A short guide in the endless field of non-fungible tokens, how to avoid myths, bad opinions and haters.
NFTs — what are they?
NFTs — everybody has heard about them, read an article, but still not entirely clear on what they are. NFTs have even been defined in the Dictionary.
The simplest explanation of an NFT, is a rare digital asset who’s scarcity is confirmed via a smart contract on the blockchain and whose value is represented by a cryptocurrency.
The NFT as a digital asset might be a graphic image, section of video, ticket for a show, full song/album, music stem etc which can be sold on a virtual marketplace for a certain value. In contrast to the traditional trading archetype, the artist can also get paid every time the NFT is resold on the secondary market, a unique feature of the smart contract it is tied to.
Smart contracts also allow for automated splits, i.e you and your collaborators all get paid your share of the sold NFT, automatically in full transparency.
This kind of transparency and secondary markets are a first for artists, who’ll really see and know the value of their art, track ticketing sales, collaborate with other artist without complications in the sales process, remove costly intermediaries, as well as owning your work for perpetuity as once its on the blockchain, it’s forever!
Now, here we come to the first myth, which is what kind of NFT can you drop?
The format is only audio-visuals and graphics!
Grimes, Halsey, Galantis, Megadeth — these are only a few from a sea of artists who released NFTs this year with just visual/graphic assets.
But it doesn’t mean you have to do the same format or hire a designer to help you out. Blockchain is holding every form of digital asset, so get creative, and think about the people who will buy it…your fans!
Unlockable content, exclusive merch, golden tickets for the next tour, access to websites for owners of the NFTs etc. are all extras that can be tied in with your core NFT to make the experience more fan friendly.
The more dedicated your fanbase the better and a well thought out NFT drop is a unique way to interact and stand-out given that the majority of the galleries and online marketplaces look so similar/ boring due to the majority of people thinking there is only one “proper format” of NFT, i.e the static digital image. It’s time to think about NFT 2.0, NFT 3.0 and so on (more about them another time!).
NFTs need special marketing and dedicated PR!
The next stop after you create your unique asset is marketing and PR. Lots of artists are either panicked that they don’t know how the market works or (even worse) that they don’t need to market because Beeple sold his piece for almost $70 million and there will surely be somebody who will buy it regardless.
The truth hurts- NFTs are not magic beans, there is no difference between them and the casual release you are doing for your EP, album, song, video or any other art legacy. You need to market it exactly the same or even harder — since lots of your audience, especially in Europe, are new to the concept/format. Educating your audience is very important because it makes them understand that by buying your art they invest in YOU and also they can continue to earn after selling it on the secondary market.
So what you are going to do now is to forget about Beeple, Elon, the moon etc. and start thinking about your non-fungible token as a normal release of your music as well as an extension of your brand.
NFTs are dead!
Stop counting on crypto nerds who will buy your NFT just because it’s an NFT, this period is long gone. The good news however is the NFT market is not a trend, it’s a new and exciting art form that can finally bring you the transparency you want. You will see beforehand who is taking what percentages and the crypto will come directly to your e-wallet without any third party involved, just 1:1 with your fans.
The hype and pseudo artists have moved on, so it’s a great time to get over all these myths and start creating serious music projects that utilize the power of blockchain.