Live Music Industry To Get Its Own Cryptocurrency
Shakespeare said, “If music be the food of love, play on” but can musicians survive on food of love alone?
Viberate, an online database of musicians, is trying to pair musicians with event organizers as well as create a payment platform. The focus is on the live music industry. It is an existing service which rewards users with Vibe points. They are planning to transform these points into a digital currency – Vibe tokens that can be used on the Viberate platform but also be associated with smart contracts for music related activities.
Viberate plan to launch their crowdsale on Sept. 5, 2017, the sale will end on Oct. 4, 2017 and the supply is pegged at 200 mln tokens.
Viberate has already received $580,000 in the first round of funding in April 2016. They were able to raise $440,000 in February 2017 from an angel investor.
We asked Vasja Veber, COO and Co-founder of Viberate about why they chose the ICO route even after they had successfully raised funding.
“Angel investors backed the development of the initial service at Viberate.com, which currently acts as some kind of IMDb for live music. Upgrading this into a full-scale marketplace, featuring profiles of all stakeholders in the music industry, requires much more cash.”
He adds, “Besides musicians, we will soon add profiles for music venues, event organizers, booking agencies and even millions of events. We first need to implement all the planned features and then advertise it globally to kickstart the marketplace, and such marketing campaigns are extremely expensive, but in the end, this is the only way to ensure substantial marketplace liquidity.”
Can Blockchain and cryptocurrencies add value to music?
The Viberate ICO is interesting in the sense that while many have attempted to build services around recorded music and are doing a good job, the live music segment has been ignored till now. Viberate aims to change that.
In a recent blog Vasja Veber writes:
“What we are interested in is giving musicians an opportunity to charge for their gigs in cryptocurrencies. We want to do for music what Airbnb did for tourism.”
We asked Veber how Blockchain and crypto add value to his existing product and how is the Viberate ICO different from others.
He tells Cointelegraph:
“Lately we have been receiving a lot of questions regarding our cap, which is set at $12 mln. People think it’s too low, but we disagree. With all due respect to other ICOs, we think that valuations and caps should be set realistically. There are too many ideas raising crazy sums of money that can be compared to C rounds in venture investments, and we believe this isn’t good for the industry. That’s why we started preparing for our ICO after the launch of our current service because we want people to contribute towards the development of something that already exists and has users.”
He goes on to explain that using a cryptocurrency kills multiple birds with a single arrow. They can offer escrow services to musicians, create a universal payment system for the music world that can be used across jurisdictions in diverse geographies and even make bookings for gigs. The Ethereum based smart contracts were described as “an ideal way” by Vasja.