Former Gaana’s CEO’s NFT startup FanTiger lets you invest in music, and get royalties

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Prashan Agarwal, former CEO Gaana, and co-founder PropTiger, is a co-founder of PropTiger Prashan Agarwal, who was Gaana’s CEO and Co-founder the NFTs (Non-Fungible Tokens) will achieve mainstream acceptance if they possess strong use and have incentives for the users to buy the tokens.

An industry veteran in the music industry, Prashan identified potential in developing an NFT platform that allows buyers to have a share of music and earn a royalty according to its performance.

Buyers may also utilize the NFT to gain access to exclusive benefits (such as meetings with their preferred artists and even selling the NFT in a secondary market to make a greater profit from their investments).

In this regard Prashan is currently building FanTiger as an online platform that connects independent creators, artists, and musicians to fans through NFTs.

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In order to build this platform FanTiger has was able to raise $5.5 millions in a seed round , led by Multicoin Capital. Other investors who participated in the round were Krafton, Pravega Ventures, GAMA, Woodstock Fund, IOSG Ventures, Polygon Studios, along with Sandeep Nailwal (Co-founder of Polygon), Gokul Rajaram, Prashant Malik, and Miten Sampat.

The platform has been signed by artists like Sunanda Sharma and Naalayakfor their music albums. It says it has other partnerships planned and focuses on music that is in languages like Punjabi, Tamil, Marathi, Bhojpuri, and more.

What is the function of the platform?

For the artist’s side, FanTiger is a way to raise money for and earn revenue for upcoming songs launch.

For example, the platform will endeavor to raise between three lakhs to 35 lakh for each track dependent on the scale that the performer.

The money is raised through splitting the ownership of the song into hundreds or even thousands of NFTs and then selling them to the fans and fans.

“We begin with the range of Rs 499-799as an ideal range of entry for fans to purchase an NFT of a forthcoming track. Let’s suppose we’re able to sell 2,500 NFTs, and then raise around Rs 25 lakh for an artist. The artist has the chance to make money directly from fans, rather than the usual model where record labels and streaming platforms make up the majority of earnings,” Prashan says.

FanTiger receives a two percent cut of the money collected.

The platform also supports and assists artists to host meet and greets, video conferences, as well as other content that can be unlocked to owners of NFTs which allows creators to create their own fan-bases.

If the song is played on YouTube, Spotify, Gaana, Apple Music along with other online streaming services, it is paid royalty based on the performance. The royalties are paid back to the artist and supporters.

“45 percent” of the royalty earnings go directly to artists. 45 percent goes into our royalty vault to benefit our customers. The remaining (10 percent) is ours,” Prashan says.

Secondary market for NFTs

FanTiger is also developing an online marketplace where owners are able to sell NFTs.

The prices here are by supply and demand. However, Prashan believes that NFT prices will not become as volatile, as expensive, rare NFTs which are offered for hundreds of thousands of dollars, on sites like OpenSea.

“The NFTs earn cash through royalty revenue and offer exclusive access to artists. Furthermore it is possible to get several hundred or a thousand NFTs per song. If all these components come together, a person from the previous scenario could possibly trade their NFT (which cost them around Rs 799) for between Rs 8,000 and the amount of Rs 10,000. They’re not NFTs that are worth $1,000 to $1 lakh with no cause,” Prashan explains.

The secondary marketplace is being developed and when it is launched later this year, will include an annual fee of 5 percent for platform use as well as a 5 percent commission that is paid to the artist who created it. The seller gets 90% of the final cost of the sale.

As an example, Amitabh Bachchan’ss entire collection of NFTs auctioned off for less than $1 million. Meanwhile, global projects like CryptoPunks as well as Bored Ape Yacht Club (BAYC) have sold NFTs for millions of dollars per year.

A number of homegrown initiatives like WazirX NFT Marketplace, Diginoor, Rario, Vibranium, Swaraj Projekt, and more have been innovating within the NFT market, seeking innovative ways to break into market share in the Indian NFT marketplace.

A new type of NFTs

To Prashan, a new category of cash-flow-generating NFTs may alter the trend and change the buyers in the Indian market to NFT investors.

“There are a lot of NFT projects that concentrate solely on demand-side. There’s no fundamental asset behind the NFT. But the market is huge and numerous startups have the opportunity to test new concepts. Because we know the market well, we believe that we have the right tools to be the leader in this disruption,” he states, adding:

“With FanTiger, holders can not only earn a royalty and also maximize the value of supporting upcoming or less well-known musicians early on. This is how we can create an entirely new asset class for music lovers.”

FanTiger is also exploring the concept of NFT baskets where customers are able to invest in a variety of NFTs with a common concept.

The ultimate goal is to create an Do-it-yourself (DIY) service for creators to communicate directly with their followers, in which both parties stand to benefit financially. The vision isn’t only limited to music. In the actual sense, Prashan thinks that the same formula could be extended to movies, TV series or other media content formats that are available on the FanTiger platform.

“We strive to bring one lakh artists and one crore users to the platform in three to five years,” the CEO says.

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