American rock band Kings of Leon have announced their next album will be released as a non-fungible token (NFT) this Friday, just the latest high-profile digital collectible coming to market at a time of skyrocketing interest in cryptoassets.
Here’s what investors should know about the new album, “NFT Yourself,” coming out Friday, March 5:
The Kings of Leon NFT album will be sold via three types of tokens; a digital and vinyl album bundle, tokens with exclusive audiovisual art attached, and a very limited “Golden Ticket” package.
That “Golden Ticket” package includes two front row seats for any headlining Kings of Leon show anywhere in the world, in perpetuity.
Those limited tokens also come with a private meet and greet as well as chauffeur and concierge service at the concert, plus all the merch associated with that tour.
The “Golden Ticket” will renew every time the band announces a tour, and also comes with copies of the aforementioned exclusive audiovisual art included with lower-price tokens.
The tokens were minted by blockchain ticketing platform YellowHeart.
Yellowheart Founder and CEO Josh Katz told Rolling Stone the “Golden Ticket” package is an “extreme example to prove a point” about potential applications for blockchain technology regarding concert tickets.
Katz previously told Rolling Stone he could see blockchain dramatically changing the way musicians and other artists conduct business, and NFTs as just beginning to scratch the surface of that transformation.
Yellowheart was founded in 2019 to address “scalping,” the practice of reselling event tickets for much more than face value.
Kings of Leon is the first band to release an NFT album, although other musicians, such as Linkin Park’s Mike Shinoda, have also sold music via non-fungible tokens.
While it is difficult to predict the price of an NFT, recent sales by less-widely known artists such as electronic musician Yaeji have netted huge profits.
Yaeji’s NFT was a “digital pet,” essentially a short video of a doodled fish. That token initially sold for 18.88 Ethereum (CCC:ETH-USD), worth a little less than $29,000 at time of writing.
Comparing that token to the “NFT Yourself” project would be unfair; the Yaeji sale was a one-off, compared with “open releases” that will mint as many tokens as people buy from Kings of Leon and YellowHeart within the sale period.
Additionally, the Yaeji token benefits much more from scarcity (there is only one), while even the “limited releases” by Kings of Leon will have at least 500 editions of each token.
That being said, even the open release Kings of Leon NFT album tokens will benefit from scarcity after direct sales end, but its impossible to predict how their value will hold or move.
However, we can use the artists’ relative popularity to gauge the potential “hype” around the “NFT Yourself” token compared to the Yaeji token.
Yaeji averages 1.1 million monthly listeners on Spotify (NYSE:SPOT); Kings of Leon average 12.3 million.
The Kings of Leon NFT album will also be simultaneously released to standard streaming platforms.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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