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The 'initial coin offering' of 200m Vibes is the latest chapter in Slovenia-based Viberate's mission to create a 'live music Airbnb' for unsigned musicians
By Jon Chapple on 07 Aug 2017
Viberate – a blockchain-based ‘live music marketplace’ that aims to “do for music what Airbnb did for tourism” – is gearing up for an initial coin offering (ICO) of US$12 million worth of Vibes, the first cryptocurrency aimed specifically at the live music industry.
The ‘crowdsale’ of 200m Vibe tokens, which have a base price of $0.10, runs from from 5 September to 4 October, and follows more than $1m worth of investment in the Ljubljana-based start-up since April 2016.
“The main difference” between Viberate and other music-focused cryptocurrencies, says co-founder and COO Vasja Veber, “is that those services operate in the recorded music segment, whereas Viberate focuses on the live segment.
“We are not interested in the world of recorded music, royalties and copyright. It’s an interesting field and in definite need for help, and we hope that our fellow founders in Musiconomi, Voise, Opus and others will give the massive recorded music market a much needed kick in the butt and let musicians make money again by producing good music.
“[But w]hat we are interested at is giving musicians an opportunity to charge for their gigs in cryptocurrencies. We want to do for music what Airbnb did for tourism.”
“There is a clear need for an entity that would effectively and safely represent all those who don’t have a privilege of an agent”
In addition to allowing touring musicians to be paid in Vibes, Viberate – as detailed in its white paper – aims to offer artists, promoters and agents a blockchain-based alternative to what it calls a “heavily centralised” industry dominated by “a few major talent agencies”.
“Musicians need agents in order to land enough gigs to make a living, and most of the musicians don’t stand a chance of getting spotted,” it reads. “Only a fraction of a percent of all the world’s musicians have proper representation and are lucky enough to have music as their primary source of income. The rest are left on their own, struggling with exposure in a heavily saturated market, dealing with marketing, sales, networking, legal, taxation and debt collection issues instead of focusing on the creative part of the music business. […]
“There is a clear need for an entity that would effectively and safely represent all those who don’t have a privilege of an agent. Blockchain technology offers the best tools for this task.”
For event organisers, the platform gives promoters a helping hand in staying “on top of trends in live music” and provides them with a constantly evolving roster – which may also be supplied by booking agencies – of “interesting musicians”.
“A good event organiser in a busy city can organise up to three or four events weekly with several musicians on the line-up. Such frequency soon leads to the organiser not knowing who to book next. An event organiser’s product is a ticket, and their primary goal is to sell as many tickets as possible. To do this they need a good programme and a good ticket sales channel.”
“80% of all musicians in the world are unsigned … We want to be their agent, and we’ll offer them the tools they need to become successful performers”
In both scenarios, says Viberate, the solution is a decentralised, blockchain-based database of artists, promoters, agencies and venues that allows each party to communicate with, and book, the others at will, “regardless of genre, country, fame level or gig history”.
Commenting on the upcoming ICO, Veber tells Cointelegraph: “We don’t expect the big guys to jump on the bandwagon right away. But they were never our target group anyway, and we don’t expect Justin Bieber or Coldplay to be ready to accept Bitcoins or Vibes in exchange for their services.
“Our main target group has always been the underdogs: Local musicians, low-profile garage bands, who need a place to offer their performances to promoters and clubs. And those are usually younger people, millennials, who are quite fond of cryptocurrencies. They are our true ambassadors and there’s a lot of them. We estimate that around 80% of all musicians in the world are unsigned, meaning they don’t have an agent to represent them.
“Now we want to be their agent, and we’ll offer them all the tools they need to become successful performers and make a living by doing what they love.”
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