October 4, 2022

The Current State of Music NFTs

NFTS are Shaking Up the Music Industry

NFTS are Shaking Up the Music Industry

There was a time when all you could purchase with non-fungible tokens (NFTs) were those mopey monkeys that people inexplicitly bought for ridiculous amounts of money. Today, NFTs can do so much more than buy Bored Apes – especially for the music industry.

As you probably know, an NFT is a digital asset that represents real-world objects, such as art, in-game items, and music. Like other types of cryptocurrency (crypto), NFTs are bought and sold online through a digital database that creates a permanent, transparent record of the transaction. An NFT functions somewhat like a zip file with artwork on the front and nifty assets, such as music, tickets or videos, on the inside.

NFTs are still in their infancy, but their potential is becoming clear. Some of music’s heaviest hitters, such as Linkin Park’s Mike Shinoda and Kings of Leon, have already adopted NFT technology to reach more fans. The musician known as Grimes launched an NFT campaign that combined artwork and videos set to music, and she raked in a cool $6 million – which is the equivalent of a couple of billion Spotify streams. These fat stacks allow artists to compete with record labels while retaining ownership of their masters and their work.

New Opportunities for Partnerships

NFTs also create opportunities for collaboration. Intercept Music recently partnered with Method Man to create a new platform for independent labels and music artists, intending to create a digital distribution platform that empowers both artists and labels by giving them access to hundreds of digital stores and major streaming outlets. Intercept Music has partnerships with some of the biggest music marketplaces and distribution services, including Nifter.

These collaborations may be a lifesaver for artists, who suffer from a broken music industry that splits profits between the big dogs and leaves the musicians with pennies on the dollar. NFTs offer a more sustainable and equitable model for artists by creating a system that gives musicians more control over their work, and in the end, puts more money in their pockets.

NFTs Enhance the Connection between Creators and Fans

NFTs also work out for the fans, in that they create an opportunity for artists to connect with their base in a more personal (and profitable) way. Users often have a passive relationship with music – they listen to their favorite songs without any interaction with the artists that created them. Until NFTs came along, the only way for fans to gain greater ownership of their relationship with the artists was to buy VIP tickets with meet-and-greet or to purchase merchandise.

NFTs foster a more dynamic relationship by giving listeners an opportunity to engage and participate with the artist in ways that go well beyond the merch table. Fans can purchase limited edition or one-of-a-kind albums, buy physical or digital merchandise, or even interact with their favorite artists online.

But what about the “crypto winter?”

Bitcoin and other types of cryptocurrency have recently experienced a downturn, dubbed by many as “crypto winter.” Prices dropped and remained low, creating a bear market that has chilled interest in NFTs for some investors. Crypto winter has not frozen out many big players, though.

“I feel like every great industry has a downfall,” said Snoop Dogg when asked if he was concerned about the current crypto crash, for example. “There’s been a depression in every industry you can look at: alcohol, tobacco, clothing, food; every industry you can imagine.”

The music mogul isn’t alone. Billionaire Mark Cuban compared the crypto crash to the lull the internet experienced when the dotcom bubble burst. Cuban even went so far as to say that the NFT space was oversaturated with wanna-be investors, and that cyber winter weeded out all the people who weren’t supposed to be there. Snoop, Cuban and other NFT enthusiasts are still hot for the digital currency.

How do you make an NFT?

Making an NFT is easier than you probably realize. The first step, of course, is to find out as much you can so that you go into the venture wisely. Learn about gas fees, for example, which is the fee you pay to execute any transaction on the blockchain. The more you know before you dive in, the more successful your NFT venture will likely be.

Pick an asset

You can turn almost any digital file into an NFT, as long as you are the sole owner and nobody else has intellectual property rights.

  • Music
  • Video clips
  • Pictures
  • Artwork, such as drawings or paintings
  • Tweets and other online content
  • GIFs and memes

Start simple with an audio clip, video, or image, as these are the most commonly accepted formats in various marketplaces.

Choose a blockchain

A blockchain is a type of public ledger that records transactions made in bitcoin or other types of cryptocurrency. Ethereum and Solana are the top blockchains choices for NFT creators.

Choose a marketplace

Marketplaces are the online platforms in which users store, display, buy, sell, trade, and mint NFTs. NIFTER, Nifty Gateway, OpenSea and Rarible are among the most popular marketplaces.

Set up a digital wallet and add cryptocurrency

You’ll store your cryptocurrency in your digital wallet. MetaMask, Coinbase Wallet, and Alpha Wallet are among the most popular. Be sure to choose a digital wallet accepted by your marketplace of choice.

