NFT or Non-Fungible Tokens changed the modern music industry in many ways. Musicians and artists are now selling their music tracks, albums, and covers in NFT auctions rather than through traditional markets. In 2021, the Music NFT market value was estimated to be close to $1.240 billion. According to a recent forecast, the Music NFT Market value will reach a market value of $42 billion by 2032. However, the question is how does the NFT Music Marketplace work? What is it, and how can you buy music NFT?
We’ve got answers to these questions and more in our blog. Let’s read about music NFT and the leading marketplaces to buy them.
A non-fungible token is a digital asset sold on a blockchain. It is tied to a physical entity and represents the entity’s value in digital tokens/ currency. A majority of NFTs in the market are for digital arts but also include an active selection of music tracks, singles, albums, etc.
The main difference between buying a music track online and an NFT is ownership. When you buy iTunes, you only buy the right to listen to it. However, when you buy music NFT, you get ownership rights along with the listening rights. You can sell the NFT to another person and make money (though you will lose the ownership rights).
The selling price of music NFTs from the music NFT marketplace goes directly to the artist. Out of the told selling price, the NFT marketplace only charges the network fees. This is a big change from the traditional method where the sales proceeds go to the music house, which then pays a portion of the amount to the musician as royalty. Fans are showing more interest in buying music NFTs as they can promote their favorite artists by removing the music houses as middlemen.
Furthermore, people who purchase music NFTs get additional benefits like discounts to stage shows of the artists, personal one-to-one meet-ups with the musician, access to special/ exclusive events, and more. The benefits depend on what the artist wants to give people who bid for the music NFTs.
Until recently, there were no royalties on music NFTs. Those who purchased the tokens had ownership rights on the blockchain but nothing else. The NFT owners didn’t get any royalties when the songs were used elsewhere. However, some platforms are changing this.
For example, Royal is a music NFT marketplace helping artists create royalty-bearing NFTs for their music. These are called Limited Digital Assets (LDAs), which allow artists to share royalties with fans who own the NFTs of the track. 3LAU created the first LDA for his Worst Case song and the associated artwork in 2021. He gave 50% streaming royalty rights to fans who owned the NFTs.
NFTs give artists and musicians more control over their creations. They can directly sell to their fans by shortening the distribution chain. However, where and how do they sell music NFTs? There are quite a few marketplaces/ platforms created for artists to mint NFTs for their creations and sell them on the blockchain.
Here are the top five music NFT Marketplaces that have recently become very popular:
Royal was founded by 3LAU and JD Ross in 2021. It is much more than a marketplace to buy and sell music NFTs. The platform has a similar ideology to Kickstarter, where the creators and early investors benefit from sales. It has mining tools for creators and offers streaming royalty for NFT collectors.
It was founded in 2018 by twins Duncan and Griffin Cock Foster as an online auction platform for digital art. It is one of the initial NFT marketplace for music that played a vital role in promoting the concept in the industry. You can use cryptocurrency and fiat currency to buy NFTs on Nifty Gateway.
David Greenstein founded Sound.xyz in early 2021 to provide a platform for a collaborative music experience where users can directly support their favorite musicians. The artists launch their songs along with limited NFTs. Fans buy the tokens and comment about the song at a chosen timestamp. The comment stays online as long as the fans own the NFTs.
SuperRare was founded in 2018 to sell NFTs for high-quality digital art online. It is a real digital art gallery with carefully chosen pieces. The platform has many critics as members interested in buying art and music NFTs to add to their collections.
It was founded in 2018 by Ramy Adly as a place for artists to list their profiles. Gradually, The Musician Marketplace is among the leading platforms for music NFTs. There is no commission either to use the music NFT Marketplace. Just pay the one-time fee and make use of all the features forever!
Musicians, songwriters, singers, instrument players, etc., can now build a fanbase online and sell their creations on music NFT marketplace. Emerging artists get a chance to establish themselves, while famous artists can directly interact with their fans. Antier can be your perfect partner for building the business logic of running an NFT marketplace for music for coding a secure and intuitive marketplace. We understand the art of end-to-end development of decentralized platforms for NFTs.
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