What are NFTs and how are Kings Of Leon, Grimes, 3LAU making millions selling them?
What are NFT’s and why are musicians embracing them? Grimes sold $5.8 million of them in the first 20 minutes as part of a digital art auction.
3lau (aka Justin Blau) grossed $11.6 million in NFT sales and his management company is planning other offerings.
Kings of Leon’s new album will be released Friday as NFTs and purchasers can unlock special perks like limited-edition vinyl and front row seats to future concerts. There will be three types of tokens, in addition to the music being available on Spotify, Apple Music, and the like.
Portugal. The Man and Shawn Mendes have been getting playing with NFTs.
What is an NFT?
NFT stands for Non-fungible cryptocurrency token.
Non-fungible” means that it’s unique and can’t be replaced.
Bitcoin is fungible – you can trade one for another bitcoin, and you’ll have exactly the same thing. Conversely, a one-of-a-kind piece of art or music or even a seat at a concert is non-fungible.
Because NFTs operate on a blockchain, anyone can access the details of an NFT transaction and their value goes up and down like stocks.
Why are artists and fans embracing NFTs?
Fans of these artists are betting that the value of their NFT purchase will go up and that in turn allows artists to charge a premium for the initial purchase as well as – for now – get a nice PR bump.
The Kings of Leon of Leon NFT sale begins via the Yellowheart platform at Noon on Friday, March 5th and will last for two weeks
Sale details via cNet:
“… the album as three types of tokens, with one being a special album package, the other providing live show perks like front-row seats, and another for exclusive audiovisual art. The token will cost $50, and will include a digital download, limited-edition vinyl and “enhanced media” like a moving album cover.”
“YellowHeart is also creating 18 “golden tickets,” according to the report, six of which the band will auction while the rest will be vaulted. ‘Each one of those is a unique NFT with the most incredible Kings of Leon art you’ve ever seen,’ YellowHeart CEO Josh Katz told Rolling Stone.”
“Owners of the tokens will have access to four front-row seats during any Kings of Leon tour for life. They’ll also get a VIP experience with a personal driver, concierge at the show and the chance to spend time with the band before the show, as well as lounge access. When the show’s over, their car will be packed with four bags containing all items from the merchandise booth.”