Upload your file

Upload and create a file that contains your NFT. Once you gain experience in uploading your NFTs, you can mint (publish) them directly on the blockchain. Newbies should use the minting tools provided by their marketplace. Connect your digital wallet to the marketplace to establish a payment system. Once your digital wallet is connected, the marketplace will publish your NFT. Your marketplace will assign unique metadata to your asset and record it on the blockchain. If you’d like, you can create extra value for your NFT by adding a smart contract that lays out the terms and conditions of the transaction.

Next, sit back and rake in the money. You can list your NFT at a fixed price or sell it auction-style to the highest bidder. While many NFTs never sell or earn very little money, it is entirely possibly that you will be the next music NFT to rise above and find success.

ABOUT FRANK MAGLIOCHETTI

Frank Magliochetti owes his professional success to his expertise in two areas: medicine and finance. After obtaining a BS in pharmacy from Northeastern University, he stayed on to enroll in the Masters of Toxicology program. He later specialized in corporate finance, receiving an MBA from The Sawyer School of Business at Suffolk University. His educational background includes completion of the Advanced Management Program at Harvard Business School and the General Management Program at Stanford Business School. Frank Magliochetti has held senior positions at Baxter International, Kontron Instruments, Haemonetics Corporation, and Sandoz. Since 2000, he has been a managing partner at Parcae Capital, where he focuses on financial restructuring and interim management services for companies in the healthcare, media, and alternative energy industries. Last year, he was appointed chairman of the board at Grace Health Technology, a company providing an enterprise solution for the laboratory environment.

Frank is the CEO of ClickStream, ClickStream’s business operations are focused on the development and implementation of apps that disrupt such as WinQuik™, a free to play synchronized mobile app and digital gaming platform. The platform is designed to enable WinQuik™ users to have fun, interact and compete against each other in order to win real money and prizes. Twitter at @ClickstreamC  @WinQuikAppNifter™, a music NFT marketplace that allows recording artists to create and sell limited edition authenticated NFTs, and their ever expanding foreign language exchange social learning app  @HeyPalApp. ClickStream is also entering the E-Learning market with Joey’s Animal Kingdom- please visit them online at wowee.world

Frank was appointed Chairman and Chief Executive Officer at Designer Genomics International, Inc. The Company has accumulated a growing body of evidence that highlights a link between alterations in the immune and inflammatory systems and the development of chronic human disease. The Company is visionary and has established itself as a leader in the field of inflammatory and immune genetic DNA and RNA biomarkers that play a causative role in debilitating conditions, such as atherosclerosis/heart disease, diabetes, arthritis, inflammatory bowel disease, post-traumatic stress disorders (PTSD) and cancer.
A proprietary state-of-the art data mining bioinformatics program, called ‘cluster analysis’ will be used to measure disease development susceptibility with potential for earlier diagnosis and intervention. The company is developing a healthcare program based on its proprietary genetic panels that will allow people to be their own healthcare advocate and take an active role in their health status as well as longevity.
Frank is a highly sought after multifaceted senior C level executive.

What is The Potential Future of NFT’s?

NFTs have had a meteoric (and somewhat crazy) rise in popularity since they first appeared in 2014. While they are smoking hot right now, many wonder if NFTs will continue to sizzle or if they will eventually fizzle.

An NFT is a digital object, which is a bit computer code and data that conveys ownership of something online or real. NFT can convey ownership of an online video or graphic, for example, or a painting, seat at a concert, or actual real estate. In fact, a San Francisco entrepreneur is attempting to auction off apartment leases as NFTs. NFTs can also be hybrid of the two – NFTs might represent the sale of physical concert tickets and the download of the artist’s album, for instance.

NFTs have become an increasingly popular way to buy and sell digital artwork. The artist Grimes recently sold nearly $6 million in digital art – in less than 20 minutes. The YouTube video, Charlie Bit My Finger, sold for $760,999. Even established names in the art world are getting in on the action. Christie’s recently auctioned a work by digital artist Mike Winkelmann, also known as Beeple, for more than $69.3 million.

NFTs have become part of the crazy financial world that now includes cryptocurrencies and blockchain technology. In May, people were buying and selling an estimated 85,787 NFTs day, according to application tracking firm DappRadar, which works out to a total value of $5.8 million each day.

While they are currently lucrative and immensely popular, will NFTs last?

There are some drawbacks to dealing in NFTs, of course, as there are in any transactions. The amount of money involved may inspire some to risk too much money, for example, and NFT sales have slipped recently. In fact, some claim that the “NFT bubble” has burst – but that probably will not stop NFTs from following in the footsteps of other forms of currency and cryptocurrency by becoming mainstream and more stable.

