Republic Launches Security NFTs, Gives Music Fans Benefits to Cheer About

Republic is offering musical artistes and music fans the opportunity of benefiting from the creation production streaming and licensing of music
Republic is offering musical artistes and music fans the opportunity of benefiting from the creation production streaming and licensing of music

Republic is offering musical artistes and music fans the opportunity of benefiting from the creation, production, streaming, and licensing of music. The financial services company will achieve this, through its blockchain platform Opulous. According to Republic, listeners can invest $100 in what it calls Security NFTs (S-NFTs). These S-NFTs differ from other common NFT offerings because of their reliable and secure nature. That is, it passes the Howey Test, being something that is worth investing in, and also has the potential of giving returns sometime down the line.

With this, artistes will now be able to directly raise production funds from fans. Not only that, the fact that music fans are now having a share in the music will undoubtedly encourage more streaming and engagement.

Speaking about the launch, Republic’s chief strategy officer, Pialy Aditya says by investing in the new platform, all investors will be part of an LLC. Aditya also added that the investment will give fans a sense of ownership. For starters, investors can take part in rapper Lil Pump’s new single titled “Mona Lisa.” More announcements will be made throughout the month of October, even as more artistes are coming on board.

How are S-NFTs different from NFTs?

This innovative move by Republic will see the pioneering of a notable framework that will be combining blockchain technology and S-NFTs. S-NFTs will be regulated by SEC, and investors must comply with the already established Know-Your-Customer and Anti-Money Laundering regulations.

Recently, NFTs have become a subject to SEC’s overseeing through a process called “fractionalization,” which is a fair enough concept in NFTs’ world. What this ultimately means is that, a number of investors can buy pieces of it, instead of a single person having ownership of the whole thing, thereby changing the item’s status to a security.

What is the implication of Republic’s move for NFT marketplaces

Security NFTs may pose serious problems in marketplaces like OpenSea. This is because, for starters, you’ll be needing a special license to sell securities. And then again, there are tax reporting implications that could arise from selling securities.