The Tokenization Trap

I’m all for Tokenization of future cash flows, but packaging to “sell to fans” will unavoidably run into big issues.

Fans believe that musicians make a lot more money per stream than they actually do. In fact, if they realized how little they get paid per stream they’d be shocked. $3.00 per 1K streams = $3,000 per 1MM streams. Your “1% ownership” in a song that hits mega-fame status is still only a few thousand dollars.

Some will say that they’re investing in the “experience” of being an owner and being supportive of the favorite musicians and having bragging rights with their friends and family, etc. They might be right.

But if it’s sold as a financial instrument then disclosures are essential and individuals can’t market and re-sell their positions without running afoul of important protective regulations.

We don’t want to go back to the days of anyone being able to sell anything to anyone with a buyer beware hands-off attitude. The crooks will capitalize on this all day……