Input 2021.03.24 14:00
Musicians are also jumping into the non-fungible token (NFT) market, which has heated up with the participation of Twitter founder Jack Doshi and others. It is evaluated that it can be a new source of revenue for musicians who were struggling with the on-site performances stopped due to the corona.
NFT is a kind of virtual asset, a technology that gives a unique mark to digital contents using blockchain technology. Metadata containing information about the product and a timestamp that prevents illegal copying are combined to create a unique asset in the world. It is evaluated that it has opened up a new investment market by giving uniqueness to digital assets that were not meaningful to own because they could be duplicated.
A tweet recently posted by Twitter CEO Jack Doh in 2006, “just setting up my twttr,” was auctioned off for $2.9 million (approximately 3.27 billion won).
However, if you buy a sound source through NFT, you do not own the copyright. It is sold at a high price in that it has uniqueness. The profits earned in this way are divided between 50 and 50 by artists and production companies.
As the NFT market heats up, musicians are rushing into the market. This month, the dance music duo Disclosure in the United States produced a new song and sold it to the NFT, making a profit of $69,000 (about 78 million won). Last year, Dead Mau 5 sold an NFT pack containing digital collectibles such as animated stickers and virtual trading cards for about $100,000. According to a survey by music technology researcher Cherry Hu, the number of NFTs made by musicians from June to the present amounted to about 29,800, with sales revenue of 42.5 million dollars (about 48.13 billion won). Each NFT work sold for an average of $1427.
Another factor that calls for investment is that the process of manufacturing and selling NFTs is easy. NFT can be easily made and sold by the general public. On an NFT platform such as Rarible, you can create an NFT work simply by entering the Create tab and uploading a file in the format of PNG, GIF, MP3, etc. NFTs uploaded in this way can be easily bought and sold through cryptocurrencies such as Ethereum in markets such as OpenSea.
The industry is hoping that this NFT craze, initiated by virtual asset investors such as bitcoin, will spread to the general music fan base. Charles Goldstuck, co-founder of LA Reed and Hitco Entertainment, predicts that “the market will explode as more artists and celebrities start participating in the NFT.”