TikTok, a social media network, has made its first steps into the non-fungible token (NFT) market, with a new collection inspired by the site’s most popular influencers.
On September 30, the fastest growing social media company introduced TikTok Top Moments, a new programme that allows artists to be recognized and paid for their work via digital tokens.
The NFT drops will be published on Ethereum, and will be powered by Immutable X, a brand new scaling solution for layer-two NFT protocol.
TikTok Top Moments is said to have a number of TikTok videos from the in-app famous content creators. Each one is intended to recognize these artists’ contributions to the development of TikTok, which has grown to become one of the world’s largest social media.
According to the company, the sales proceeds will be paid directly to the content creators and NFT artists.
Sales Profit Allocation Is Yet To Be Confirmed
However, the company declined to disclose precise percentages of the proceeds. According to TikTok, the majority of the revenues will be transferred to the NFT creators, whilst the remaining money will be split between Immutable X, which is in charge of the set’s NFT trading and the Museum of the Moving Image, who will also receive the benefits as they are the host for the next awaited TikTok exhibition.
TikTok is not expected to benefit from the sales, and the weekly releases of limited edition NFTs will be provided at reasonable pricing points to ensure that each creator’s followers can own “a piece of their history”.
NFTs have emerged as a major driver of blockchain adoption, with both businesses and individuals keen to embrace digital collectibles as a way of improving their financial security. August was the busiest month in the NFT sector’s history, with total NFT sales exceeding $4 billion (£2.95 billion) for the first time.
While “owning” a famous TikTok NFT may seem like a fun idea, it is important to consider the environmental implications.
NFTs and other blockchain-based businesses have the potential to use massive amounts of energy.
Despite Immutable X’s claims that the NFTs which it helps TikTok mint are carbon neutral, not all NFT marketplaces or NFTs are created equal.
What’s Next For TikTok In The NFT Era?
Recent reports are saying that the company has established a collaboration with blockchain streaming platform Audius to create a new product called TikTok Sounds. In this collaboration, Audius users will be able to export music created using the protocol to TikTok.
TikTok has about 1 billion users globally, with the app’s audience in the United States increasingly depending on it to discover new artists and music. Since the business debuted its mainnet services in October 2020, Audius’ user base has grown to 5 million.
On a larger scale, we could say that TikTok seems to be progressively moving its emphasis away from social media and toward blockchain technology as part of its larger business strategy.
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