American rapper Nas has announced he will be selling streaming royalties for two of his songs, for fans to invest in.
You’re probably reading this and thinking, “Ugh not more pointless shit being sold as an NFT.”
Look, kind of… but at least investors have the potential to earn real money if the songs perform well. Here’s how it’s going to work:
Tomorrow, Nas is going to release 760 NFT tokens for his song Ultra Black, then the day after, 1,110 tokens will be available for his track Rare.
Without further ado.. we're honored to announce Hip Hop legend, innovator and entrepreneur @Nas will be the first artist to drop his music on royal on January 11th! https://t.co/TkyWvOJOvY pic.twitter.com/hQGGXVuPhz
— royal (@join_royal) January 6, 2022
Investors can purchase the tier of ownership they want to own, ranging from Gold tier to Diamond. The amount you invest corresponds to the percentage of the royalties that you own/earn.
Ultra Black tiers:
Gold: 0.0143% streaming royalty ownership for £37 ($58 AUD)
Platinum: 0.0857% streaming royalty ownership for £184 ($290 AUD)
Diamond: 2.14% streaming royalty ownership for £3679 ($5800 AUD)
Gold: 0.0113% streaming royalty ownership for £73 ($115 AUD)
Platinum: 0.0658% streaming royalty ownership for £368 ($580 AUD)
Diamond: 1.5789% streaming royalty ownership for £7358 ($11,600 AUD)
While this may not be the soundest investment, the concept of selling royalties as an NFT could be pretty huge for the music industry as a whole.
Put simply, NFTs could prove themselves as a new form of income for independent musicians and in turn, backers could invest in up-and-coming bands who they predict will become popular.
Without a record label, getting started can be the most difficult obstacle for musicians, because it can be an expensive gamble without a guaranteed income.
But NFTs could be a great option for indie artists because they could potentially sell the royalties for their first few singles and have the money upfront to fund the recording of a debut record.