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OpenSea Removes Rihanna Music Royalty NFTs Amidst Fractional Ownership Controversy

OpenSea Removes Rihanna Music Royalty NFTs Amidst Fractional Ownership Controversy
OpenSea Removes Rihanna Music Royalty NFTs Amidst Fractional Ownership Controversy

In a recent development that has sent ripples through the digital collectibles space, OpenSea has removed an innovative NFT collection tied to Rihanna's musical legacy, just days before the superstar's highly anticipated Super Bowl halftime performance. The marketplace delisted tokens representing royalty rights from her 2014 hit "Bitch Better Have My Money," raising questions about fractional ownership policies in the blockchain music NFT ecosystem.

The initiative originated from Jamil "Deputy" Pierre, one of the original producers of the track, who partnered with AnotherBlock, a specialized platform focused on music royalty rights NFTs. This collaboration aimed to revolutionize how fans can participate in artists' success through blockchain technology.

Upon release, the collection experienced overwhelming demand, with all 300 units selling out at $210 each, resulting in $63,000 in total sales. Each NFT represented a fractional stake of 0.0033% in future streaming royalties, offering investors a unique opportunity to benefit from digital music consumption.

However, the excitement was short-lived. Just two days later, and coincidentally a day before Rihanna's Super Bowl appearance, Michel "bigmich" Traore, CEO of AnotherBlock, announced in a Discord update that OpenSea had abruptly banned the collection. This decision triggered significant backlash within the AnotherBlock community, with many questioning the inconsistency of OpenSea's enforcement.

OpenSea defended its action by citing violations of their terms of service, specifically prohibiting listings that "appear to promise fractional ownership and future profit based on that ownership." This explanation left AnotherBlock representatives perplexed, as they pointed out similar collections like Royal.io (created by electronic musician "3LAU" Blau) continue to operate on the platform without facing comparable restrictions.

"We have also raised why similar collections such as Royal.io and Corite remain tradable on their platform in our communications, yet received no substantive response," stated a community lead from AnotherBlock, highlighting what appears to be selective enforcement of policies.

Despite the OpenSea delisting, the Rihanna music royalty NFTs remain available on AnotherBlock's marketplace and on Blur, though some community members have expressed concerns about the potential impact on floor prices due to the reduced visibility and accessibility.

Remarkably, the collection's value has surged on AnotherBlock, with the current floor price at 0.55 ETH (approximately $867), marking a 330% increase from its initial mint price of 0.128 ETH. Total trading volume has reached 155 ETH (about $245,000), demonstrating strong market interest in celebrity music rights NFTs.

AnotherBlock, established in 2021 by entrepreneurs Michel D. Traore, Sebastian Ljungberg and Filip Strömsten, provides a comprehensive marketplace for fans to buy, sell, and trade royalty rights for songs from prominent artists including Offset, Metro Boomin, and The Weeknd. The platform's internal documents, reviewed by CryptoSlate, indicate annualized yield returns for initial NFT offerings potentially exceeding 11%, presenting attractive investment opportunities in the growing music NFT sector.

AnotherBlock rate of annualized yield (Source: AnotherBlock)
AnotherBlock rate of annualized yield (Source: AnotherBlock)
tags:music royalty NFT marketplace platforms fractional ownership music NFTs legal issues OpenSea NFT delisting policy controversy celebrity music rights blockchain tokens NFT royalty investment opportunities
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