Crypto startup founder and DJ 3LAU explains the value behind musical NFT – TechCrunch

When people think of NFT, the first use case that most of them think of is the visual arts. From Beeple’s sale of a $69 million Beeple digital mosaic at Christie’s to the Bored Apes Yacht Club collection, visual art seems to be the most prominent use case for NFT due to its close similarities with traditional fine art investment. However, the fact that digital art can be viewed and replicated seamlessly online has led to some confusion for many consumers with exactly what they are buying.

The idea that someone could say, ‘hey, this is mine now, I just saved the image to my laptop and I’m using it as my wallpaper,’ – it sounds real apparent. But then, when there’s a real, authentic owner, and you can validate that on-chain, it makes other people look stupid, at least in the web3 community.” DJ and NFT art collector Justin Blau explains in an interview on TechCrunch’s podcast series reaction.

Blau, better known by his stage name, 3LAU, co-founder Royal, a startup that uses NFT to let users buy “stakes” of songs through its marketplace and earn royalties when those songs become popular. The company raised $55 million Series A round from Andreessen Horowitz’s crypto investment arm last November, less than three months later pocketed $16 million in seed funding led by Founders Fund and Paradigm.

Blau said: The NFT sold on Royal represents two things. First, they represent the intrinsic value of copyright ownership, and second, the emotional value of owning something scarce associated with your favorite artist. Blau sees utility in use cases for NFTs beyond the visual arts world, but said he doesn’t think the same form and expression factor for those NFTs will apply to every form of media. difference.

For example, music is invisible, so it doesn’t make sense for musical NFTs to be applied in the same way as NFTs to the visual arts, he said.

“It is not a commoditized asset class. The only way people collected music before was using CDs and vinyls, and right now streaming services. Everyone’s music collection is theoretically the same, right? You pay the subscription, you get access to everything,” Blau said.

To assess whether an NFT project makes sense, Blau prefers to use a framework that, if a behavior exists in the real world and can be replicated in the digital world, it could be a field. successful use cases for NFTs. If a behavior doesn’t exist yet, it may not represent the best for NFT, he added.

“I think the music example is particularly interesting, where collecting an actual audio file for thousands and thousands of dollars doesn’t seem to make sense, because no one does,” says Blau. that in the real world.”

That’s why at Royal, Blau and co-founder JD Ross (who also co-founded home-buying startup Opendoor) chose to apply NFT to the copyrights behind the songs. The copyright of a song is something that is scarce, not the sound itself, that can be streamed by any user, Blau explained.

Online earnings account for about 84% of all music-generated income, he added. In Blau’s view, the reason artists get so little income is because middlemen like record labels cut back, not because streaming itself isn’t profitable.

As an independent artist, Blau shared an example of his song “Is It Love,” saying he turned down a deal that would have paid him $15,000. to own 50% of the song, which he says eventually took off and made a profit. revenue $700,000.

“Mothery fans will probably give me a better deal. They could have been willing to pay over $15,000… and if that song was successful, they would all have some profit – both from a pure net worth standpoint and from a cash flow standpoint.” Blau said.

Royal’s platform will eventually allow digital asset holders to directly interact with artists and access exclusive perks, such as tokenized performances, he said. idea.

You can listen to the whole Interview with Blau on our podcast, Chain Reaction. Subscribe to Chain Reaction on Apple, Spotify or alternative podcast platform of your choice to keep us updated on a weekly basis.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button