Sound, a blockchain-based platform that connects music artists directly to fans, has raised $20 million in a Series A round led by rapper Snoop Dogg and venture capital firm Andreessen Horowitz.
Sound’s Vision for Web3 Music
Soundwe is a Web3 music platform that aims to help artists by removing intermediaries and connecting them directly to fans through blockchain.
The platform allows music creators to mint their songs on-chain as a non-fungible token (NFT) and sell them directly to their fans.
Sound claims to have generated $5.5 million for creators through direct music sales as NFTs since its beta launch in 2022.
The latest funding round of Sound comes after its $5 million seed round in 2021. Snoop Dogg had previously shared his concerns about the current music streaming platforms like Spotify and Apple Music.
The musician complained that the artists don’t get enough money compared to the numbers their tracks achieve on these streaming platforms.
Now the famous rapper himself has invested in a blockchain-based platform that aims to eliminate intermediaries like streaming platforms from the artists’ way.
Atlanta-based rapper 21 Savage is also among the investors in the Web3 music platform.
As per the announcement, the music company will spend the new funds on artist relations, marketing, and engineering teams, as it gears up to open to the public.
David Greenstein, co-founder of Sound, said that as music subscription services have emerged in the recent past, they have expanded access to songs while diminishing artists’ earnings at the same time,
He further explained how Web3 helps facilitate direct payments for the songs by allowing music creators to eliminate the middleman and keep
Artists can utilize Ethereum and layer two scaling solution Optimism to upload their songs, mint them on-chain and sell them for ETH. He added that this process can be done without requiring fans to create a wallet by supporting fiat payments.
Web3 Music Platforms on the Rise
Sound is not the only Web3 music platform trying to disrupt the traditional music industry and empower artists and fans.
Several other platforms are leveraging blockchain technology and NFTs to create new models and opportunities for music creation, distribution, and consumption. Some of these platforms include:
- Audius:Â A decentralized music streaming protocol that allows artists to upload, share, and monetize their music without intermediaries. Audius has over 6 million monthly active users and over 150,000 artists on its platform, including Skrillex, deadmau5, Diplo, and Weezer.
- Emanate:Â A blockchain-based platform enabling real-time music streaming and collaboration payments. Emanate allows artists to set their own terms and conditions for their music and get paid instantly whenever someone streams their songs.
- Tamago:Â A social media platform that combines music streaming with NFTs and gamification. Tamago allows artists to create NFTs of their songs and albums and sell them directly to fans or auction them off on its marketplace. Fans can also earn rewards by listening to music, engaging with artists, and participating in games.
- OPUS:Â A decentralized music platform that uses IPFS (InterPlanetary File System) to store and stream music files without any central server or intermediary. OPUS allows artists to upload their music and set their own prices for streaming or downloading. It also integrates with Ethereum smart contracts to enable transparent royalty distribution.
- BitSong:Â A blockchain-based platform that aims to create a new music ecosystem where artists, listeners, producers, and advertisers can interact and benefit from each other. It allows artists to create NFTs of their songs and albums and sell them on its marketplace or stream them on its radio station. BitSong also enables listeners to earn tokens by listening to music or watching ads.
These platforms show how Web3 is reshaping the music industry and creating new possibilities for artists and fans alike.Â
