Artist who tokenized album for $11M explains why the NFT boom isn't like the ICO craze
March 12, 2021, 1:59PM EST · 2 min read
Episode 16 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Ryan Todd with DJ and music producer 3Lau.
This episode is brought to you by our sponsors Bakkt and Kraken
Bakkt® unlocks the $1.2+ trillion of digital assets that is currently held in cryptocurrencies, rewards and loyalty points, gaming assets and merchant stored value. We began in 2018 with the vision to bring trust and transparency to digital assets. Through the Bakkt Warehouse and Bakkt Bitcoin Futures and Options contracts, we serve institutional clients in an end-to-end regulated market with true price transparency. For consumers, Bakkt aggregates digital assets to enable instant liquidity and to empower users to trade, transfer and pay however they want. Visit Bakkt.com for more information
Whether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
The market for non-fungible tokens, digital collectibles, and tokenized music is hitting the mainstream. On Thursday, Beeple's NFT-powered suite of 5,000 images sold for a staggering $69 million, making it the third-highest figure paid for work by a living artist. Indeed, the sale sent shockwaves across the broader press, cementing NFT's place in the mainstream consciousness.
The market has been growing at a fast clip, with weekly users on NFT platforms soaring from around 20,000 at the beginning of the year to nearly 200,000 this week, according to data from The Block.
On this episode of The Scoop, The Block's Frank Chaparro and Ryan Todd unpack the market's recent headlines with DJ and music producer 3Lau.
Performing artist 3Lau has long been focused on the intersection of music and crypto. Recently, he tokenized an album in a move that netted the Long Island native more than $11 million.
In this episode of The Scoop, the group discusses how tokenization will usurp record labels and put more money in the pockets of artists, his plans for helping more artists get involved in NFTs, and what makes this current crypto boom cycle different from the initial coin offering rally.
"You have these middlemen that have capitalized on artists' emotions and their lack of financial savviness," he said, describing the record labels and managing companies that capture much of the value from a musician's work.
Through NFTs, artists can now engage directly with their audiences.
"Beeple is an example of that as someone who makes amazing stuff. Will there be speculation in the short term? Yes. Will there be innovation in the long term? Yes," he said, adding:
"But in the end, just like with any market, there is a period of price discovery and that's what we're going through right now. The difference between this and what happened with the ICO boom in 2017: back then, people were buying ideas that could barely be delivered upon. Now people are buying things that give them emotions."
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.