Blockchain-powered financial platform Opulous has teamed up with rapper Lil Pump and EDM star KSHMR to let fans invest in the artists’ music via crowdfunding platform Republic.
Opulous founder Lee Parsons has previously told MBW how crypto-based fan-funding “is the inevitable model of the future” and today’s announcement brings further news from this space.
Through the offering of Security NFTs (S-NFTs), a term coined by Republic to describe a non-fungible digital asset, offered and sold as a “security” (as defined by the Securities Act of 1933 and the Exchange Act of 1934), users will be able to invest directly in artists’ music “for as little as $100”.
Republic is an equity crowdfunding platform based in the US, which has facilitated over $500 million in investments from over one million global community members.
Built on the Algorand blockchain, Opulous closed a $6.5 million funding round in June and also recently struck a partnership with cryptocurrency infrastructure provider Binance to let artists sell non-copyright NFTs via Opulous.
Opulous, devised by the founders of DIY music service Ditto, says that the new Republic launch will “radically simplify” the way in which investors can engage with music.
According to Republic’s FAQs, fans investing in music offerings via its platform are typically “buying the music rights through special membership units of an LLC that owns the rights to a song, album or equivalent”.
The FAQs add: “The membership interest may be represented by a non-fungible token (an NFT) which is a representation of that ownership and the vehicle in which returns are distributed.”
Republic explains that returns are earned when the musical asset associated with an investment generates revenues from being streamed and licensed.
Republic says that most returns will be paid out quarterly to a digital wallet.
As part of the first wave of releases, Opulous says that Lil Pump is offering fans the opportunity to invest in his forthcoming single Mona Lisa (feat. Soulja Boy), produced by Jimmy Duval.
Meanwhile, investors will also be able to invest in a forthcoming single from EDM star KSHMR, with further details to be announced soon.
In the coming weeks, Opulous says there will be more star artists who will be offering their music copyright for investment via Republic.
“Mona Lisa is a blast from my past. Now Opulous takes it into the future.”
Lil Pump
Commenting on the project, Lil Pump said: “Mona Lisa is a blast from my past. Now Opulous takes it into the future, Essketit!”
“So I’m excited to team up with Opulous to offer my fans the opportunity to be part of my music and to share in my journey.”
KSHMR
KSHMR said: “Taking pride in my music and creativity is something that has always been important to me.
“So I’m excited to team up with Opulous to offer my fans the opportunity to be part of my music and to share in my journey.
“This new offering will radically change how artists engage with their fans, creating a new era for fan experiences.”
“Instead, our ongoing campaigns on Republic will enable fans to invest directly in the music they love so that they can keep creating and build their career into something sustainable and rewarding.”
Lee Parsons, Opulous
Opulous founder Lee Parsons, added: “Opulous is excited to help artists invest in themselves and their art without the need for mainstream financial support such as banks or label deals that take the majority of money they’re due.
“Instead, our ongoing campaigns on Republic will enable fans to invest directly in the music they love so that they can keep creating and build their career into something sustainable and rewarding.”Music Business Worldwide
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