NFTs
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February was a big month for music and NFTs. Spotify plugged into Web3 with a token-gated playlist experiment, while Def Jam Records signed a virtual band. Snoop Dogg returned with a fresh NFT drop and Rihanna fans got the chance to own streaming royalties in “Bitch Better Have My Money,” right in time for her Super Bowl halftime show — although the NFT drop was not without controversy.
Overall, crypto prices crept higher in February, with Ethereum now up 46% from the start of the year. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in February 2023.
1/ Rihanna – “Bitch Better Have My Money”Monthly trading volume: $532,452Primary sales (Feb.): $63,000Secondary volume: 284 ETH ($469,452)Drop date: Feb. 9
While Rihanna was making history at the Super Bowl, her music was making headlines in the NFT space. A portion of streaming royalties in her track, “Bitch Better Have My Money”, were sold via NFTs on Web3 platform Anotherblock, netting $63,000 in sales and a further $469,452 in secondary trading volume. The hype was amplified as Rihanna opened her Feb. 12 halftime set with the track, sending global streaming figures 594% higher in the week ending Feb. 16.
The NFT drop was controversial, though. It was not officially endorsed by Rihanna; instead, the royalties were unlocked through producer DEPUTY’s share in the track, and it’s unknown whether Rihanna was aware of it. The NFTs also quadrupled in value on the secondary market, shooting far beyond logical expectations for return based on the streaming calculations.
The collection was later halted on OpenSea for “promising fractional ownership and future profit based on that ownership” — something OpenSea doesn’t allow — proving that NFT projects positioning themselves purely as investments are still at risk of regulatory scrutiny.
View the collection on OpenSea.
2/ Violetta Zironi – “Another Life”Monthly trading volume: 167 ETH ($276,552)Primary sales (Feb): ~110 ETH ($182,160)Secondary volume: 57 ETH ($94,392)Drop date: Feb. 17
After a successful genesis drop last year, singer-songwriter Violetta Zironi returned in February with a new collection, Another Life — an EP encompassing five tracks and 5,500 unique profile picture illustrations. Holders get access to virtual shows, live concerts and the ability to use the songs for their own projects. To celebrate the drop, Zironi hosted a 14-hour Twitter Spaces marathon with her community.
View the collection on OpenSea.
3/ Kids of the ApocalypseMonthly trading volume: 10748 SOL ($243,979)Primary sales (Feb): 6,666 SOL ($151,318)Secondary volume: 4082 SOL ($92,661)Drop date: Feb.. 9
Several years in the making, Kids of the Apocalypse (KOTA) is an ambitious, immersive music NFT project built on the Solana blockchain. It features graphic novel characters, dystopian storylines and a dark-pop soundtrack from veteran Swedish producer Stefan Storm, previously of pop duo Sound of Arrows. KOTA is now the biggest music NFT project on Solana, a blockchain that offers faster speeds and cheaper transaction fees than Ethereum.
View the collection on OpenSea.
4/ MyFi Studio – “Wind Tunnels” + “Circles Are Bad”Monthly trading volume: 94.48 ETH ($156,458)Primary sales (Feb): 70.33 ETH ($116,466)Secondary volume: 24.15 ETH ($39,992)Drop dates: January 2023 (“Wind Tunnels”) and February 2023 (“Circles Are Bad”)
“Wind Tunnels” and “Circles are Bad” are innovative NFT instruments that you can play and interact with in real-time. They are fully coded onto the Ethereum blockchain itself, which is a significant departure from most music NFTs, in which music is typically stored on an external server while the NFT simply contains a link to the music. “Wind Tunnels” and the follow-up drum machine project “Circles are Bad,” however, are fully coded onchain.
View the “Wind Tunnels” and “Circles Are Bad” collections on OpenSea.
5/ Shilly: The Access PassMonthly trading volume: 82 ETH ($135,792)Primary sales (Feb.): N/ASecondary volume: 82 ETH ($135,792)Drop date: Jan. 31
Shilly — a Bored Ape that makes chaotic pop-punk records — dropped a series of access passes in January, letting the community get involved in music releases. The most exclusive pass, the Band Pass, gives fans the opportunity to work on music with Shilly and even feature on tracks. The project was incubated by Universal Music’s NFT imprint Probably a Label.
View the collection on OpenSea.
6/ KINGSHIPMonthly trading volume: 76 ETH ($125,856)Primary sales (Feb): N/ASecondary volume: 76 ETH ($125,856)Drop date: July 11, 2022
The Bored Ape supergroup was part of a new pilot experiment with Spotify in February, through which KINGSHIP Key Card holders can now access an exclusive ‘token-gated’ playlist on the streaming platform. The news triggered a fresh wave of buying activity in the KINGSHIP collection, which captured 76 ETH in volume last month. Spotify has partnered with a total of four projects in the NFT space to test the new feature.
View the collection on OpenSea.
7/ Snoop Dogg – XYZMonthly trading volume: 45.2 ETH ($74,851)Primary sales (Feb): 44 ETH ($72,864)Secondary sales: 1.2 ETH ($1,987)Drop date: Feb. 3
Snoop Dogg returned to Web3 to capitalize on one of the biggest current trends in the space: open editions. Rather than a fixed supply of NFTs, with open editions — which are typically sold at a lower price to make them more accessible to collectors — fans can mint as many editions as they want within a set time frame. Web3 music pioneers RAC and 3LAU both dropped open editions this month, but Snoop Doog blew the doors off. The rapper sold more than 10,000 editions in a 3-day period via Sound.xyz. Snoop Dogg’s “XYZ” sold for 0.0042 ETH (about $7) each, totaling more than $70,000.
