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👩🎤 Music NFTs are all the rage
The Golden State Warriors are offering royalties in their theme song?
Jonah Schulman
August 22, 2022
The Security Token Market's first-of-its-kind Web3-enabled crowdfund on the Avalanche blockchain continues to trek on! 🔺
In fact, 73 people from 12 different countries and 4 continents have invested!
The button works this time ˆ
Gooood morning, Rainmakers! ☀️
As always, I have two captivating topics for you to dive into:
1️⃣ 👩🎤 Music NFTs are all the rage: Music NFTs are cool, but are they cool if they are uncompliant? Also, Tyga and K-Pop artists are doing music NFTs now!
2️⃣ 📊 Security Token Market Data Partnership: Check out everyone we've partnered with on the data side of our business!
Without further ado, it's time to…
Get liquid 💧
👩🎤Music NFTs are all the rage
Music NFTs seem to be all the rage in the industry.
But, do music NFT holders know that they either are holding an unregistered security or something with zero economical rights to the artist?
Maybe, maybe not.
After observing and investing in NFTs with my security token background, I've developed a healthy perspective on the whole NFT extravaganza.
In my opinion, NFTs are best used as a vehicle for holders to access a specific community, person, artist, or any type of IRL (in real life) benefits.
99% of NFTs that are just pictures will die off because the value is derived from the hype and newness of the technology.
NFTs are no esoteric idea, they are simply a Web3 version of membership and the ones that will succeed are the ones that will stand the test of time.
If crypto dies what happens to the project?
Now, let's talk music NFTs.
I'd break down NFTs into two types:
Access
Securities
When I say access I am referring to the NFTs that simply give the holder access to the artist whether that means tickets to a concert, unreleased songs, talking to them, etc.
When I say securities, I am inferring that holders have the rights to royalties or some sort of ownership in the artists' music.
I do want to preface that I believe this is a super cool way to monetize music and I fully support it.
Compliantly, we've seen artists like Lil Pump and Kyle do this successfully with both of them raising several hundred thousand through crowdfunding portals Republic and WeFunder.
Uncompliantly, we've seen 3LAU just completely ignore securities laws and team up with some of the biggest artists in the world by offering token holders royalty rights to their music.
They even went as far as to imply that these investments will go up, directly on their website with zero disclosures stating:
"Collectors can claim royalties for the music they own after they’ve accrued. When artists grow, everyone wins."
I know, I know, it was a tough read for me too.
Now, I am not a lawyer, but I also have a very good understanding of securities laws.
I like what Royal is doing, but it's just unfortunately illegal.
The next music NFT token on my radar is the MMT (Meta Music Token), which in my opinion is the more attractive of the music NFT royalty-backed tokens I've seen.
Not only is it compliant, but the token also gives investors rights to royalties from 6 different songs and 7 different artists!
In case one of the songs or artist flops, one of the songs is bound to do better.
MMT represents the rights to future revenue streams coming from music royalties generated from top-tier artists’ latest songs.
The portfolio itself includes 6 songs from top-tier artists who are famous around the globe including Tyga, CL, Jay Park, BamBam, PENTAGON, AB6IX, and Kim Se-Jeong.
On top of that, one of the songs "Wheels up" is a collaboration of BamBam, MAYZIN, Golden State Entertainment (GSE), and NewStyle Media Group!
BamBam, a global ambassador for Golden State Entertainment and the Golden State Warriors, debuted “Wheels Up” during a halftime performance of a Golden State Warriors game on April 7!
So, in summary, the Golden State Warriors are kinda in the tokenization game now.
Let's take a look at the terms:
Ticker: MMT
Blockchain: Algorand
Hard Cap: $3,300,000
Available Investors: Accredited US Investors
BD: Texture Capital
Public Launch Date: TBA
Learn more about their offering here:
📊 Security Token Market Data Partners
For the past four years, the Security Token Market data team has been scouring the internet to bring transparency to all primary and secondary data for security tokens.
We have curated and aggregated the largest repository and longest track record of secondary trading data going back until 2019 for security tokens trading compliantly around the globe.
With visitors from 210 countries and territories and over 30 million data points on our website, we are growing exponentially every day.
We want our users and visitors to have the best security token data set at their disposal, which is why we have decided to partner up with leading ecosystem providers to ensure our users get the best data in class!
Let's take a look at some of the latest partners we've joined forces with:
RealT, Archax, Aktionariat, Stobox, and CryptoSX!
RealT is growing a global real estate portfolio easily and affordably through the Ethereum blockchain. Read about the partnership here.
Archax is a global, regulated, digital asset exchange, brokerage, and custodian based in London.
Aktionariat is offering digital tools for Swiss companies to create a market for their shares on their own website. Read about the partnership here.
Stobox allows businesses to issue digital securities to attract capital from a global community of investors. Read about the partnership here.
CryptoSX is a security token exchange authorized by CEZA (Cagayan Economic Zone Authority) for STOs and Crypto/Fiat conversion services. Read about the partnership here.
If your company wants to partner with us, please reach out to [email protected] or [email protected] and we will see if there are any synergies there!
💦 What else is Drippin’
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Ovenue Extends Its Real-World Assets Tokenizations Capabilities Through Acquisition of Irident: Ovenue has over $400M valued on-chain now!
2022 H1 Review - Security Token Show: Episode 153: Check out last week's episode reviewing the first half of the year!
Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.