Research Summary
The report discusses the success of Sound.xyz, a blockchain-based music platform that has minted over a million songs. It highlights the platform’s unique features, such as tokenized limited edition releases, fan engagement, community building, and curator rewards. The report also emphasizes the importance of scalability, mobile optimization, and user-friendly payment options in the success of onchain apps.
Key Takeaways
Sound.xyz’s Success in Numbers
- Impressive User Engagement: Sound.xyz hosts over 1,300 artists and is used by 850,000 collectors. The platform has settled over a million mints and has done $4.2 million in total minting volume.
Unique Features of Sound.xyz
- Tokenized Limited Edition Releases: Artists on Sound.xyz can release a limited number of tokens for a particular song, allowing fans to become exclusive owners of that edition.
- Enhanced Fan Engagement: Token owners on Sound.xyz can receive special perks such as access to exclusive online events, Q&A sessions with the artist, or behind-the-scenes content.
- Community Building: By owning a token, fans become part of a community centered around the artist, fostering discussions, fan art creation, and a deeper connection with the artist.
- Curator Rewards: Sound.xyz rewards curators who share songs, create playlists, or embed songs and playlists into websites, blogs, or newsletters. They earn 5% from every primary mint generated from referral links.
Scalability and Mobile Optimization
- Building on Layer 2: Sound.xyz is built on Optimism and Base, Layer 2 solutions that offer lower gas fees and faster transactions, enabling the platform to support millions of artists and billions of users in the future.
- Mobile-First Approach: Sound.xyz prioritizes mobile experience, launching an app before opening to the public. The platform also acquired Soho, a leading mobile app for digital collectors, to further enhance its mobile experience.
User-Friendly Payment Options
- Flexible Payment Methods: Sound.xyz allows users to pay with a debit or credit card, in addition to $ETH. Users can also choose to use their existing wallet or deposit $ETH to a wallet that Sound creates for them.
Effective Marketing Strategies
- Partnerships and Celebrity Endorsements: Sound.xyz has partnered with Coinbase Wallet and enlisted big artists like Snoop Dogg to post exclusive tracks on the platform, effectively spreading awareness and attracting users.
Actionable Insights
- Explore the Potential of Onchain Apps: The success of Sound.xyz demonstrates the potential of onchain apps in transforming industries. Businesses and investors should explore opportunities in this space, particularly in sectors where tokenization can add value.
- Consider the Importance of User Experience: Sound.xyz’s focus on user experience, through features like mobile optimization and flexible payment options, has contributed to its success. Companies developing onchain apps should prioritize user experience to attract and retain users.
- Recognize the Value of Community Building: Sound.xyz’s community-building features have fostered a strong user base. Businesses should consider how they can leverage similar strategies to build and engage their own communities.