View the collection on OpenSea.
8/ Sammy Arriaga – “Metagirl (remix) featuring Nessy the Rilla”Monthly trading volume: 30 ETH ($49,680)Primary sales (Feb): 30 ETH ($49,680)Secondary volume: N/ADrop date: Feb. 25
Following in Snoop’s footsteps, independent country artist Sammy Arriaga also launched an open edition on Sound.xyz in February, aiming to beat Snoop Dogg’s 10,000 sales with a series of NFT incentives. The biggest collector will receive a special reward, while the rest will be entered into a lottery to win a valuable NFT. At the time of writing, Arriaga has generated 5,000 sales. One collector purchased more than 1,000 NFTs, briefly becoming Sound.xyz’s biggest all-time collector in terms of NFTs held.
View the collection on OpenSea.
9/ Tycho – “The Science of Patterns”Monthly trading volume: $19,000Primary sales: $19,000Secondary volume: N/ADrop date: Feb. 25
Electronic producer Tycho reissued his 20-year-old EP, The Science of Patterns, in February as a digital release for the first time. As a twist, the record is only available as an NFT through Tycho’s Web3 fan club portal. Powered by Web3 tech company Medallion, the multitrack album format is brand new to Web3, allowing fans to stream the entire album within the NFT itself, unlike previous album NFTs which simply unlocked access to music elsewhere.
10/ WVRPSoundMonthly trading volume: 11.09 ETH ($18,365)Primary sales (Feb): N/ASecondary volume: 11.09 ETH ($18,365)Drop date: January 17, 2022
WVRPSound is the biggest music NFT project ever in terms of trading volume. Since launching in January 2022, the collection of AI-generated music and animated characters have earned more than 6,000 ETH in volume (approximately $7.3 million). The project recently announced plans to launch playable versions of its characters in The Sandbox metaverse.
View the collection on OpenSea.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between Feb. 1 – Feb. 28, 2023. Conversion rates from crypto to US dollars were calculated on Feb 28.
Spotify is experimenting with “token-enabled playlists,” meaning users in possession of non-fungible tokens (NFTs) can connect their wallets and listen to collections of music put together by the likes of Overlord (a company developing blockchain-based games) and KINGSHIP (Universal Music Group’s Bored Ape band). Android users in the United States, United Kingdom, Germany, Australia and New Zealand can now test the new feature.
“At Spotify, we routinely conduct a number of tests in an effort to improve our user experience,” a spokesperson for the streaming platform said in a statement. “Some of those end up paving the path for our broader user experience and others serve only as important learnings. We have no further news to share on future plans at this time.”
Spotify CEO Daniel Ek discussed blockchain technology — which enables the creation of unique digital files that are also uncopyable — on the Culture: Now Streaming podcast in 2019. “The most important thing is it will enable paying for things digitally in many of the places around the world where those kind of methods just doesn’t exist,” Ek said. “A service like Spotify, you can imagine what would happen by allowing users for instance to be able to pay artists directly. That can open up massive opportunities where all of a sudden, a user in Japan might pay a creator in Argentina. And that opens up huge opportunities for how we can further our mission.”
Last year, Spotify started allowing “a small group of artists [to] promote their existing third-party NFT offerings via their artist profiles,” according to a statement from the company. (At the time, Spotify reiterated that it “routinely conduct[s] a number of tests in an effort to improve artist and fan experiences” some of which “serve only as an important learning.”)
Steve Aoki and The Wombats were among those testing the feature, which was made available to Android users in the U.S.
Napster announced that it acquired Mint Songs, a music NFT marketplace that aims to help artists establish a thriving Web3 presence, on Wednesday (Feb. 15). The acquisition brings together a streaming service with a platform focused on creating digital collectibles.
Jon Vlassopulos, CEO of Napster, said in a statement that Mint Songs “have done groundbreaking work helping thousands of artists get their start in Web3, reach their fans in new creative ways through collectibles, and unlock significant new revenue streams.”
“We feel that the natural next step for the Napster service is to include collectibles that fans can get as rewards for engaging with artists they love or that they can purchase to collect and share,” he added to Forbes. “We already have hundreds of thousands of artist storefronts where our fans go to listen to music every day so adding collectibles is very contextual in the fan experience.”
Garrett Hughes, co-founder and CTO of Mint Songs, said in a statement that Napster has “the vision to finally take Web3 music to the mainstream.” “Our goal all along has been to create deep, engaging, and innovative ways for artists to connect with fans that also offer them an opportunity to monetize that fandom,” he continued. “Conversely, we see a demand from fans for a music service to offer more than just on-demand music and podcasts, which makes Napster’s ambitious goals all the more attractive.”
Mint Songs’ Nathan Pham will join Napster to lead Web3 product initiatives, while Hughes will serve as an advisor to the company and “work closely with Vlassopulos to integrate Mint Songs’ technology into the Napster platform,” according to the acquisition announcement.
Last year, Napster was acquired by a pair of companies with Web3 experience: Hivemind and Algorand. Vlassopulos, who had spent close to three years at Roblox, took over as Napster CEO in September. “We want to bring the community together and enable the artists, with the data we have, to activate their communities around things like access to physical events and digital experiences,” he said at the time. Napster then launched Napster Ventures for the purpose of acquiring Web3 music startups.