NFTs will Likely Survive (and Thrive!) in the Long Run

Once all of the shiny newness wears off and NFTs become boring, non-fungible tokens could become something far more useful and far more widely used as practical business solutions. The blockchain technology that maintains the digital records does not need a centralized system to run, for example, so transactions can potentially happen much faster and easier. The blockchain also maintains a permanent record of all transactions connected to the NFT and the property it represents. Finally, NFTs can contain coded elements, known as smart contracts, which can automatically take action in certain circumstances to implement an automated and self-enforcing set of rules that cannot be skipped or ignored.

NFT technology also has a certain democratizing nature that will serve it well in the future. Anyone can log on and purchase items, without the restrictions to access that historically prevented some from buying the goods and services they desire. This is a departure from the past for many, especially for those in the art world, in which anonymous investors would receive invitations to private auctions and would often tuck valuable art away for years, waiting for it to become more valuable.

Even more sustaining is the transparency of NFTs. The entire history of the item, including the date of its creation, the owner, past purchasers, and purchase price, becomes part of a publicly visible ledger. While the concept of recordkeeping certainly isn’t new – the first written records of property and livestock ownership are more than 5000 years old, after all – the blockchain technology that creates the transaction records is revolutionary.

Interest in cryptocurrency and the rise of art market speculation has sparked interest in NFTs, and the pandemic added fuel to the fire – locked inside during the shutdown, people found new ways to shop and purchase items. It also sparked greater interest in art, music, videos, graphics, and more. Consumers began looking for new experiences that could add meaning to their lives. We began valuing digital goods in much the same way as we have always valued physical goods.

NFTs will likely be around a while for two important reasons: the technology is interesting and useful, and people are making money. Combining useful, interesting technology with big profits is a recipe for success.

ABOUT FRANK MAGLIOCHETTI

Frank Magliochetti owes his professional success to his expertise in two areas: medicine and finance. After obtaining a BS in pharmacy from Northeastern University, he stayed on to enroll in the Masters of Toxicology program. He later specialized in corporate finance, receiving an MBA from The Sawyer School of Business at Suffolk University. His educational background includes completion of the Advanced Management Program at Harvard Business School and the General Management Program at Stanford Business School. Frank Magliochetti has held senior positions at Baxter International, Kontron Instruments, Haemonetics Corporation, and Sandoz. Since 2000, he has been a managing partner at Parcae Capital, where he focuses on financial restructuring and interim management services for companies in the healthcare, media, and alternative energy industries. Last year, he was appointed chairman of the board at Grace Health Technology, a company providing an enterprise solution for the laboratory environment. Frank is also CEO of ClickStream, ClickStream’s business operations are focused on the development and implementation of WinQuik™, a free to play synchronized mobile app and digital gaming platform. The platform is designed to enable WinQuik™ users to have fun, interact and compete against each other in order to win real money and prizes. Twitter at @ClickstreamC  @WinQuikApp, Nifter™, a music NFT marketplace that allows recording artists to create and sell limited edition authenticated NFTs, and their foreign language exchange learning app  @HeyPalApp.

Frank was appointed Chairman and Chief Executive Officer at Designer Genomics International, Inc. The Company has accumulated a growing body of evidence that highlights a link between alterations in the immune and inflammatory systems and the development of chronic human disease. The Company is visionary and has established itself as a leader in the field of inflammatory and immune genetic DNA and RNA biomarkers that play a causative role in debilitating conditions, such as atherosclerosis/heart disease, diabetes, arthritis, inflammatory bowel disease, post-traumatic stress disorders (PTSD) and cancer.
A proprietary state-of-the art data mining bioinformatics program, called ‘cluster analysis’ will be used to measure disease development susceptibility with potential for earlier diagnosis and intervention. The company is developing a healthcare program based on its proprietary genetic panels that will allow people to be their own healthcare advocate and take an active role in their health status as well as longevity.

Sources

https://www.sfgate.com/bayarea/article/05-2021-SF-apartment-leases-nfts-crypto-auction-16147945.php

https://news.artnet.com/art-world/grimes-sold-nft-art-1948177

https://www.charliebitme.com/#/auction/39

https://www.forbes.com/sites/zengernews/2021/05/30/after-the-hype-the-future-for-nfts/?sh=1af5c6912146

https://dappradar.com/blog/what-crypto-crash-nft-trading-volume-tripled

https://www.khanacademy.org/humanities/big-history-project/agriculture-civilization/first-cities-appear/a/recordkeeping-and-history