Armando Pérez, better known as the rapper Pitbull, sat down with CNBC at a conference in Miami to talk about cryptocurrency and non-replaceable tokens. Of the many sound bites Pitbull gave, one stood out about NFTs: They hold promise for musicians.
The statement came when Pitbull said that when most musicians reach a certain peak in their careers, they can feel stymied by the business aspects of the profession. Non-exchangeable tokens allow musicians to get creative again, a bullish signal for NFTs disrupting the music industry.
Part of the appeal of NFTs to Pitbull is that they have many different usage scenarios, allowing fans to interact with artists in new ways. One of the examples he gave was an NFT that allows the fan to have a unique experience at a concert. He said that in NFT space, “we build the plane as we fly it.”
Still, the rapper is hesitant with investments he makes in space. NFTs (and cryptocurrency) are a bit “like the Wild West” right now. While NFTs may have started as a technological innovation, when people “discovered they could make money” with NFTs, it became like “swimming in bloody water” with sharks.
Musicians and recording labels jump into Web3
Pitbull is not new to the Web3 scene. Years ago, he invested in a blockchain company, which led to his deep dive into crypto and non-replaceable tokens. Today, he signed a contract with music NFT platform OneOf, which also has a deal with the Grammys to produce music-related NFTs.
And as Pitbull has suggested, the music industry has moved on to NFTs like few other industries have. Some developments in the past year are:
As the CNBC interviewer hinted in the Pitbull interview, music NFTs can also cut out music industry middlemen. And because royalty arrangements are baked into smart contracts, musicians can regain some of the power that record labels and streaming companies stole.
Time will tell if Pitbull’s venture with OneOf and his other investments in Web3 pay off, but there’s little doubt that NFTs can continue to disrupt the music industry and lead to new ways for fans to connect with artists.