Matt Zhang, founder and managing partner of Hivemind, applauded the Mint Songs acquisition on Wednesday. “We are excited for Napster to be a central player in the music Web3 ecosystem and acquiring Mint Songs is a great foundational step,” he said in a statement. “The combination of Napster’s continued innovation that powers the platform currently along with Mint Songs’ technology IP and expertise, will help drive Web3 innovation for the music industry.”
Former Warner Music Group (WMG) CEO Stephen Cooper has joined the board of directors for Web3 company OneOf, it was announced Wednesday (Feb. 15).
“I am excited about how technology can reshape the future of music, entertainment and business models for many industries,” said Cooper in a statement. “OneOf has a stellar team and deep expertise in providing next generation Web3 technology to enterprises and brands. I look forward to serving on OneOf’s Board of Directors to help guide and accelerate their growth.”
During Cooper’s time as WMG CEO, the company became the most aggressive of the three major labels in embracing Web3 and the metaverse. Under the guidance of chief digital officer/executive vp of business development Oana Ruxandra — who Cooper first brought to WMG in 2012 and who returned in 2018 following a two-year stint at UMG — the company forged partnerships with and/or invested in NFT platforms like Blockparty and The Sandbox, avatar tech company Genies, immersive tech company Wave, blockchain startup Dapper Labs and OneOf, which signed a deal with WMG in January 2022 to create exclusive NFTs for the company’s artists.
In addition to its B2B pursuits, OneOf has a consumer-facing Web3 marketplace, OneOf.com, which is home to digital collectibles for artists including Doja Cat, The Notorious B.I.G. and Whitney Houston.
Cooper’s tenure as WMG CEO lasted from August 2011 to January 2023, when he was succeeded by former YouTube chief business officer Robert Kyncl. Prior to WMG, Cooper served as CEO of Metro-Goldwyn-Mayer (MGM), CEO of Hawaiian Telecom, executive chairman of Blue Bird Corporation, executive chairman of Collins & Aikman Corporation, CEO of Krispy Kreme Doughnuts and CEO/chief restructuring officer at Enron Corporation.
“We are thrilled to welcome Steve to join our board and leadership team,” said OneOf founder/CEO Lin Dai. “Web3 will revolutionize how brands connect with the consumers of the future. Steve’s expertise across music, entertainment, and consumer brands is the perfect addition to OneOf’s leadership team. With his guidance, we look forward to advancing our mission to lower the barriers to entry into Web3 for enterprises and consumers alike.”
Universal Music Group’s Def Jam Recordings is the latest major label imprint to venture into Web3 through the launch of a virtual band, The Whales. Comprised of cartoon NFT whale characters, the group’s debut full-length album has an all-star cast of producers and songwriters attached.
The deal is a partnership with The Catalina Whale Mixer, a collection of 5,555 NFT avatars on the Solana blockchain. Created by tech studio WAGMI Beach in December 2021, the concept of The Whales was born when co-founders Ben Willis and Joshua Andriano met with Def Jam’s DJ Mormile and Ryan Rodriguez. “We pitched the idea of a community-grown avatar group to DJ and [they] just got it,” says Willis. “To be working with Def Jam on releasing this one-of-a-kind new music project is a dream come true.”
Def Jam has not yet confirmed the musicians behind the project but says it will involve a “who’s who” of musical talent. The Whales’ first project will be released as a full-length album, while the group will tap into the broader Catalina Whales Mixer community to deepen the relationship between music and Web3 culture.
The virtual artist NFT playbook is becoming a trend among bigger record labels. The same concept was executed by 10:22PM — another Universal Music Group imprint — which licensed characters from the Bored Ape Yacht Club to create the animated band KINGSHIP. Warner Records’ Web3 subsidiary Probably a Label is also developing a virtual artist in collaboration with its 5,555 NFT holders through a voting system.
The team at WAGMI Beach — whose founders are music industry veterans themselves, previously at management company Indie Pop — believes this model will improve the way artists and labels engage directly with fans by letting them be part of the process. “At the core of all the NFT and Web3 attention is a fundamental technology change that will alter how music and art is consumed by generations to come,” said co-founder Alec Lykken. “This is our initial dive into what we believe to be an incredible new wave for artists and fans alike.”
Patrick Moxey is bringing the entire roster of Helix Records, the EDM label he launched last year after selling his stake in Ultra Records, into the world of Web3 — starting with an NFT membership pass.
Starting in February, the Helix Records Genesis Pass will act as a digital passport to the Helix ecosystem and grant holders a free music NFT from one of the roster’s flagship artists, which includes electronic duo Snakehips and house DJ Marshall Jefferson. Later in 2023, NFT holders will get the chance to access VIP tickets, backstage passes and submit music directly to the label for feedback. One holder will win a 1:1 conversation with Moxey.
Moxey — who played a key role in the success of Avicii, Kygo, deadmau5 and David Guetta through Ultra Records — aims to make Web3 and NFTs a foundational part of the new venture.
“I hope to make a company that’s much bigger than my last company within the next five years,” he said. “We really plan on making NFTs open a whole new door for you [the fan] that go way beyond the door that was available through the traditional record business.”
Helix Records will onboard its entire roster of electronic artists into Web3 and support them through the transition to NFTs and blockchain technology. The label believes this strategy will build a closer connection between artists and fans, and potentially enable supporters to benefit from the future success of their favorite acts. The label also hopes that NFTs will give them better insights into their artists’ fan bases, allowing them to identify and connect with the biggest and most active community members.
To power the label’s Web3 activations, Helix Records has partnered with FUEL — a software platform which enables artists and labels to build their own NFT storefront and control their branding. Billed as “Shopify for NFTs,” musicians have used the software to sell concert tickets, singles and collectibles to Web3 and Web2 fans.
