Executive Summary
Music publishing companies, record labels, performance rights organizations, and other industry intermediaries have had too much power for too long. This unfair balance has always left content creators receiving less than they deserve — a condition which must change as Opulous’s society evolves and more jobs become automated, thereby shifting individuals into creative industries. Along with the development of blockchain, DeFi is one of the crypto world’s fastest-growing sectors and is set to shape the future of finance. It’s already started to break the stranglehold of banks and make people rethink the archaic processes established by traditional lenders.
Opulous is a decentralized peer-to-peer DeFi loan platform, providing artists with a more direct and accessible way to secure funding, while also offering everyone the opportunity to invest in the fast growing and lucrative industries: music.
Below I share my thoughts on Opulous, I will cover :
Market Assessment
How Opulous Works
Services Provided
Teams
Funding of Opulous
The Income Source of Opulous
How to Buy and Sale MFT
Investors of Opulous
Competition Landscape
Investment view
Resource
Market Assessment
Artists have real difficulty in obtaining loans from traditional banking because their greatest assets — the copyrights they own or share — are not accepted as collateral. The gap between the music industry and capital markets investors is curbing the potential of a sector set to double over the next decade.
How Opulous Works
Opulous provides a launchpad for the first music copyright backed NFTs as well as DeFi loans that will be changing how artists access the funding they need. Opulous is a bespoke tool for the music industry that recognises the value of royalty rights, backing entrepreneurial artists with the financial tools to grow. Through tokenization, the platform will leverage an otherwise illiquid asset, giving artists and other industry bodies the clout they need to raise finance.
Services Provided
Music Fungible Token(MFT, used to be S-NFT)
Each Opulous MFT represents a music copyright security token backed by the SEC and represents equal value which makes them much easier to trade. And this is a better way to split music copyright tokens into equal shares with everyone who invests in a particular song or album that has the same market value for each of their tokens. Now MFT is initially priced at $1. (like the stable coin?)
Features:
Represents part of the copyright:they can represent a stake in the music copyright of a song.
Source of copyright income:Royalty income generated from the real world.Royalty income sources:
Streaming: Spotify, Apple Music, Youtube, Amazon Music, Tiktok, etc
Download: downloads on ITunes, Amazon Music,etc
TV Broadcast: royalties are paid when the track is broadcast to TV
Radio broadcast: royalties are paid when the track is played on the radio
Public performance: public performance of musical works
Sync: adverts, games, films, trailers, TV programming
Divisible and can be easily traded for another asset of the same kind: All of MFTs are initially priced at $1(represents equal value means they are much easier to trade), offer fractional investments while ensuring that each fraction is equivalent to the next
Opulous is responsible for calculating and evaluating the value of Music Copyrights and the associated royalties involved, then redistributing those royalties payments to the MFT owners every three months through $OPUL tokens. (Opulous will match every royalty statement with the US dollar amount in OPUL tokens)
Lower investment risk:Opulous is the only company to offer NFTs backed by SEC-compliant music copyrights. MFT are treated as securities by the SEC and taxable as securities by the SEC.
(It’s important to note that these MFTs are under securities laws, and these regulations prevent the token from being traded on the open market within the first 12 months. After this lockup period, holders will be able to trade tokens on the Opulous platform.)
flexible way to purchase MFT:It can be purchased with fiat on third-party platforms such as Securities and Republic’s platforms or with $OPUL on Opulous Launchpad.
The performance of NFTs:
Issued:
Mona Lisa by Lil Pump (1 million followers in twitter)- successfully raised $500,000 from 859 investors on December 1, 2021
Patek Myself by ARD ADZ (41.6k followers in twitter)-successfully raised $52,149 from 156 investors in April , 2022.
Upcoming:Tyga (T-Raww-4.9 million followers in twitter)
Kyle (superdeperkyle.eth-288.5k followers in twitter)
The Opulous Launchpad (will be announced by the end of May)
Opulous Launchpad will help artists receive up-front funding through MFT fundraising campaigns, also offers bespoke generative artwork NFTs — which are one-of-a-kind digital artwork curated from the ground-up for each artist we work with.
Opulous generative artwork NFTs feature exclusive perks and unique benefits such as VIP fan experiences, VIP meet and greets, limited edition signed artist merch, and special access to Discord MFT groups for our presales.
DeFi Loans
Decentralized peer-to-peer DeFi loan platform which will be announced by the end of July
The definition of peer to peer:
The team of Opulous will use future music royalty earnings as collateral to offer loans to musicians and creators. In other words, artists can use their future copyright earnings as a guarantee to take out loans from the music loans pool.
Investors can stake their crypto assets(USDC) on this pool to generate high returns.
