A Complete Breakdown of Popular Music NFT Marketplace Sound
A glance at the business structure of popular Music NFT marketplace platform - sound.xyz
SOUND.XYZ
*UPDATE: THIS IS NOW OPEN TO PUBLIC*
Sound is designed to monetize music more effectively by leveraging NFTs. CEO David Greenstein asked himself “What are ways we can help artists reach more listeners”. As a result, he launched sound.xyz.
The company raised $5M from a handful of investors (both venture capitalists and artists like 21 Savage, DJ Drama).
David claims Sound is an easier way to support the artist directly, rather than streaming music on DSP Platforms. In the Invest in Music Podcast episode, David mentions it would take "30-ish hours of streaming to make an artist $5 on Spotify.” I believe the main point David is making here is that he’d rather be given the ability to do this direct, and in his case, on the blockchain.
A breakdown of the systems involved in Sound
Sound uses a token standard on the Ethereum Blockchain called ERC721A - which “enables minting multiple NFTs for essentially the same cost of minting a single NFT.”
Since their launch in December 2023, Sound.xyz paid $5M USD in revenue paid out to the artists on their platform.
When a music NFT launches on Sound, the metadata is uploaded to a permanent decentralized storage network called arweave.org.
Currently, Sound is in Beta and hand-picking the artists who upload on their platform. Their ultimate vision is to create full-accessibility for all artists.
Their new feature “Sound Swap” is powered by Oxsplits.xyz and allows a one-click collect and sell feature for your song investments. With this feature, artists retain 95% of the primary sale revenues.
Here are some of the artists that recently released on Sound - Snoop Dogg, Andy Milanokis, Spottie WiFi, Nessy The Rilla (Detroit Artist - salute), Daniel Allan, and more.
Sound recently paused their application process for additional artist releases, but has plants to open their platform up to all artists. On their FAQ Page, they claim to be “ironing out the product, scaling, and legal considerations necessary to allow any artist to release their music”.
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