“We are super happy to add Helix Records to our roster of musicians,” said FUEL founder Thanh Binh Tran. “Seeing pioneers like Patrick use our software gives us a glance at the future of music NFTs.”
While the Web3 hype has mostly died down since the dizzying NFT sales of 2021 and early 2022, artists and labels still see some promise in blockchain technology.
“Any way of making money for a musician is a blessing, because there are so few possibilities left,” said Marshall Jefferson, house DJ pioneer and one of the flagship artists on Moxey’s new label group. “An open area like this where your music actually has value and you can make a living of is an area worth exploring.”
The Helix Record Genesis collection will launch in February. The final date and details on supply and pricing will be announced shortly.
NFTs had a wild 2022. January began with euphoric highs and a record $4.8 billion traded on OpenSea. By contrast, December ended the year with a hangover — volumes down by 95% with just $283 million traded in the month.
Still, the crypto winter hasn’t deterred musicians from embracing Web3. December saw an uptick in music NFT activity thanks to legacy artists Armin van Buuren and Styles P, as well as high-profile drops from crypto-native musicians like 3LAU and Daniel Allan. The first “billion club” NFT was released, unlocking streaming royalties in a track with more than a billion Spotify plays. Meanwhile, the independent scene continued to flourish with a seventh-straight month of rising volume on Sound.xyz – the largest platform for independent musicians.
Across the 10 biggest music NFT projects tracked by Billboard in December, sales volume was up 28% in ETH terms (751 ETH) and 23% in dollar terms ($949,781) from November. Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in December 2022.
1/ Styles P – “The Farmacy Fantoms”Monthly trading volume: 205 ETH ($249,280 at month-end conversion rate)Primary sales: 170 ETHSecondary sales: 35 ETHDrop date: Nov. 28
The Farmacy Fantoms is a music NFT project by rapper Styles P. The collection of 6,666 animated ghost characters come with different visual traits and one of ten different tracks. In the future, holders will also get access to events and discounts on Styles P brand products.
View the collection on OpenSea.
2/ Armin van Buuren – “Armin’s All-Access (AAA)”Monthly trading volume: $210,120Primary sales: $189,448Secondary sales: 17 ETH ($20,672)Drop date: Dec. 13
Superstar DJ Armin van Buuren launched an all-access pass in December, granting NFT holders entry into a Web3 fan club community. The NFT unlocks an exclusive section of the DJ’s Discord server, as well as access to unreleased tracks, studio livestreams and exclusive events. Each NFT comes with music by the Dutch producer and 10 variations of digital artwork by Rik Oostenbroek. The duo sold 952 passes in December, at $199 each.
View the collection on OpenSea.
3/ Reo Cragun x Daniel Allan – “Criteria EP”Monthly trading volume: 138.67 ETH ($168,622)Primary sales: 94.247 ETHSecondary sales: 44.324 ETHDrop date: Dec. 15
Two of the biggest names in the independent music NFT scene teamed up to end the year with a bang. Criteria is an 8-track EP fusing electronic production from Allan and hip hop vocals from Cragun – who previously collaborated on Flume’s “Quits” EP. In December, the duo released 2,500 NFTs with a unique rarity structure. The rarest track, “Criteria,” has just 25 editions making it significantly more valuable than the most common track, “Supercharged” with 1,000 editions. “Supercharged” has a floor price of 0.056 ETH ($68) on secondary markets while the rare “Criteria” has a floor price of 3 ETH ($3,648).
Criteria was the largest ever drop on music NFT platform Sound.xyz, and despite the broader bear market in crypto, the drop sold out in approximately an hour. The collection was heavily supported by the leading music NFTs collectors, or “whales,” — many purchased more than 100 each.
View the collection on OpenSea.
4/ Violetta Zironi – “Moonshot” / “Gypsy Heart”Monthly trading volume: 59 ETH ($71,744)Primary sales: 40 ETHSecondary sales: 19 ETHDrop date: April 2022
Violetta Zironi is establishing herself as one of the most consistent independent artists in the space, appearing in this top 10 for four of the last seven months. Her debut “Moonshot” collection — featuring artwork from her father, Disney animator Giuseppe Zironi — continues to generate strong sales on OpenSea with 19.24 ETH traded in December.
Her new collection Gypsy Heart is now being rolled out to existing fans and holders through an early access mint pass. Zironi sold 500 mint passes in December (out of a total 5,000), generating 40 ETH. The project will go live to the public in January.
View the collection on OpenSea.
5/ 3LAU – “Too Late for Love”Monthly trading volume: $58,839 (48.3 ETH)Primary sales: $58,839Secondary sales: N/ADrop date: Dec. 14
Electronic producer and DJ 3LAU set records back in 2021 with an $11.6 million NFT sale. Since then, he launched the Web3 music platform Royal, allowing fans to own a percentage of streaming royalties in tracks by The Chainsmokers, Diplo and others.
In December, 3LAU released his first single of the year, and his first NFT drop since 2021, “Too Late for Love.” Released via his platform Royal, the producer sold 330 gold tokens, each representing 0.1165% of streaming royalties in the track, and three diamond tokens, each granting 3.8488% of streaming royalties as well as backstage access to 3LAU events for life.
