The epidemic scuttled lucrative tours for pop stars. Instead, a number of the world’s largest artists are finding a fresh way to generate money by using NFTs.
Non-fungible tokens are catching on with musicians, including Katy Perry, Grimes, and BTS. They’re creating digital mementos that can’t be counterfeited or imitated. The current hype around blockchain and cryptocurrency has given NFTs a fresh lease of life, with everything from art and fashion to sports memorabilia becoming increasingly popular. In the most recent case, Hybe Co., the firm that runs BTS, announced it would invest more than $400 million in South Korea’s largest cryptocurrency exchange Dunamu to launch NFTs like digital photo cards. The products, according to agency founder Bang Si-hyuk, might be kept, traded, and displayed in a worldwide fan community.
“Soon we will be able to utilize digital photo cards within the platform to build a virtual environment with our avatars, and fans will be able to show each other and artists such a place,” Bang added. “We wish to once again bring together the music industry and cutting-edge technologies in order for fans to get a first-hand look at the future.”
The epidemic has caused a sharp decrease in worldwide touring, which is frequently the primary source of income for musicians. Pop singer Katy Perry announced she would make her performances available as NFTs, while Grammy-winning artist and producer André Anjos released a collection of NFTs connected to his album YOU.
The sector experts say there’s a lot more potential here than simply exchanging photographs.
“BTS has a huge global fan base, and I believe it’s the time for them to do it,” said Kim Shiho, a professor at Yonsei University’s school of integrated technology. “While it’s difficult to know whether they’ll use the blockchain technology to protect their work’s copyright or create a new revenue stream, there’s a lot they can accomplish with it and make money.”
Other major K-pop agencies have also been getting more interested in alternative digital revenue sources, such as NFTs and the metaverse. According to its half-year report, JYP Entertainment Corp. agreed to release NFTs with Dunamu this year. Last year, SM Entertainment Co. launched a metaverse girlgroup aespa’a, while YG Entertainment Inc. said it would introduce NFTs along with its B-boy crew newhousehiphop.
Looking ahead, the industry experts see an astonishing potential in NFTs and blockchain technology for new forms of revenue generation, especially within the music business of Korea which is becoming less reliant on album sales than ever before.
BTS fans, on the other hand, were divided over the news. Some suggested that it was inconsistent of the group to advocate for environmental protection while also promoting an energy-intensive technology.
Lee Sook, a 52-year-old engineer in the semiconductor sector who lives in California, said she shared concerns about the quality of recently produced BTS memorabilia and other goods. However, she’s looking forward to seeing whether BTS will innovate in the metaverse.
“It’ll be determined by what they produce, but I’m willing to buy NFTs connected to BTS if they provide unique tales and experiences.” she added. “If albums include compelling stories and fans are permitted to experience them in a virtual setting, that would be fantastic.”
So, what do you think? Do you support pop stars who have been involved in cryptocurrency? Do you think its a sustainable way of increasing revenue streams for artists? Let us know!
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