A new form of NFT has hit the market and it’s as dangerous and uncertain as the last. Non-fungible tokens (NFT), tradable assets made from blockchain technology that can’t replicated, sprung into popularity in late 2017. The invention of its pioneering standard ERC-721, led to NFTs being adopted in the general market in 2020, with many being incorporated with digital art and video games. Now, many within the music industry are trying to use NFTs as another way to get their music out there.
According to Rolling Stone, NFTs in the music industry allow artists a better direct way of communicating with fans. Using the aura of exclusivity NFTs bring, artists can push out exclusive items such as limited-edition tracks and virtual experiences for fans to enjoy. Additionally, CoinTelegraph noted that Music NFTs allow artists to bypass the strings that come with traditional record labels and streaming platforms, and allow for more “transparent and direct income streams.”
Already, the industry has seen artists like Justin Bieber, GRIMES, and Kings of Leon produce NFT content. In recent news, massive organizations like Coachella announced their second try with an NFT collaboration, following their 2022 collaboration with the now-defunct FTX.
Now, in its latest partnership with OpenSea, Coachella will be releasing three NFT collections with real-world perks in the lead-up to the event in April, each comes with unique perks including VIP Festival Passes. It is the first of its kind of OpenSea, as it leans more on ticketing, which according to Devin Finzer, CEO and co-founder of OpenSea, is the best type of NFTs for the industry.
“Coachella has the audience and distribution to take it to a whole other level,” Finzer added. “The willingness to make this an NFT that is useful and valuable and something people will be excited about versus some of the things in the past NFT projects has been, maybe more half-baked, this is something that is sophisticated and exciting with real-world value.”
In an email to Blockworks, Coachella innovation lead Sam Schoonover shared his thoughts on Coachella’s re-investment with NFTs.
“This is our second year offering this to Coachella fans and we expect their response to be as positive as it’s always been. We know that fans don’t care about the technology, they just want to have fun. So that’s what we aim to provide,” Schoonover said.
Despite the optimism, the public reception towards NFTs hasn’t gone away. In addition to NFTs still being difficult to access for the average consumer, they are still uncertain when it concerns copyright law. A recent study from the US Copyright Office (USCO) and the Patent and Trademark Office (USPTO) found that NFT buyers and sellers could use NFTs to “facilitate copyright or trademark infringement.”
“There are also no cross-platform mechanisms to allow trademark owners to identify and take down infringing content, settle trademark-related disputes involving blockchain-based domain names, or confirm that sellers own the trademark rights associated with the assets they offer.” the report continued.
As it stands today, the NFTs are still too volatile, and with the industry strict around ownership and copyright as the Music industry, the drawbacks could be potentially too much of a risk for artists with too much to lose.