6/ Offset and Metro Boomin – “Rick Flare Drip”Monthly trading volume: 42 ETH ($51,072)Primary sales: 39 ETHSecondary sales: 3 ETHDrop date: Dec. 1
The first ever NFT from Spotify’s “Billions Club.” “Rick Flare Drip” has more than 1 billion streams on Spotify, and now fans can own a small piece of the future streaming revenue. The royalties were unlocked through a partnership with Bijan Amir — one of the producers on the track. “This is my first foray into Web3 and crypto,” said Amir. “I wanted to do something meaningful when I did. I love the idea of fans getting a share of my rights, instead of me selling a share of my masters to some investor.” The NFTs were sold via Anotherblock, a Web3 platform that sells streaming royalties in some of the world’s biggest tracks.
View the collection on OpenSea.
7/ KINGSHIP – “Key Cards”Monthly trading volume: 25 ETH ($30,400)Primary sales (in Dec): N/ASecondary sales: 25 ETHDrop date: May 2022
The Bored Ape supergroup secured its seventh-straight month in this top 10 thanks to consistent sales on secondary markets like OpenSea. In December, the group began teasing video footage from the studio where producers Hit-Boy and James Fauntleroy are currently working on the band’s music.
View the collection on OpenSea.
8/ Rae Isla – “Rocks”Monthly trading volume: 23 ETH ($24,320)Primary sales (in Dec): 20 ETHSecondary sales: 3 ETHDrop date: Nov. 28
Independent singer-songwriter Rae Isla was featured in November after selling the first 600 NFTs from her “Rocks” project — a collection of 1,000 NFTs made up of four tracks, each with different rarities and artwork released through Nifty Music — a music NFT accelerator. Isla returned to the top ten in December after selling the remaining 400 and capturing a further 3 ETH in secondary sales on OpenSea.
View the collection on OpenSea.
9/ WVRPS by WarpsoundMonthly trading volume: 20 ETH ($24,320)Primary sales (in Dec): N/ASecondary sales: 20 ETHDrop date: January 2022
WVRPSound is the biggest music NFT project ever in terms of trading volume. Since launching in January last year, the collection of AI-generated music and animated characters have earned more than 6,000 ETH in volume (approximately $7.3 million). In December, the project gave away an album of AI music to holders which triggered a fresh wave of trading activity.
WVRPSound also announced a tool for artists to create multitrack NFT albums. Now, an entire album can be minted as an NFT with interactive buttons to skip tracks. It sounds simple, but this hasn’t been done before at scale. Until now the only other example was an early experiment by an indie band called Talk Time. WRVPSound made the technology open source for anyone to use.
View the collection on OpenSea.
10/ Sammy Arriaga – “Pixelated”Monthly trading volume: 17 ETH ($20,672)Primary sales (in Dec): N/ASecondary sales: 17 ETHDrop date: June 2022
Bringing country to crypto, Sammy Arriaga is a singer-songwriter that launched an NFT project called “Pixelated” back in June. Based around 12 different versions of one song, Pixelated is a collection of 4,000 NFTs, each with a unique pixelated profile picture which Arriaga’s fans use across their social media accounts. The Pixelated project has enjoyed steady volume on secondary markets like OpenSea since the launch, but volume picked up in November and December.
View the collection on OpenSea.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between Dec. 1 – Dec. 31, 2022. Conversion rates from crypto to US dollars were calculated on Dec. 31.
Disclosure: The author owns music NFTs from Reo Cragun and Daniel Allan, however, the above list is based purely on sales data.
While the downfall of FTX and the Crypto Winter that saw NFT sales drop 90% dominated Web3 headlines this year, for many creators there was a bigger issue at play. Their royalties have been under attack, undermining a central promise of Web3 as a sustainable model for musicians.
Creator royalties on NFTs ensure that artists get paid a cut of revenue every time their work is sold on a secondary market. As the music NFT market has matured since multi-million dollar sales attracted widespread attention, these royalties have been a central part of the Web3 proposition — presenting musicians with a possible alternative to the major label system and allowing them to generate meaningful revenue over the long term. Only now, that promise is being pulled from under them as several new NFT platforms effectively or explicitly cut out creator royalties — even though it was a core part of the Web3 promise when they originally listed their NFTs for sale — in an aggressive bid for market share.
Even OpenSea, the largest NFT marketplace, briefly considered changing its policy before a deafening backlash from artists forced the company to double down on its commitment to royalties. OpenSea also introduced an “enforcement tool” allowing artists to blacklist rival marketplaces that don’t honor creator royalties. It’s a small win for creators although some have called it a “bandaid” as many growing platforms including Blur, Magic Eden, LooksRare and Sudoswap still do not enforce royalties by default. In some cases it’s a hardline policy, in others the royalty is “optional” allowing traders to opt out of paying the artist when they sell an NFT. Most traders opt out, making the effective royalty rate close to zero.
Creator royalties are the beating heart of Web3 and the primary reason why artists flocked to NFTs in the first place. “Coming from the music world, the promise of being able to earn royalties in perpetuity without the interference of middlemen, was something I could only dream about,” says Illa Da Producer, a 12-time platinum-certified music producer credited on Eminem’s “Killshot” and community lead at Yuga Labs, the company behind Bored Ape Yacht Club. The artist can choose their own royalty rate — typically 2.5% to 10% — and they are lucrative, earning more than $1 billion for creators on OpenSea in 2022 alone.
But there’s a problem. These royalties are not coded directly into the NFTs themselves. They were introduced by marketplaces like OpenSea, originally to attract artists to the space, which means they can be removed just as quickly.
