Greg Oakford, co-founder of NFT Fest Australia, predicts that more musicians and entertainers will start creating digital collectibles as concert merchandise. This trend was exemplified by Snoop Dogg’s announcement of the Snoop Passport, a concert tour collectible that evolves over time. Oakford believes that these digital collectibles tap into the nostalgia and sentimental value that fans have for their favorite artists, similar to dusting off an old concert T-shirt or looking through a shoebox of ticket stubs. However, physical memorabilia can deteriorate over time, whereas blockchain-based digital goods offer durability.
From a musician’s perspective, there are several benefits to embracing digital collectibles. They can use these tokens to offer exclusive and dynamic content to their fans, create a new line of digital merch alongside physical merchandise, and engage more deeply with their audience through new experiences and access. Additionally, artists can collaborate with Web3 and digital artists, building on the long-standing tradition of collaborations in the hip hop industry. By minting and selling these digital collectibles, they can generate a new revenue stream and also earn royalties on secondary sales.
For fans, digital collectibles provide a way to experience nostalgia through blockchain-based collectibles. They gain access to dynamic content and exclusive behind-the-scenes experiences. They have the opportunity to discover new artists and collaborations and can participate in drops, events, and other unique experiences. Furthermore, owning digital collectibles allows fans to express their fandom and integrate it with their digital lives, including social media. They can also trade these digital collectibles on secondary NFT markets.
In the NFT art market, one notable example is artist Dmitri Cherniak’s piece “The Goose” from the Ringers generative art collection, which sold for $6,215,1000 at a recent Sotheby’s auction. The initial price was only $131, showing the tremendous price appreciation that NFTs can offer. Sotheby’s, an established auction house, has embraced the world of NFTs and digital art. The success of their Grails II auction, which exceeded expectations and attracted new collectors, demonstrated the growing interest in NFTs in the art world.
Sotheby’s believes that digital art and NFTs are a natural extension of their fine art strategy. They have successfully attracted new collectors, many of whom are younger than their typical clientele. The ability to livestream auctions and the excitement generated by events like the sale of the U.S. Constitution demonstrate the appeal of auctions to the crypto and NFT community. Sotheby’s applies the same revenue model to their digital art auctions as their physical art auctions, and their brand helps to attract premium prices for artists.
In addition to auctions, Sotheby’s has launched a generative art program, starting with Vera Molnár, a 99-year-old pioneer in generative and computer art. This program will feature 500 unique artworks sold in a Dutch auction format, marking a significant milestone for Sotheby’s.
As more artists and collectors embrace the world of NFTs and digital art, the possibilities for creativity and connection between artists and fans continue to expand. The durability and uniqueness of blockchain-based digital collectibles offer a new way to preserve and experience moments of nostalgia, while also providing opportunities for engagement, collaboration, and revenue generation in the music industry.