NFTs enable artists and creators to monetize their work in brand new ways, yet it is critical that these avenues be carefully evaluated to ensure they are fair, transparent and sustainable.
For example, if an artist created an NFT with trademarked characters or logos from MCU or Disney films, they could face copyright infringement lawsuits from these parties.
Art NFTs (Not For Trading) are an increasingly popular digital collectible that allow artists to gain financial support for their work in a similar manner to when purchasing paintings from galleries. Furthermore, purchasing an NFT also typically grants usage rights such as being displayed or used as a profile picture on social networks.
NFTs can be used to produce and sell digital artwork in marketplaces that operate similarly to an art gallery or auction house, selling unique digital pieces ranging from just a few dollars up to millions of dollars.
NFTs have given rise to a new class of “crypto-artists”, who use blockchain’s power to empower themselves as creators and attract an international audience of collectors. While the market might seem volatile and comparisons with Internet funny money ICO bubble inevitable, NFTs should not be seen as mere passing trends; their true power lies in creating an ecosystem of content creators and empowered consumers across borders.
NFTs have quickly become an invaluable asset to digital music artists. Not only can they provide proof of ownership, but NFTs allow musicians to sell unique, collectible digital assets that can be resold; thus giving artists another source of revenue.
NFTs also enable creators to distribute royalties directly to fans – a potentially controversial practice if it crosses into regulatory territory – but provide an exciting use case nonetheless.
Kings of Leon were one of the first major bands to introduce NFT albums in 2021 with When You See Yourself on Yellowheart, offering rewards like preferred seating at live shows, special album artwork and differentiated art. Fans can connect more closely with their favorite artists than ever before thanks to this opportunity; similar to football trading cards where popular kids may sell rare cards during break time, NFTs may become another form of social currency for music fans that could prove beneficial for industry development.
Utilizing membership-driven non-financial transactions (NFTs) offers businesses and fans alike a wealth of monetization opportunities and solidifies fan loyalty. As demonstrated by successful projects such as Bored Ape Yacht Club and World of Women, communities showing willingness to fund projects using NFTs is testament to its value as an engagement tactic.
Some NFTs may simply serve as profile pictures or social media coats of arms; others bring real world art into the Web3verse through NFT marketplaces and auctions. Furthermore, unlike physical art which may deteriorate with age due to bit rot or physical wear and tear, NFTs will always remain preserved due to blockchain’s immutability.
NFTs provide artists with new art communities and audiences they cannot always reach through traditional galleries; this has led to sales of NFT art on platforms like OpenSea and gmoney quadrupling to over $14 billion by 2021.
The NFT art market is one of the most sought-after and well-performing subsectors of crypto collectibles ecosystem. Art-related NFTs can fetch thousands of dollars or even more; even large auction houses such as Christie’s are participating.
NFTs relating to art can act as membership cards for online communities, providing access to investment research and future NFT drops as well as ownership rights over websites or social media channels. Most often these NFTs are administered and programmed by teams instead of individual artists, and often possess extensive licensing rights.
Just as art galleries have long served as intermediaries between artists and collectors, NFT marketplaces allow more artists to bypass galleries altogether and sell directly to collectors. For artists who may feel marginalized in the art world, this opportunity presents itself to share their stories and reach a global audience.