NFT Platform Sound.xyz Raises $20 Million in Latest Round

Innovative ideas in the music industry continue to attract investment, as NFT platform Sound.xyz gets a $20 million infusion.

Big name believers: The $20 million came from a mix of investors and established artists, who apparently see potential and could provide a credibility boost. Those early-adopting stars are Snoop Dogg, OneRepublic frontman Ryan Tedder and hip-hop producer Tay Keith. Sound.xyz says it will use the money to hire staff and begin marketing.

Why it’s important: With a unique business model, Sound.xyz aims to create another potential revenue stream for music creators – especially independents without traditional support networks. A hybrid of streaming-age tech and old-school, sell-it-from-the-truck-of-your-car energy, the platform allows artists to release music as a set of NFTs. They can be streamed for free or purchased outright (which has otherwise disappeared from the industry, the company notes) and artists themselves set the price.

According to Sound.xyz, the artist then keeps 95% of the proceeds and 10% of every resale "without giving up any ownership of their master or publishing rights." Best of all, there’s no coding required, so creators can do everything themselves. The company claims creators have already earned over $5.5 million in the last year, including one who raked in $300,000 on 500 NFTs. 

What they're saying: "Our mission is to create a world where artists can make a living off their music alone, regardless of who they know in the music industry," the company said. "We embarked on this journey 18 months ago to liberate music from the one-size-fits-all business model and make Sound the ultimate hub for music discovery on the internet. So far, we have seen tremendous success."