Project to launch $NAPSTER token as part of business restructure Brevan Howard’s cryptocurrency arm joins consortium of investors Napster, the brand that became synonymous with free music in the eyes of a generation of consumers, plans to restructure its business around cryptocur

2024/05/2515:25:33 finance 1795
  • The project will launch the $Napster token as part of a restructuring of the business
  • Brevan Howard’s cryptocurrency arm becomes one of a consortium of investors

Project to launch $NAPSTER token as part of business restructure Brevan Howard’s cryptocurrency arm joins consortium of investors Napster, the brand that became synonymous with free music in the eyes of a generation of consumers, plans to restructure its business around cryptocur - DayDayNews

Napster, the brand that became synonymous with free music in the eyes of a generation of consumers, plans to restructure around cryptocurrencies and NFT its business, even as consumer demand for such assets has declined.

The streaming platform’s revamp is part of an acquisition by Hivemind Capital Partners, the cryptocurrency venture of former Citigroup executive Matt Zhang. Zhang and Napster CEO Emmy Lovell said the UK-based company plans to launch its own token, $NAPSTER, which music fans can use to purchase tickets and experiences with artists on the new platform.

Napster’s move follows LimeWire’s similar rebirth and threatens to put it at odds with crypto-native platforms like OpenSea, which are looking for new ways to expand in the digital realm. NFTs are a form of digital collectibles that surged in popularity last year, but demand has since faltered, with one in three such items recording little trading activity after their initial launch. NFTs have also been a hotbed of copyright infringement battles, with high-profile lawsuits already emerging between music industry figures and speculators.

This has not stopped the development of Napster, which has experienced several sales since it was first shut down in 2001 due to prosecution for copyright infringement. The company re-adopted the Napster name in 2016.

Lovell said of Napster's early days in an interview: "Obviously, it was completely illegal, and there was a big backlash. But it did still continue to have a reputation as a disruptor and industry innovator."

Previously, since late 2020 After listing on London's Alternative Investment Market, Napster in January transferred nearly all of its assets to a new private company, , in a process that valued the money-losing business at $45.6 million. Napster reported revenue of £32.4 million ($39.5 million) in the first half of 2021 in its most recent public filing. During the same period, Spotify company's revenue was approximately 4.5 billion euros ($4.75 billion).

Zhang and Lovell said the new Napster platform will run on blockchain provider Algorand's network, but declined to provide a timetable for a full launch. Algorand and British billionaire Alan Howard’s cryptocurrency fund Brevan Howard Digital Assets were among a consortium of buyers involved in Hivemind’s acquisition of Napster, which closed in the first quarter for an undisclosed amount.

use case

With the new token, Napster plans to meet the needs of music listeners, rights holders and artists, hinting at future services including live music experiences and merchandise sales in a so-called "lite document" published last Wednesday. Products will be limited at launch because the project is still in its early stages, Zhang said.

While the supply of $NAPSTER tokens is set at 10 billion, Zhang said that number is “meaningless” until further decisions are made on how the token will operate. The coin will be managed by the Napster Innovation Foundation and will provide rewards to stakeholders, denominated in $NAPSTER. Ultimately, $NAPSTER holders may also have a say in how the business is run.

Zhang admitted that while it is easy to launch a token, some tokens are brought to the market without considering what the next step is and whether they are sustainable or add any real value. Bitcoin has plunged nearly 70% from its all-time high, driven by tightening monetary policy by central banks and a series of high-profile cryptocurrency explosions.

He said: "Despite the short-term volatility in the market, personally I am still very, very optimistic that this will actually lead to real use cases and lasting value that will actually bring to many industries Paradigm shift. Music will be one of them.

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