Last month it was reported that non-fungible tokens (NFTs) had generated over $100m in sales in just 30 days. Now, the technology is starting to gain traction in the music industry.
Justin Blau aka musician and producer 3LAU, sold a NFT collection for $11.6 million via an online auction between February 25-28.
Following the success of that sale, his management company, YMU, says that it is now lining up more NFT auctions for other artists on the company’s roster.
A media release said: “YMU has recognized the potential impact this new technology could have on artist revenue streams and are lining up a number of new NFT auctions for other artists on their roster.”
NFTs use blockchain technology to authenticate and designate an official copy of a piece of digital media that allow artists, musicians, influencers and others to commercialize digital goods, or in other words, digital collectables.
A record of each NFT transaction is kept on a blockchain, making it part of a permanent public record and serving as a certification of authenticity that cannot be altered or erased.
To celebrate the three-year anniversary of his album Ultraviolet, Blau sold 33 NFTs as part of the Ultraviolet Vinyl NFT Collection on Origin Protocol’s Dshop, which is a decentralized marketplace built on the InterPlanetary Filing System (IPFS) and Ethereum.
The top NFT sold during this particular auction, which included an opportunity for the buyer to record a song with Blau, fetched $3.6m, a world record for a single NFT according to YMU, which adds that the total auction take of $11.6m also broke the record for the primary sale of an NFT collection.
To date, Justin Blau has amassed over 1bn music streams with over 300m of those coming from his Ultraviolet album.
An early crypto adopter, YMU says he has made over $12.7m in primary sales from NFT auctions across his 3LAU and SSX3LAU releases.
“NFT auctions offer an exciting opportunity to monetize new aspects of creative output and Justin demonstrated that in a historic way this past weekend.”
Andrew Goldstone, 3LAU
Andrew Goldstone, 3LAU’s Manager and GM of YMU (NYC) said: “Justin is truly a pioneer, having seen the potential of NFT’s years before they were on anyone’s radar.
“His talent and passion are what brought him to this incredible milestone in his career and are what will drive him to even further heights.
“At a time when artist income has been severely impacted due to the loss of touring income and other factors during the COVID-19 pandemic, NFT auctions offer an exciting opportunity to monetize new aspects of creative output and Justin demonstrated that in a historic way this past weekend.”Music Business Worldwide