None of this was an issue during the bull-run where cartoon animal JPEGs sold for over a million dollars a piece. Collectors were flush with crypto, happy to pay the artist royalty whenever they made a winning trade. But now the bubble has popped. The price of Ethereum has dropped by 75% and NFT volume is down 90% from the highs in January. NFT platforms are left fighting for market share in a shrinking economy and traders are trying to save as much money as possible.
In a desperate bid to attract users, rival marketplaces like X2Y2 effectively cut out creator royalties by making them “optional” — traders can choose not to pay the artist royalty when they sell their NFTs, therefore pocketing more money from each sale. Other platforms including Blur, LooksRare, Sudoswap and Magic Eden followed a similarly aggressive policy.
Creators were blunt in their criticism. “In many ways, it amounts to theft by the marketplace,” says Jeff Nicholas — founder of WRVPSound, a collection of 9,999 AI music NFTs and the biggest Web3 music project ever by volume at 6,115 ETH (~$7.15 million at current prices) traded, “If a project sets royalties in their terms of service and those royalties are not enforced.”
Nevertheless, it worked. Traders abandoned OpenSea in droves. The platform’s market share dropped from 80% earlier in the year down to 45% in November according to crypto research company Messari. As a result, OpenSea claims that more than $1 million of creator royalties was effectively bypassed in the first week of November alone. At risk of losing even more market share, OpenSea was forced to act quickly, launching a tool that allows artists to blacklist those rival marketplaces.
But there’s a catch. The tool only works for new NFTs. It would not work for the thousands of existing NFTs and projects. The future of royalties on these collections — including the Bored Ape Yacht Club, Doodles and Azuki, was left wide open. In a blog post, OpenSea put all options on the table, including the potential of optional royalties.
The backlash from artists was fierce. “The message to trading platforms like OpenSea is this,” says Gino the Ghost — a Grammy winning producer and founder of Web3 music project Blocktones — “You either stand firm to support the ethos of of Web3 as the creative revolution or you lose the trust and business of the very creatives that make you successful in the first place.”
Many artists spoke out about their fear of losing their livelihood if OpenSea followed through. “I am a transgender teen that escaped an abusive household through the power of NFTs,” wrote Fewocious — a 19 year old digital artist who’s built a massive following in Web3 — in a statement on Twitter. “And there are probably so many more artists, many of whom may not be as fortunate as me, who live off their artist royalties … Please reconsider removing royalties.”
Fewocious’ statement quickly spread across social media, garnering retweets from Snoop Dogg (“Power to tha artists”) and prompting further discussion from industry execs like Lady Gaga’s former manager Troy Carter, “Fucking over creators is very Web2.”
Founders in the space also warned that it would threaten the future of NFT companies, given that many projects rely on royalties to fund their business operations. “None of the top NFT projects you see would be where they are without them,” says Betty — founder of Deadfellaz, an NFT project that partnered with Steve Aoki in October for a Halloween merch drop and has generated more than $37 million in total volume since launching in 2021. “It’s why most of us flocked to this industry and it’s what platforms like Opensea were built on.”
After engaging with the community in several heated public debates, OpenSea clarified its position and promised to enforce creator royalties on all existing collections going forward. Speaking to Billboard, OpenSea admits they could have communicated better during this time. “We own that,” says Shiva Rajaraman, vp of product. However, he affirms that OpenSea has always stood behind artists and, while all options were discussed internally, OpenSea never truly wanted to cut out creators. “Honestly, the idea of just getting rid of creator fees made no sense.” Instead, OpenSea wants to put the power in the hands of creators, he explains. “We should respect, as platforms, that choice that is made [by creators], rather than make that variable.”
Meanwhile, the new on-chain enforcement tool — which Rajaraman describes as a “healthy tension against other marketplaces” — is beginning to work. At least one rival marketplace X2Y2 has backed down and conceded that it will also enforce royalties on all existing collections. OpenSea has since handed over ownership and control of the tool to a collective of several NFT platforms so that the community can be more involved in how it develops.
Artists have mostly responded positively. “This is actually a really good start to enforcing royalties,” says Nicholas. And it’s proof that artists can still make themselves heard, force change and define their terms in the nascent Web3 space. However, he also admits that this solution might just be a “bandaid.” Despite the progress made by artists in the last month, the final decision still appears to be in the hands of the marketplaces.
Some creators are therefore fighting for a complete change to the system. “[We need] a creator focussed and led solution,” says Deadfellaz’s Betty. “We’ve needed to come together for a long time … and work on solutions outside of centralized marketplaces.”
In the meantime, artists and OpenSea do agree that creator royalties should be enshrined as a social and cultural rule, even if they are not always honored by some marketplaces. “If we don’t,” says Nicholas. “Web3 runs the risk of going the same way every other technical innovation has over the last 20-plus years and squeezing the artists and creators yet again.”
Justin Bieber, Snoop Dogg, The Weeknd and dozens of other celebrities are facing a new class action alleging they were secretly paid to “misleadingly” promote NFTs like the Bored Ape Yacht Club, leaving investors with “staggering losses.”
In a complaint filed Thursday in Los Angeles federal court, attorneys for a pair of consumers claimed that Bored Ape parent company Yuga Labs Inc. perpetrated a “vast scheme” in which they “discreetly” paid “highly influential celebrities” to pump up the value of the NFTs (non-fungible tokens).
“Defendants’ promotional campaign was wildly successful, generating billions of dollars in sales and re-sales,” the lawyers for the plaintiffs wrote. “The manufactured celebrity endorsements and misleading promotions … were able to artificially increase the interest in and price of the BAYC NFTs…, causing investors to purchase these losing investments at drastically inflated prices.”
