*obligatory not financial advice*
What is Opulous?
Opulous is a platform on Ethereum and Algorand that makes it possible to tokenize copyrights for music, this brings DeFi to the music industry. With it artists can create unique NFTs of their music that collect royalty payments, even from non-blockchain platforms like Spotify, and can be sold in fractions. This not only gives artist a new way to monetize their work in a decentralized way, but it also gives fans the possibility to own a "share" of their favourite songs and earn part of its royalties. The NTFs on Opulous really hold value and rights for a piece of art, not like all the overpriced and glorified jpegs that are being traded for whatever reason.
Solana's recent pump was partly due to its music NFT platform Audius, Opulous is bringing a similar concept to Ethereum and Algorand, both are well established networks with many users and supporters. Algorand was chosen because of its speed, low fees and scalability. Ethereum was chosen because it is still the most established blockchain with NFTs and has the most liquidity.
The platform is currently very early in its development and right now they are working on exclusive NFTs with a few major artists and there is only restricted access for beta testers. Soon it will be open for everyone and it will have a NFT Launchpad, a NFT market and unique DeFi loans.
The NFT Launchpad
This will offer artists the possibility to sell fractions of the copyright of their new songs to raise funds for it. The process is similar to when a company sells shares, they get money and the investors get the chance to profit from the growth of the company. With the Launchpad fans can support their favourite artists and earn a fraction of the future royalties by buying fractional NFTs. Fans could also get special privileges like back stage passes, tickets or merchandise for owning an NFT. Artists could also advertise themselves by distributing NFTs to fans that share their work on social media, this would increase the chances that their song is shared because the fans too would profit from the song getting viral.
The NFT Exchange
The exchange will make it possible to trade copyright NFTs in a decentralized manner. Currently royalties don't have an open market that is available to everyone like the stock market, it is pretty much only possible for insiders and giants in the music industry to buy rights of a song. With such an exchange copyrights would become much more liquid.
The DeFi Loans
Opulous is the first platform that will allow decentralized loans that are collateralized by future royalty payments for copyright NFTs. The amount of money an artist could lend depends on how much royalties Opulous expects them to earn based on how much they made in the last 12 months. This is yet another way to raise funds for a project in the music industry. It will also be possible to stake both crypto and NFTs there to earn a higher yield.
The Opulous Token
The native utility token of Opulous is called OPUL and it exists on Ethereum and on Algorand. All transactions on the platform are done with OPUL tokens and the token holders receive part of all the fees from the DeFi loans and NFT trades. There is a limited supply of 500,000,000 tokens. Since it is needed to use Opulous and rewards its owners with fees, the demand for it will grow with the platform.
The founder of Opulous, Lee Parsons, is also the CEO of a global music distribution platform called Ditto Music. Its connection to Ditto Music alone could introduce more than 500 thousand musicians to Opulous and if it works well for them then it would convince more artists to join.
One major downside of the token is its vesting schedule. Over the first 35 months since the launch of the token in September 2021, there will constantly be tokens of early investors unlocked, which could bring some selling pressure as they take profits. The distribution is also very bad because a huge part of the supply was sold in private sales or given to advisors and partners.
Conclusion
Opulous and its OPUL token seem very promising. There is clearly demand for NFTs and unlike many similar platforms Opulous actually has NFTs with real value and utility. The recent rise of the popular AUDIO token shows that there is a demand for a merge of decentralized blockchains with music and yet there is almost no other competition there. But obviously OPUL is a moon shot right now, it’s far from finished and you shouldn't invest too much in it but with its low market cap is has much room to grow if it can keep its promises.
If you want to buy OPUL, you can buy it on Uniswap, but due to the gas fees it would be far cheaper to buy it on KuCoin, where you can trade USDT for it. You can also earn OPUL by buying YLDL token on Mexc and staking them on Yieldly, which I also wrote a post about.
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