Last Updated on March 21, 2024
Quick take:
- The payments are made using Tune.FM’s native JAM token $JAM.
- They are also paid for minting their digital music assets as NFTs.
- Tune plans to use the capital to accelerate the development of its platform and boost artist earnings.
Tune.FM on Wednesday announced a $20 million investment from LDA Capital according to a report by CoinDesk. The Web3 music streaming capital plans to use the cash to beef up its platform in an effort to boost artist earnings.
Tune’s platform is slightly different from other popular Web3 music streaming platforms in the sense that, artists receive micropayments when their music is streamed. Artists are paid in the platform’s native JAM token $JAM, but they can also make money by minting digital music assets as non-fungible tokens (NFTs) or digital collectibles.
This is not LDA Capital’s first major investment in a Web3 project. The global alternative investment group has been busy in the scene for the past couple of years. One of its biggest investments went to Rubix. The layer-1 blockchain protocol announced a $100 million investment from LDA Capital in July 2022.
A few weeks later, Aftermath Islands also announced receiving a $25M commitment from LDA Capital, and in December 2022, Digital Entertainment Asset‘s blockchain gaming project PlayMining announced a $10 million investment from the same investment group.
In September 2023, Web3 incubator and blockchain launchpad, Seedify announced a $10 million commitment from LDA Capital to accelerate its growth.
It is not clear whether all these fundraisings were cash upfront type of venture capital injections, or it was commitments pinned to the projects’ native tokens.
We reached out to LDA Capital to comment on the nature of their latest investment but they did not immediately respond.
In the CoinDesk article, Tune.FM said it plans to offer artists up to 90% of streaming revenue, highlighting the revenue sharing model in today’s streaming platforms as a major issue for artists.
****
Stay up to date:
Subscribe to our newsletter using this link – we won’t spam!
