The popular music app is the latest to explore NFTs. However, it might not be the best time to make the leap, as cryptocurrencies – including NFTs – face downward pressure.
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The multimedia services platform Spotify has started testing a function of tokens Non-fungible (NFT); although some reports suggest that this may not be the best time for the burgeoning digital digital technologies are these electronic tools that have the ability to generate, store or even process data. collectibles sector.
As reported by TechCrunch , Spotify is testing a new feature that allows artists on the platform a place to buy, sell and store cryptocurrency to promote NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). on their profiles. . The new option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. is initially available to a select group of musicians, apparently including big-name artists like Steve Aoki and The Wombats.
“ Spotify is running a trial in which it will help a small group of artists promote their existing third-party NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. offerings through their artist profiles. “said a spokesman for Spotify in a statement quoted by the media.
We routinely conduct a series of tests in an effort to improve the artist and fan experiences. Some of these tests end up paving the way for a broader experience and others serve only as an important learning experience.
Spotify test new NFT function
The news was initially reported by the portal Music Ally which collected the statements of some of the users of Twitter who reported on a survey of Spotify in which the company sought to measure its users’ interest in NFTs.
While there are still few details about the feature, that report said the platform will not charge a commission for NFT sales made through the app and is only testing the integration. Meanwhile, Steve Aoki’s and The Wombats’ pages at Spotify also provide some insight into how the option might work.
According toThe Vergewho shared screenshots of those pages, la NFT gallery is below the header and track listing the addition of an asset or an asset pair to an exchange. for each artist . Clicking on this section reveals a collection of NFTs that you can scroll through. If an NFT is selected, an enlarged version of the NFT will be displayed, as well as a brief description.
Spotify also includes a “See more” option, which directs you to the NFT page at OpenSea where you can buy the collectible, add The Verge . However, he points out that, curiously, the platform does not seem to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. NFT of videos, GIFs or with sound included, only static images, which is strange considering that it is a multimedia platform (primarily music).
A inicios de año, una job vacancy had already revealed that the famous music and podcast player app was possibly exploring the Web3. Spotify is not the only one, as other similar platforms, such as YouTube have begun to dabble in NFTs and the latest technology trends as a way to provide their users with more monetization alternatives.
Falling markets
The movement of Spotify comes at a time of decline for the NFT sector, which has fallen particularly hard this week amid a broader collapse in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market.
Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. has lost its crucial level of USD $30,000 and the major digital currencies have posted massive losses after the controversial collapse of the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. UST, from Earth will negatively impact the market. Daily sales of NFT have dropped amid these events, falling from 225,000 in September 2021 to just 19,000 on May 3, a 92% decline, according toThe Wall Street Journal.
The trend has also seen the prices of some of the top NFTs, including the popular collection B ored Ape Yacht Club (BAYC), fall to lows. The price reduction ofEther the form of payment used in the operation of the distribution application platform, Ethereum.the platform’s native cryptocurrency Ethereum, which harbors a greater volume how much cryptocurrency has been traded over a set period, such as the past 24 hours. of NFT, could be contributing to this phenomenon.
NFT at risk of collapse as UST?
The bank’s analysts Morgan Stanley have warned that NFTs could face further downward pressure due to their speculative dynamics. A recent bank report, cited by CoinDesk points out that,si bien los criptomercados han estado operando mal desde noviembre, se han visto conmocionados por el colapso de la tercera stablecoin más grande , UST, in the last few days.
Promoted and leveraged cryptocurrency areas, such as decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance ( DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. ) and stable currencies backed by cryptocurrency are experiencing massive liquidations, as it is becoming increasingly clear that all the high prices were negotiated on speculation, with limited real demand from users.
The bank’s report highlights that NFTs and tokenized metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. land are two areas that have been subject to much speculation and capital capital is most commonly defined as the large sum of money you would use to invest. inflows. In this regard, he argues that the reason most people bought these assets was based on the expectation that another buyer would want to buy them for a higher dollar price.
These more speculative and leveraged areas of the cryptomarkets are now under pressure due to several factors, including rising interest rates by the U.S. Federal Reserve (Fed), the report says, which has led to a “ broader reassessment of where they should be trading”. many of the digital assets, including NFTs.
- Is the NFT market an area or arena, online or offline, in which commercial dealings are conducted. deflating? Reports say so
- Luna Foundation Breaks Silence: Says How Much It Spent to Defend UST (but Failed)
- UST Effect: Other stablecoins also struggle to maintain parity with the dollar
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
