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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/04\/23\/dj-and-crypto-startup-founder-3lau-explains-the-value-behind-music-nfts\/<\/a><\/br> When people think of NFTs, the first use case most of them likely think of is visual art. From Beeple\u2019s $69 million sale of a digital collage at Christie\u2019s to the Bored Apes Yacht Club collection, visual art has seemed to be the most prominent use case for NFTs due to close similarities with traditional fine art investing. The fact that digital art can be viewed and replicated endlessly online has led to some confusion for plenty of consumers with what exactly they\u2019re buying, however.<\/p>\n \u201cThe idea that someone can just say, \u2018hey, this is mine now, I just saved the image to my laptop, and I\u2019m using it as my background,\u2019 \u2014 it seems really obvious. But then when there\u2019s a real, true owner, and you can validate that on-chain, it makes that other person look kind of foolish, at least within the web3 community,\u201d <\/span>DJ and NFT art collector Justin Blau explained in an interview on the TechCrunch podcast Chain Reaction<\/a>.<\/p>\n Blau, who is better known by his stage name, 3LAU, co-founded\u00a0Royal<\/a>, a startup that allows users to invest in tokens through its marketplace, which enables them to earn streaming royalties on their favorite songs. The company raised a $55 million Series A round<\/a> from Andreessen Horowitz\u2019s crypto investment arm last November, less than three months after bagging $16 million in seed funding<\/a> led by Founders Fund and Paradigm.<\/p>\n NFTs sold on Royal represent two things, Blau said. First, they represent the intrinsic value of copyright ownership, and second, the emotional value of owning something scarce that\u2019s associated with your favorite artist. <\/span>Blau sees utility in use cases for NFTs beyond the visual art world, but said he doesn\u2019t think the same form factor and manifestation for those NFTs will apply to every different form of media.<\/p>\n Music, for example, is invisible, so it wouldn\u2019t make sense for music NFTs to be applied the same way as NFTs for visual art, he said.<\/p>\n \u201cIt\u2019s not a commoditized type of asset. The only way people have collected music in the past is with CDs and vinyl, and right now with a streaming service. Everyone\u2019s music collection is theoretically the same, right? You pay the subscription, you get access to everything,\u201d Blau said.<\/span><\/p>\n To evaluate whether an NFT project makes sense, Blau likes to use the framework that if a behavior exists in reality and can be replicated in the digital world, it will likely be a successful use case for NFTs. If a behavior doesn\u2019t already exist, it probably isn\u2019t the best manifestation for NFTs, he added.<\/span><\/p>\n \u201cI think the music example is specifically the most interesting, where collecting an actual audio file for thousands and thousands of dollars just doesn\u2019t seem to make sense, because no one would do that in the real world,\u201d Blau said.<\/span><\/p>\n That\u2019s why at Royal, Blau and his co-founder JD Ross (who also co-founded homebuying startup Opendoor) have chosen to apply NFTs to the copyrights behind songs. The copyright of a song is what\u2019s scarce, not the audio itself, which can be streamed by any user, Blau explained.<\/p>\n Streaming income represents about 84% of all income generated by music, he added. The reason artists receive so little of that income, in Blau\u2019s view, is because of middlemen like record labels taking a cut, not because streaming itself is not lucrative.<\/p>\n As an independent artist himself, Blau shared the example of his song \u201cIs It Love,\u201d saying that he turned down a deal that would have paid him $15,000 for 50% ownership of the song, which he said ended up taking off and generating upwards of $700,000 in revenue.<\/p>\n \u201cMy fans probably would have given me a better deal. They probably would have been willing to pay more than the $15,000 \u2026 and should that song have succeeded, they all would have had some sort of return \u2014 both from a pure asset value appreciation standpoint and from a cash flow standpoint,\u201d Blau said.<\/span><\/p>\n Royal\u2019s platform will eventually allow digital asset holders to be able to engage directly with artists and access exclusive perks, such as token-gated shows, he noted.<\/p>\n You can listen to the entire interview with Blau<\/a> on our podcast, Chain Reaction. Subscribe to Chain Reaction on Apple<\/a>,\u00a0Spotify<\/a>\u00a0or your alternative podcast platform of choice to keep up with us every week.<\/em><\/p>\n<\/p><\/div>\n <\/br><\/br><\/br><\/p>\n
\nDJ and crypto startup founder 3LAU explains the value behind music NFTs<\/br>
\n2023-01-20 22:52:59<\/br><\/p>\n