Though this “conspiracy” eventually “raked in millions” for the various defendants, the lawsuit said investors in Bored Ape and other NFTs “were left with staggering losses.”
Yuga Labs and reps for Justin Bieber, Snoop Dogg, The Weeknd also did not return requests for comment.
The case is the latest over celebrity endorsements for cryptocurrencies and NFTs, which soared in value during 2020 and 2021 but have taken a bruising as the economy has slowed in 2022.
In January, investors sued Kim Kardashian, Floyd Mayweather and others earlier this year for promoting the cryptocurrency EthereumMax. And last month, after the spectuacular collapse of crypto company FTX, investors filed a similar suit against Larry David, Tom Brady, Giselle Bündchen, Shaquille O’Neal and Stephen Curry.
But such cases could be facing legal headwinds. The lawsuit against Kardashian and others over EthereumMax was dismissed by a federal judge on Wednesday, who said the conduct raises “legitimate concerns” about online “snake oil,” but that investors must still be expected to “act reasonably before basing their bets on the zeitgeist of the moment.”
Notably, that case was filed by the same lawyer, John T. Jasnoch of Scott + Scott, who filed the new case on Thursday against Yuga Labs. The new case was brought by Adonis Real and Adam Titcher, two consumers who say they bought NFTs, on behalf of potentially thousands of other buyers.
The new lawsuit centers on an alleged partnership between Yuga and music industry bigwig Guy Oseary – longtime manager to Madonna, U2, Red Hot Chili Peppers and others – in which they aimed to “leverage their vast network of A-list musicians, athletes, and celebrity client” to promote Bored Ape and other offerings.
The plaintiffs claim that this was achieved via MoonPay, a crypto platform in which Oseary’s venture capital firm had allegedly invested. Since the celebrity defendants were also allegedly investors in MoonPay, the lawsuit claims Yuga and Oseary used it “as a covert way to compensate the Promoter Defendants for their promotions of the BAYC NFTs without disclosing it to unsuspecting investors.”
Oseary did not immediately return requests for comment on the allegations.
Read the entire complaint here:
November 2022 in the crypto world will forever be marked by the collapse and bankruptcy of FTX — formerly the second-largest crypto exchange. The shockwave rippled through every inch of the Web3 ecosystem, even dragging Coachella into the collateral damage with up to $1.5 million of Coachella NFTs paralyzed on the FTX exchange.
Unsurprisingly, NFT volumes are down across the board. OpenSea’s volume dipped to just $253 million — the lowest in almost 18 months. Across the ten biggest music NFT projects tracked by Billboard in November, sales volume is down 72% in ETH terms (585.2 ETH) and down 78% in dollar terms ($743,181) compared to a strong October.
While November lacked any large Web3 music project launch, the independent scene in Web3 took the spotlight. Sound.xyz — one of the leading platforms for independent music NFTs — saw a record number of drops as well as record new wallets and active collectors (although pure dollar sales are still well off the highs). Meanwhile, several independent artists generated large sales volume through self-released projects. For that reason, seven of the top ten music projects last month came from fully independent Web3 native artists.
Based on analysis of sales data from 19 different NFT platforms, independent releases combined with secondary sales volume on OpenSea, here are the 10 biggest-selling music NFTs and collections in November 2022.
1/ DeafbeefMonthly trading volume: 205 ETH ($260,350 at month-end conversion rate)Primary sales (Nov.): N/ASecondary sales: 205 ETHDrop date: March 2021
Deafbeef is a vintage synth project with a twist. The entire collection is ‘generative’, which means the music was created by an algorithm, and coded into existence on a 10-year old computer by musician Deafbeef.
Released back in March 2021, the collection is considered one of the most important early projects among crypto collectors. Minted straight to the Ethereum blockchain at the moment of creation, it represents an experimental artform only possible through Web3. These rare items are often referred to as “grails” and thought of like art pieces. There were only two sales in November — one at 30 ETH ($38,100) and one at 175 ETH ($222,250) but that was enough to take the top spot.
View the collection on OpenSea.
2/ KINGSHIP – “Key Cards” / “Kurt the Roadie”Monthly trading volume: 127 ETH ($161,290)Primary sales (Nov.): N/ASecondary sales: 127 ETHDrop date: May 2022
The Bored Ape supergroup put together by Universal’s Web3 label 10:22PM stays in the top ten for the sixth month running. The project triggered a wave of new trading activity in November after dropping a free NFT — Kurt the Roadie — to all holders. Kurt is an animated flamingo character, hired by the band to join them on tour, according to the story. The roadie also grants holders access to the “tower” and will fly them to the “floating villa” in the elaborate KINGSHIP map.
The main KINGSHIP collection generated 61 ETH ($77.4k) in volume while the new Kurt the Roadie collection generated 66 ETH ($83.8k) as fans swapped and traded their favorite traits and rare features, some of which were designed by James Fauntleroy — the Grammy-winning producer working on the music for KINGSHIP alongside Hitboy.
View the collection on OpenSea.
3/ Violetta Zironi – “Moonshot” / “Gypsy Heart”Monthly trading volume: 56 ETH ($71,120)Primary sales (Nov.): 30 ETHSecondary sales: 26 ETHDrop date: April 2022
Singer-songwriter Violetta Zironi continues to be one of the most consistent artists in Web3, generating 25 ETH volume in November for her Moonshot project — a collection of 2,500 NFTs which features four songs accompanied by unique artwork by her father, a former Disney animator.
