Sound, a blockchain-based music platform, successfully closed a $20 million fundraising round. The platform aims to revolutionize the music industry by allowing artists to sell their productions in the form of non-fungible tokens (NFT). The project caught the attention of figures such as musicians Snoop Dogg and 21 Savage, who both helped with the funding.
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Sound raises $20 million
Web3 as a solution for artists? That’s the bet of David Greenstein, CEO and co-founder of Sound.xyza music platform that aims to remunerate musical artists by allowing them to sell their productions in the form of non-fungible tokens (NFT).
The on-chain music platform, which hopes to unearth “ the next Drake or the next Billie Eilish », attracted the interest of rapper 21 Savage and cryptocurrency fund a16z in 2021, who had both participated in a first fundraising that had exceeded 5 million dollars.
Today, Sound closed a $20 million Series A seed round featuring rapper Snoop Dogg (who has already published a few tracks on the platform), Ryan Tedder (from the OneRepublic group) and a16z, who therefore wished to participate for a second time.
According to his press release, Sound helped generate $5.5 million for a select group of artists last year, i.e. for its first year of launch. From now on, the platform is open to all artists who wish to open up to Web3 in an original and innovative way.
“The funds will allow us to grow our team and continue our mission: to make Sound the home of music discovery on the web and mobile phones. »
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Paradigm shift for the music industry?
At the crossroads of Spotify and iTunes, Sound offers artists who wish to pay a small fee to add their music to the platform. Once the tracks are online, they become available for streaming and a portion of them, determined by the artist, is also made available for purchase as NFT. This innovative model allows Sound listeners to remunerate artists in a more balanced and fairer way.
Indeed, as David Greenstein points out, artists are only meagerly rewarded by streaming platforms, even the best known. According to him, the pricing model currently applied to this industry allows only 0.1% of artists to make a full living from their creations.
“Sound reverses this pattern. We encourage artists, not platforms or labels, to price their music and sell it directly to their fans. They get paid instantly and can see their biggest supporters on every track. It’s the biggest music breakthrough since streaming. »
Sound cites the indie rapper as an example Reo Cragun, who has generated over $120,000 from his shared productions on Soundwhich also allowed him to build a small community of 500 collectors.
Since last June, Sound has offered its services through Optimism, a second layer solution for the Ethereum (ETH) blockchain, also available to the Web3 streaming platform community.
👉 To deepen – Music and Web3: How do NFTs bring artists closer to their fans?
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Source: Press Release
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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