CRYPTO – AUDIO – AUDIUS HYPED TO COMPETE WITH SPOTIFY?BEATEN DOWN WITH MOST OF CRYPTO. ANY THOUGHTS OF THE FUTURE? AND ARTISTS MOVING INTO IT?
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Trying to apply some “Web3” technology to use crypto as a way to disrupt the music industry is going to be insanely difficult — the global music business, when it comes to controlling artists’ royalties and turning artists into stars, is essentially a three-way oligopoly.
I haven’t looked at this one in any detail, but I’d be extremely skeptical going in –I’m probably biased against almost every crypto project, to be fair. In my opinion, most of the cryptos that aim to disrupt an existing business are doomed and will never become commercially meaningful, they just don’t solve a problem in a meaningful enough way to replace an incumbent system… and a lot of the rest may end up having important technology that can reshape the way a business works, but lack anything like a business plan that logically drives any of the profit of the enterprise to their token owners… but this one in particular stands out as facing a real challenge in creating an actual business.
That doesn’t mean the crypto can’t go up — most cryptocurrencies are extremely reactive to sentiment and attention, just like penny stocks, so if there’s a bit of good news about the project the price could certainly rise. And, of course, maybe I’m wrong about the potential. In a lot of ways, cryptocurrency projects are a lot like venture capital 20 years ago, the businesses are unproven but in some ways exciting, and there may be some big winners… it’s just that the venture investors knew the business plan and knew the risk and sat on the board, and the funders of crypto projects these days are often individual speculators who like the story but have no influence over the people behind it and aren’t even told anything about the financials of the business. That’s a recipe for ripping off a lot of investors, or at least wasting a lot of money on projects that never go anywhere, but the hope of a future breakthrough is always there to continue to entice us.