Zironi’s first collection sold out back in April, but she returned in November with a new project called Gypsy Heart and sold 500 early mint passes at 0.06 ETH each. Early holders will lock in a discount before the project goes live to the public in January 2023.
View the collection on OpenSea.
4/ TK – “Eternal Garden”Monthly trading volume: 36.8 ETH ($46,736)Primary sales (Nov.): 36.16 ETHSecondary sales: 0.727 ETHDrop date: November 29
Singer-songwriter TK is among a new wave of independent artists building their early career through Web3. In November, he launched an ambitious collection of 700 audiovisual NFTs called Eternal Garden. It features 7 tracks with an emotional R&B feel, each with a different rarity, revealed only when the sale ends. At the time of writing, TK has almost sold out, with 670 sales.
Like many independent artists, TK laid the groundwork over the past year through several smaller NFT drops, building a strong community of collectors before launching a bigger project. The Eternal Garden drop is the largest collection to use Sound.xyz’s new Sound Protocol which allowed TK to host the drop on his own custom website built with a Web3 tool called Bonfire.
5/ Mija – “Desert Trash” & “Acoustic Album lol”Monthly trading volume: 30.5 ETH ($38,735)Primary sales (Oct.): 12.5 ETHSecondary sales: 18 ETHDrop date: November 2
Independent artist Mija embarked on a Web3 blitz in November, dropping 18 songs as NFTs on Sound.xyz from her 2020 album “Desert Trash” and a new unreleased record “Acoustic Album lol”. Like TK, Mija has fully embraced the Web3 space, often making her music available exclusively on NFT platforms first.
Although Mija’s mints were priced relatively low — at approximately 0.01 ETH ($12) or often free — the sheer volume of music helped her generate 12.5 ETH in primary sales and a further 18 ETH in secondary volume. Mija also used some guerilla marketing tactics to capture attention such as airdropping music NFTs to Ethereum founder Vitalik Buterin’s crypto wallet and minting a song about a pseudonymous music collector known only as Hamburglar.
View collection on OpenSea.
6/ Matt Cooper – Something BeautifulMonthly trading volume: $31,600Primary sales (Oct.): $31,600Secondary sales: N/ADrop date: October 6
Matt Cooper is a rising country star with more than a million TikTok followers and a number one track on the iTunes all-genres songs chart. In November he made his Web3 debut with a drop on Royal. Fresh from launching its new music rights marketplace, Royal allows collectors to earn streaming revenue alongside the artists.
Matt Cooper issued 400 tokens of “Something Beautiful,” each offering a 0.0812% share of future streaming revenue, while 8 ‘diamond’ holders will unlock 2.187% of streaming royalties per token and a virtual meet and greet. The exclusive diamond token is currently changing hands for an average $1,499.
View collection on OpenSea.
7/ Rae Isla – “Rocks”Monthly trading volume: ~27 ETH ETH ($34,290)Primary sales (Oct.): ~27 ETHSecondary sales: N/ADrop date: November 28
Rae Isla spent the last year dedicating herself to Web3, hosting countless Twitter Spaces and building a loyal community. She minted music videos as NFTs on a Web3 video platform called Glass and sold out a music drop on Sound.xyz in 50 seconds.
Rocks, however, is her most ambitious project. It’s a collection of 1,000 NFTs released through Nifty Music — a music NFT accelerator. The collection is made up of four tracks, each with different visual traits and rarities. Holders can unlock rewards depending on how many NFTs they hold, such as free concert access. At the time of writing, Isla has sold 600 from the collection so far.
8/ Probably A Label / Money on the TableMonthly trading volume: 28 ETH ($35,560)Primary sales (Nov.): N/ASecondary sales: 28 ETHDrop date: October 6
Warner Records UK partnered with Web3 brand Probably Nothing to launch a new NFT imprint, Probably a Label. The label’s access passes sold out in 7 minutes in early October and continued to generate secondary sales through November. The label dropped a free music NFT “Money on the Table” featuring Diddy and JasonMartin in November, driving an additional 3 ETH in volume.
View the collection on OpenSea.
9/ Sammy Arriaga – “Pixelated”Monthly trading volume: 25 ETH ($31,750)Primary sales (Nov.): N/ASecondary sales: 25 ETHDrop date: June, 2022
Bringing country to crypto, Sammy Arriaga is a singer-songwriter that launched an NFT project called “Pixelated” back in June. Based around 12 different versions of one song, Pixelated is a collection of 4,000 NFTs, each with a unique pixelated profile picture which Arriaga’s fans use across their social media accounts. The Pixelated project has enjoyed steady volume on secondary markets like OpenSea since the launch, but volume soared in November.
View the collection on OpenSea.
10/ Daniel Allan – VariousMonthly trading volume: 25 ETH ($31,750)Primary sales (Oct.): 1.076 ETHSecondary sales: 24.025 ETHDrop date: Dec, 2021
Most of Daniel Allan’s sales in November can be attributed to one large collector, or “whale.” An unknown crypto address spent approximately 20 ETH “sweeping” up Allan’s earliest drops on Sound.xyz on the secondary market. Allan also had a small primary sale in November via a collaboration with Reo Cragun released through Cragun’s “LNRZ” collective.
Methodology: The chart was compiled using data from primary music NFT sales across 19 different NFT platforms, independent releases and combined with secondary volume data from OpenSea. Data was captured between November 1 – November 30, 2022. Conversion rates from crypto to US dollars were calculated on November 30.
Disclosure: The author owns music NFTs from TK, Mija and Daniel Allan, however, the above list is based purely on sales data.