rarible, or Axie Marketplace.
How do Music NFTs Make Money?
Music NFT creators can make money through the following:
Single Collectible: musicians can choose to create a single collectible that mints unique one-of-a-kind NFT.
Multiple Collectible: Musicians can release multiple copies of the same collectible.
Royalties: Creators can collect royalties from NFT when they are traded in a secondary market.
For more insights check out our previous article on how to make money with NFT.
Benefits of Buying and Selling in the NFT Music World
NFTs are causing a storm across the music industry by the simple fact that they cannot be replaced or traded for another identical thing they offer a niche market. As such NFTs artists, record labels, and investors, and fans alike stand to make some serious money by trading in NFTs.
Potential for lucrative revenues: Because the NFT market involves irreplaceable verifiable original digital items, it makes them much more valuable- just like collectible items in the real world.
Low production cost: NFTs can be made with relative ease and valuations are straightforward thanks to the existing NFT marketplaces that make it cheap to mint, sell, and bid for music NFTs.
Boost connections and engagement: NFTs are more than limited edition collectibles or pieces of art. They can be used by businesses to boost fan engagement, and create buzz for new projects by offering access to exclusive offers, and opportunities to earn rewards.
For more insights into NFT trading check out our articles on how to buy an NFT and how to sell an NFT.
Best Music NFT Marketplaces
There are several popular music NFT marketplaces that allow you to create your NFT game digital assets, mint, and trade in them, here are some of them:
Crypto is a platform that allows buyers and sellers to easily trade with collectibles including NFTs. With it, users can also browse and purchase curated NFTs that were previously dropped, as well as a variety of other NFTs created by users in its open marketplace. Besides offering ease of use for novices it accepts multiple payment methods, including debit and credit cards payment.
OpenSea’s blockchain helps users collect, sell and trade music NFTs. This blockchain technology allows users to also mint their own music NFTs, with each NFT limited to be minted for a maximum of five times. When it comes to accepting payment, it accepts more than 150 cryptocurrencies that including Ethereum, Solana, USDC, DAI, and many others.
Rarible is another popular music NFT marketplace. It offers a wide selection of music NFTs and offers support for multiple blockchains including Ethereum, Flow, Tezos, and Polygon. Besides offering free minting services and its royalty fees for creators can go as high as 10%.
Binance’s NFT marketplace lets users mint, buy, bid, and sell NFTs. Besides these users can trade in digital assets that include digital art, videos, website domains, and real-world objects. It comes with a large selection of music NFTs while offering low transaction fees. Payment methods available in this marketplace include credit cards, debit cards, cryptocurrencies, and bank transfers.
Mintable is a popular NFT marketplace for digital assets such as artwork, music, pictures, digital collectibles, and other in-game items. Through its gasless minting option users do not have to pay gas fees upfront to create their NFTs. This marketplace supports Ethereum, Immutable X, and Zilliqa blockchains.
Royal is an NFT marketplace that is created specifically for music NFTs. It helps users to own a piece of their favorite songs to earn royalties alongside the artist. With it, artists choose what percentage of the song’s royalties to put up for sale or even bundle fan experiences, special tracks, digital art, and more. Users can trade in NFT music through credit cards or cryptocurrencies.
NFT Music Vs. Art NFT
NFT music offers a certificate of digital ownership of a unique musical related work that can be sold to another party. The owner has the exclusive right to determine how the composition is used and can be in digital form such as a single song, an album, digital merchandise, an opportunity to meet artists, special tickets or even a music video. While NFT art which is basically electronic arts that could see NFT music as its subset which is mostly traded for personal collections and for speculation.
This article, “What is NFT Music?” was first published on Small Business Trends