LimeWire Is Making a Comeback to Sell Music NFTs – What You Should Know Before You Buy
LimeWire is coming back to life as a digital collectibles marketplace, and it’s starting with a partnership with Universal Music Group, according to a press release issued by UMG.
You may remember LimeWire as a free software peer-to-peer file-sharing network. The service closed in 2010 after a legal battle with the Recording Industry Association of America over copyright infringement. Now, the service has returned, boasting on its website that it is a “one-stop marketplace for artists and fans alike to create, buy and trade digital collectible without the technical crypto requirements of the NFT landscape,” NME.com reported.
Currently, LimeWire accepts more than 20 cryptocurrencies for purchases or users can make purchases in U.S. dollars using a credit card, bank transfer, PayPal or other payment services. LimeWire defines “digital collectibles” as any exclusive or limited item not publicly available, which can include real assets such as musical instruments, as well as song demos, artwork, interviews, bonus tracks, animation, or videos.
The partnership with UMG gives users access to exclusive offerings from UMG artists, including recordings, videos, backstage footage, artwork and images.
On its website, LimeWire addresses copyright infringement concerns by noting that it is on-boarding artists directly or asking for verification that the musicians are the copyright owners. The partnership with UMG streamlines the process, ensuring that UMG artists or UMG holds the copyright to the material and LimeWire is using it with permission.
“Universal Music Group has always prioritised [sic] its artists’ creativity and valued fans’ desire to engage in innovative new ways. Now, NFTs are providing an exciting vehicle to enhance this connection between artists and audiences,” Jonathan Dworkin, EVP, Digital Business Development & Strategy at UMG, said in a press release. “This is why we are delighted to have partnered with LimeWire, who is focused on guiding everyday users into this expansive arena, in this new era of Web3 engagement and music appreciation.”
Should You Invest?
NFTs as an asset have been growing in popularity over the past few years, with sports teams, movie production companies, and musicians offering exclusive creative content that resides in the digital realm.
For some, the benefit is access to exclusive content and collectibles. Some fans invest in the experience for enjoyment, without a thought about whether the digital assets will appreciate over time.
But if you plan to begin investing in NFTs for possible future profit, it’s important to know the potential is there. For instance, musician and artist Grimes released an NFT that combined music, art and video that garnered $7 million. One piece in the collection sold at auction for roughly $389,000, MotleyFool.com reported.
How to Choose NFTs for Investment
While you may be tempted to start your collection just by buying from artists you enjoy and want to support, you’ll also want to look at how many of each non-fungible token is being produced.
It’s not just the quality of the art that matters in the case of investments, but how rare the art is. What will be the demand in the future? Does the artist’s name have staying power, where people will likely covet their NFTs in the future? Or do they have a cult following where their art and music are likely to command a high sales price even though they have a small audience?
Of course, if you’re looking to enjoy NFTs for the sake of the art without an intent to re-sell the assets, you can be more flexible with your choices.
If you’re looking to invest, as with anything, understand that NFTs could drop in value. Never pay more than you can afford to lose or more than you can afford to spend.
More From GOBankingRates