Cryptocurrency Exchange Korbit Research Center: "Music NFTs Can Improve Revenue Structure"

[Photo by Kobit]

[Asia Economy Reporter Lee Jung-yoon] On the 12th, the Kobit Research Center, under the domestic cryptocurrency exchange Kobit, announced that it has translated and published a report by the U.S. cryptocurrency analysis firm Messari titled "How Can NFTs (Non-Fungible Tokens) Be Used in the Music Industry?"

Messari first pointed out that the traditional music contract system, where record labels earn more revenue than artists, is unfair. It analyzed that the music NFT market proposes a model where fans directly invest in artists through smart contracts, and artists secure revenue sources.

By utilizing venture DAOs and collector DAOs, which fans can directly form or participate in, fans can now invest directly in music NFTs without going through record labels. Additionally, Web 3 streaming platforms like Audius provide artists with higher revenue per stream.

Furthermore, it explained that NFTs can be applied to music in various forms such as tokenization of individual tracks or entire albums, social tokens, and royalty tokenization.

Messari stated that although the music NFT market is still small, top artists have already entered the market. It emphasized the need to observe how NFTs will be utilized in the next-generation music industry as demand for music NFTs grows.

Jung Seok-moon, head of the Kobit Research Center, said, "(By utilizing music NFTs) artists can exercise ownership directly without intermediaries and access fans, improving the revenue structure for artists' shares in a fairer way," adding, "We hope this report helps investors understand the value proposition of NFTs from more diverse perspectives."

This content was produced with the assistance of AI translation services.