Our platform is built on allowing the non-superstars to be able to leverage their IP and make money from it. It doesn’t have to be the primary artist that’s doing a deal, there might be someone else that owns a small piece of it. Unless you’re in that space and know all the nuance to it, selling music royalties and publishing is a confusing space for people.Ī lot of people don’t realize that when there’s a song out, there’s multiple people who own a piece of that song. Can you tell us a bit more about the A Tribe Called Quest NFT situation? How did the opportunity arise, and where did it go awry? In that way, it’s the ultimate in authentication and transparency. You see when it was originated, who the original owner was, who the seller was, who bought it and who currently owns it.Īny transaction that happens throughout its lifecycle, forever, is going to be recorded in a digital ledger that anyone can look up. It’s transparent because on the blockchain, everything is on a public ledger. We’re just applying blockchain technology to something that we’ve already been doing, which is catalogue sales. That’s how we’re doing it a little differently than what people would normally think of as an NFT. When you buy one of our NFTs, you’re actually going to get paid just by holding it. It’s much more based in reality and facts, and it’s an income producing entity. We say ‘it’s worth this much, and this is what you should pay for it’. It’s based on, the last 12 months of a portion of the publishing that you’re buying. When we sell an A Tribe Called Quest NFT, we’re not expecting millions of dollars in a sale, because it’s not based on that kind of value. It’s not a collectible that’s based on a speculative value, it’s really just a digital representation of an asset that has an underlying value already. What we’re doing with Royalty Exchange is applying NFTs to music. Traditionally, in the music business, there is a lack of transparency.Įverything is so fragmented, but blockchain solves a lot of these inherent problems. That has really practical applications for the music industry. That’s great too, but people don’t understand that it’s really just based on blockchain technology. With the initial boom of NFTs, everyone thinks of them as these digital collectibles within the art sense of it.
Here, Martini talks to MBW about his predictions for the NFT marketplace, and how the Tribe Called Quest deal went down… What are your short and long term predictions for the buying and selling of digital assets within the music industry? And how big can the market get?
So, what went awry? And, given how the music-related NFT market is arguably still in a nascent stage, can we expect more situations such as this one to arise in future? He explained that the share originated from a deal ATCQ signed at the start of their career. If the band were aware, he said, they would have bought it themselves. The NFT eventually sold to someone with the username ‘Stephen F’ for a winning bid of 40.191 ETH, equivalent to $84,765, but t he band’s Ali Shaheed Muhammad took to Facebook to say the band knew nothing about the auction, and wasn’t aware that such a share in their albums existed. Then, in July, Royalty Exchange auctioned off a 1.5% share of the sound recording royalties from A Tribe Called Quest’s first five studio albums as an NFT. The auction eventually closed at 9.209 ETH, equivalent to $23,209. The platform’s first publishing catalog NFT auction came on June 8, with a share in the 2x platinum song Save Dat Money, by rapper Lil Dicky. But is this current rush for dizzyingly priced digital works sustainable in the long-term? Royalty Exchange says that its USP is that NFTs sold via its marketplace are income-generating for the buyer, not simply a collectible to store on a hard drive.
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