I read that Kings Of Leon are making history to be the first band to release their album as an NFT.
Apart from getting the album, there are six “golden tickets” on auction, which will give the fans who get these tickets, front row tickets to a Kings Of Leon show for life. In addition, there is another package that includes art from the album and Kings Of Leon past. The band is hoping that these rare and scarce items will go for a large price at auction.
And I was curious as to what an NFT is. Here is a great article over at The Conversation which explains the concept of NFT’s.
NFT’s are Non Fungible Tokens, a digital certificate like those authenticity certificates that collectors require for items they buy. This certificate gives the holder a claim of ownership to the asset and it can be transferred or sold onto others. It’s all underpinned by the blockchain technology.
But things are not what they seem. The person who has paid for an NFT, believes they have “ownership” of a digital asset. But this asset can be copied, pasted and shared, such as a movie or JPEG file or any other file. So in relation to the artwork, the Kings Of Leon fans are bidding for, they will only be owning the digital copy of it.
With any new tech, the carbon footprint is also analysed and NFTs are massive energy consumers, as they depend on a lot of computer power to encrypt the tokens.
Marketing Guru, Seth Godin believes NFT’s are a dangerous trap for people.
His blog post starts with the most ominous of warnings, “Like most traps, they’re mysterious and then appealing and then it’s too late.”
Because if you owned a rare baseball card, you had it in your possession and no one else did. And that is the principle that NFT’s are trying to replicate. The person will own a digital token. And the trap for creators is that most of them would fall into the hustle making their fans believe the art they creat is scarce.
As Godin puts it, “that’s the only reason that someone is likely to buy one–like a stock, they hope it will go up in value”.
But a lot of stocks pay dividends and they come with other benefits and rights, however NFT’s don’t. And people who buy NFT’s may not realise that there’s no limit to the supply. Those lifetime “front row” ticket auctions can be replicated over and over and over again. Godin believes the NFT industry has “bubble” written all over it.
And here is a post over at Vice, talking about the NFT art boom.
While artists deserve the right to make money and monetize their fans, let’s hope that the value the fans believe they are buying remains valuable and it doesn’t get exploited by greed.