The conversation around crypto has shifted toward digital ownership, and non-fungible tokens (NFTs) are getting their share of the limelight. As everyone from big-time crypto enthusiasts to mainstream celebrities is getting in on NFTs, many questions concerning these assets still remain unanswered.
Some of those examining the NFT art market are questioning the real value of non-fungibles. Others wonder if NFT buyers actually own the art represented by the tokens.
So, What Do I Get with My Music NFT?
To get an answer to that question, let’s look into three main types of music NFTs.
Digital music art NFTs are fruits of collaborations between musical and visual artists: think one-of-a-kind cover art or virtual collectibles, like digital glasses depicting emotions that went together with Emery Kelly’s S.O.M.E album. They can also represent unique merchandise and recordings, such as Whitney Houston’s demos or John Lennon’s coat.
Besides sentimental value for the fans, these NFTs carry monetary value. It will vary depending on the popularity of the artist, market demand, uniqueness of the piece – and, in the case of digital artworks, effort and mastery invested, as well as the social capital of the artist. For example, collectors will pay top dollar for a limited-edition piece of art created by a trending artist tied to a specific event.
Fan-funding NFTs allow artists to share a percentage of royalties for perpetuity with their funders or for a limited period of time: for example, a year. Through them, fans get an opportunity to support their favourite artists and make sure more good music make it to release – with a share of the royalty as a wonderful bonus.
Do you love music, and think you can discover a hit? Then you may also want to look into these. With fan-funding NFTs, it becomes as easy as 1-2-3 to try on the music A&R’s shoes.
And lastly, holders of fan engagement tokens get access to unique experiences and perks, such as meet-and-greets, VIP chats and fan communities, autograph sessions, artist-led AMAs, access to concert ticket sales, and more. Thanks to the flexibility of the NFTs, there’s hardly a limit to what can be tokenized.
Planning Your Music NFT Purchase
Now that you’re more aware of what you get with a music-related NFT, there are some factors to consider before making the purchase.
First, decide on your main goal. Is it an emotion that is driving you, or are you chasing a profit? Do you want to support your favorite artist, get hold of a unique piece of art, become a part of an exclusive community, or get a side income? Answering these questions will help you decide what type of NFT you should look into.
Then, examine the rational and emotional value of the NFT. Which benefits will you get from holding the non-fungible? How long will these last? Do you intend to sell it? If it’s a piece of merchandise you want to resell later, have you considered the risks it may go down in price? Will you be happy with the purchase in a week, or are you doing it because of the hype or FOMO?
Another thing to consider is where you will buy your music NFTs. The best choice would be platforms that represent the artist: you’ll likely find the list of them on their official website or the landing page of the drop. Ideally, the marketplace will have detailed information that will help your decision, such as the value of the NFT, its history, if the token is part of a limited run, and so on.
Music NFTs for Everyone
Summing up the above, music NFTs cater to different kinds of buyers’ personalities, as they have both emotional and monetary value. The benefits they create range from the joy of making a connection with your idol – whether it’s attending a meet-and-greet or owning a unique collectible – to giving them your support and taking part in the creative process; from the sense of belonging to an exclusive fan club brought together by the same passion to getting a side income as a music rights holder.
Whatever of these is your goal, you’re bound to find an option that will be a good fit for you. By weighting these options and making sure they correspond with your needs, you can make sure you are happy with your future NFT purchase.
