Universal Music Group will release NFT on LimeWire
Universal Music Group (UMG), the giant of the recording industry behind Taylor Swift, Maroon5, BTS, and many famous artists has officially joined LimeWire to permit artists to publish NFTs. In a post, Universal Music Group also announced the event.
Web3-based digital music sharing services are making a comeback. LimeWire stated these days that it had reached a contract with the music company Universal Music Group, just a few days after Algorand’s acquisition of Napster.
According to UMG Executive Vice President of Strategy, NFT is an amazing approach for music artists to communicate with fans. NFT acts as proof of a digital item’s title, representing assets such as works of art, music files, collectibles, and so on.
This deal will allow international artists under contract with Universal Music Group to release encrypted digital collections via LimeWire in the near future.
UMG was created in 1934 and is well-known for managing numerous A-list artists such as Taylor Swift, Shaw Mendes, The Rolling Stones, Drake, BTS, Maroon 5, The Weeknd, Abba, Justin Bieber, and many others. In 2020, UMG earned $8.82 billion in 60 countries around the world. MUG’s publishing branch has successfully launched around three million songs.
LimeWire, which began in the early 2000s as a peer-to-peer (P2P) music sharing platform, will be resurrected as an NFT exchange, first focusing primarily on publishing material related to music, artwork, and musician collections.
The platform will go into operation this May under the leadership of two entrepreneurs, CEOs Paul and Julian Zehetmayr. The brothers acquired the LimeWire brand last year because they appreciate the power, energy, and meaning of the platform to an entire generation of listeners. Instead of allowing users to freely share songs like the original, LimeWire will bring a whole new playing field for artists and fans through the release of NFT.
LimeWire has chosen to use the Algorand blockchain platform. This is a blockchain network that uses the Proof-of-Stake consensus mechanism. It seeks to compete with Ethereum and become the major platform for NFT and decentralized applications.
The company successfully raised $10.4 million in a token sale organized by Kraken Ventures, Arrington Capital, and GSR in April. There is also participation from Crypto.com Capital and the Deadmau5 720Mau5 fund. The venture also intends to issue tokens by the end of the year.
Universal Music Group’s entry into the Web3 space is not its first. Last November, UMG’s 22:22 label unveiled Kingship, a Gorillaz-inspired virtual actuality band based on a Bored Ape Yacht Club NFT series. The band will compete and promote its NFT in the metaverse.
Meanwhile, rival Warner Music Group announced in January a collaboration agreement with the metaverse game The Sandbox (SAND). This is the team in charge of artists such as Lizzo and Ed Sheeran, who will collaborate to create the landscape in The Sandbox and hold exhilarating concerts in the space.
Music NFTs are seen as one of the following significant trends, with some supporters believing that musical properties will make a significant difference to the mainstream music sector, thanks to the blockchain’s ability.
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