Disclaimer: Nothing here is financial advice. These are insights from my personal experience of collecting & investing in music NFTs
I recently bought Music Non-Fungible Tokens (NFTs) from well-known artists like Snoop Dogg, Chainsmokers, and Bored Brothers. I published an article on Readers Digest about how Music NFTs are shaking up the music industry for both fans and artists. Many people have been asking me if they can make money with music NFTs. In this article, I’ll explain what music NFTs are and give you a guide on how to invest in them, so that you can decide if it’s something worth pursuing and investing your money in. Before We dive into the guide to investing in music NFTs, check out a music NFT playlist that I curated:
what exactly is Music NFTs?
Music Non-Fungible Tokens (NFTs) are digital collectibles associated with an individual song or album which are issued on the blockchain by artists or their representatives for sale to fans, collectors, and investors. These tokens represent ownership of a piece of digital art or music, similar to owning physical items such as vinyl records or CDs. Unlike other types of NFTs, however, these tokens don’t grant any rights to the actual music but rather act as proof of ownership.
The reasons why people buy Music NFTs vary greatly depending on who you ask. For some people, it’s simply a way to show appreciation for their favorite artist by buying unique pieces of art related to the song or album they love — something that no one else owns — while others see it as an investment opportunity due to the limited supply and potential appreciation in value over time.
When you purchase a Music NFT, what do you actually get?
You don’t get the rights to use the underlying music itself; instead, you get access to exclusive content related to that particular song such as artwork or videos associated with it. Additionally, since these tokens are created using blockchain technology they provide buyers with additional security features such as ownership tracking and immutable proof that they own a particular piece of digital art or music. Collectors as a utility often get access to private discord servers with artists where artists like chainsmokers pop in and have a chat with their fans. Collectors of music NFTs usually get early access to future music drops & merchandise from the artist.
Is it worth investing in Music NFTs?
It all depends on your individual opinion and willingness to take risks with your investments – there is always the potential for upside gains but also losses so always do your research before putting money into any asset class! That being said, some experts believe that Music NFTs could eventually be used for more than just collecting – such as royalties payments for streaming platforms – which could make them even more lucrative down the line. The platforms such as Royal.io hosts artists such as Chansmoker, Nas & Diplo who share streaming earnings with their collectors.
Currently, Music NFT trading is a legitimate earning source for many. A lot of short-term traders are collecting music NFTs from primary launching platforms such as Sound.XYZ, and then selling them on the secondary marketplace such as opensea.
In addition to trading, collecting music NFTs of an aspiring artist is a way to bet on a promising career of the artist just like an early venture capitalist. Many collectors are getting involved with music NFTs to mark their foothold of becoming a curator.
Read on to learn the step-by-step guide to investing in music NFTs.
How to start investing in Music NFTs? A step-by-step guide:
Research different projects and artists available on popular marketplaces like Soundsxyz, Royal, or OpenSea, and check out websites like dune analytics for detailed information about each music Nfts, including pricing history.
Follow web3 artists who are builders and pioneers of music NFT projects on Twitter, such as Coopahtroopa, 3Lau, Rohki, Bored Brothers, and Chainsmokers.
Track whale alerts and big collector buys on websites like NFTgo.io and participates in discord groups specialized for music NFTs.
Learn about the market cycle. Examine if the NFT is overpriced. You can track price history from the analytics dashboard on marketplaces and dune analytics. Check out this dune analytics dashboard SOUND MUSIC NFTs, and here you will find all the data from the biggest primary music NFT platform, sound.xyz
Consider why you want to buy the Music NFT, your personal preferences for the music and the artist, and if there are any perks associated with holding the token, such as royalty payments or access to a private group. Choose the Music NFTs that fit your budget and risk tolerance and invest wisely. Only invest money that you can afford to lose.
If you decide to collect & invest in music NFTs, Consider the following referral link: Soundxyz.music
How much should I expect to pay for a Music NFT?
Prices vary depending on the artist/project but generally range from $10-$1000+. Because most music NFTs are launched on a blockchain such as Ethereum, you will need the native blockchain currency such as ether to collect the music NFTs. Remember the price of these cryptocurrencies is volatile, and the price of the actual music NFTs can fluctuate based on the price of the native currency.
It’s important not to forget about transactions & blockchain networks i.e. gas fees when calculating costs though; most marketplaces charge around 0-5% per transaction so make sure you factor these into your calculations too! Ultimately whether investing in Music NFTs is worth it comes down to personal preference – if you’re looking for an exciting new asset class then definitely give them a try!
In conclusion, I recommend intensive learning & awareness of the music NFT space before playing with real money. Many artists often drop free music NFTs that you can start collecting and gradually promote into becoming a pro-investor.
Mortuza is a certified Digital marketer with a Master’s degree in International Economic Relations (Spec. International Business).
An entrepreneurial professional, crypto native, and deeply involved in web3, i.e., blockchain, NFT & metaverse community. The author spends hours researching all the exciting new trends in the broader business world.