Features:
Opulous DeFi Loans are backed by real-world music assets and future royalties, musicians can fund new projects with DeFi loans up to the value of the royalties they generate over 12 months
(The platform will analyze a borrower’s music data and copyright assets to ascertain how much money they are eligible to borrow. It will then establish a custom loan repayment plan based on their predicted future earnings. And Note the music assets will be vetted by their Opulous’ specialized expert team, which reduces risks on investment.)
Provide low-interest loans (4%) to artists without affecting 100% ownership of the artist
The accuracy of calculating and evaluating of song’s royalty: Opulou already has direct integration with 76 music services streamlines repayments which makes the borrower’s music data more accurate
OPUL Staking
Stake OPUL on third-party platforms (such as Algofi, Huobi etc.) and OPUL POOL (will be announced at the end of May) to get more benefits.
Features:
OPUL staking pool offers passive income for all investors
Earn special access to MFT presales: For every OPUL token you stake, you accumulate a lottery ticket every day leading up to the MFT sale. Then, on the day the sale goes live, the system randomly draws a set of winners who are granted early access to the sale.
The use of staking:the amount of funds you choose is “locked” in your wallet for a predetermined amount of time and used by the network to validate its transactions and create new blocks on its blockchain.
The Opulous Music Fund (Q2 2022)
The pool is hand-curated by the Opulous team and centers around music copyright acquisitions. The fund will acquire the best music catalog assets from the top artists worldwide. Then, Whenever their music is streamed, purchased, or used in film and TV, it earns music royalties which are then distributed to the music fund pool members.
Generative NFTs
Use an algorithmic process to create one-of-a-kind artwork defined by individual items within the image, such as accessories, clothing, and other personal elements, so each artwork will be unique.
Currently, along with the sale of ARD ADZ S-NFT , Opulous launched their first generative artwork collection.
Features:
An upgrade of the fan experience: a portion of the generative NFT servesare as a bonus perk for investors during the S-NFT sales (Perks include incredible fan experiences such as tickets to headline shows, customized speakers, one-on-one Zoom calls, and even studio hangout sessions with Ard Adz)
Incentive for the next MFT launch: the remainder of the collection can be offered to collectors via the upcoming MFT launchpad.
Teams
Lee Parsons: Co-Founder and CEO, used to set up Ditto Music:--(44.4kfollowers) music distribution, management and label services for over 500,000 independent artists & release unlimited music on more platforms than anywhere else.
Miles Carroll: Co-Founder and COO, Miles also became Manager Director of Kosmos Capital, a world-leading investment firm focused on helping blockchain startups scale and integrate their products into enterprises. Miles has vast knowledge of blockchain technology and global financial markets.
Ivam César Costa: Community Manager, In 2020 he became an Algorand Ambassador to help promote their mission of bringing blockchain to the masses.
Mark Fitzgibbon: Chief Strategy Officer, Mark Fitzgibbon is a leading crypto writer, investor and blockchain researcher with more than 20 years of experience in technology. Mark has worked with cutting-edge blockchain projects such as API3 and Minterest Finance, and also works with the Ethereum Enterprise Alliance.
Funding of Opulous
Opulous has raised a total of $1.5M in funding in the Seed round on Feb 1, 2021 from 2 investors: Double Peak Group and Borderless Capital
Investors of Opulous
Jumptrading, Borderless Capital, SOMESING, BASIC, TRUSTVERSE,R3, BINANCE NFT, rand labs
The Income Resources of Opulous
Commission form from all NFT Launchpad sales
Interest from lending Pools and DeFi Loans
Portion of NFT Launchpad transaction fee
Sponsorship and brand deals
Transaction fees on the NFT exchange
Uncollected royalties from purchase (after 5 years)
How to Buy and Sale MFT
Pay through a bank account from the U.S. or via credit card.(payments are made in US dollars) to buy the MFT through Wefounder.
Cannot sell MFT now: these Music S-NFTS are securities, S-NFT holders won’t be able to trade these tokens for the first 12 months. After this lockup period, Opulous will introduce an exchange on the Opulous platform where anyone can buy and sell S-NFTs.
How to account the royalty income
Investment view:
Embed usability and future cash flow into token (future trend, more emphasis on the utility of token) Build the real connection with real world Easy to persuade investors to buy the MFT-the only one complied with SEC, lower investment risk Used to work with a lot of artists: CEO Lee Parsons is the founder of music company Ditto Music, which works with more than 50,000 independent musicians Promote the generative NFT, and a portion of it is used to improve the fans’ experience Focus on the combination of DeFi with the music industry: promote product innovations (launch the Opulous Loan , Opulous Exchange etc.)
Sources:
-CoinGecko (www.coingecko.com)
-www.crunchbase.com
-www.stakingrewards.com
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