Rap star Nas believes NFTs are the future of the music business, so he is backing a new platform attempting to revolutionize the industry.
The rap star was among the celebrities who helped raise $55 million for a new company called Royal.
Other investors include Logic, The Chainsmokers, Stefflon Don, Joyner Lucas, heavyweight investment firms a16Z, CAA, Coinbase Ventures, and others.
The $55 million raise follows the initial seed round of $16 million Royal raised in August.
The Royal platform allows anyone to purchase the right to earn royalties from their favorite songs, while artists raise money from their fans through sales of NFTs.
CEO Justin “3LAU” Blau co-founded the company.
3LAU, who has produced for artists like Rihanna, Ariana Grande, and others, said he proved the concept of the platform last month when he gave away 333 limited NFTs representing 50% of streaming ownership in his new song “Worst Case.”
Over two weeks later, the song is valued at $6 million, and fans own half of that value. According to the company, the tokens also traded at over $650,000 on the secondary markets.
“When Justin told us about Royal and how artists can share rights to their music directly with their community, it just clicked,” Logic said. “To us, that’s a game-changer.”
Royal believes connecting fans directly with their artists will create a deeper connection – and a financial incentive to stream music.
The company is planning to roll out the entire platform in early 2022.
Last month, it was revealed that Nas was among the celebrity investors backing blockchain streaming service, Audius.