Spotify isn’t the only top tech company profiting from the trend; Mark Zuckerberg recently announced that Instagram will soon allow NFTs. Blockchain technology serves as a digital record for certifying digital product ownership.
As per market watcher Nonfungible.com, graphic artworks, gaming title, and memorabilia accounted for the great bulk of the $17.7 billion in NFTs transacted in 2021.
Over the last several weeks, enthusiasm in the cryptocurrency realm has begun to wane, but there are expectations that the music business can reinvigorate the enthusiasm. This might include trading digital music or utilizing NFTs to get access to concert goodies such as merchandising and backstage admission.
Snoop Dogg and DJ Steve Aoki, among other musicians, have indeed established themselves as NFT hoarders, while American bands Kings of Leon and Grimes have also sold NFTs of their songs.
Warner Music Group and Universal Music Group have partnered with NFT on initiatives such as a digital band starring avatars from the Bored Ape Yacht Club.
In a business podcast in 2019, Spotify CEO Daniel Ek said that the usage of crypto and blockchain technology might enable customers of “a service similar to Spotify… to be capable of paying musicians personally,” particularly across international boundaries or in areas where few individuals have regular bank accounts.
“This has huge potential, such as when a fan in Japan decides to reward an artist in Argentina. And this offers up a lot of possibilities for how we might advance our objective.” he said.