For the Record: Bye Bye Blockchain – Why it Won’t Change the Music Business

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Bitcoin bubble, toil and trouble, it’s not much good so losses double.

. That makes sense: The big problem with rights data has always been that it’s incorrect or incomplete. Blockchain is a distributed database that allows users to track changes, but it can’t fix incorrect or missing information.

Five years ago, the startup Choon had a plan to track music use with Blockchain and pay rights holders immediately with a digital currency called Notes. It went out of business in 2019, as Notes fell in value along with Bitcoin. The following year, Choon co-founderlaunched Rocki amid the pandemic and exchanged outstanding Notes for Rocki tokens at a 50:1 ratio. Since then, “Rocks” tokens have gone from being worth about 5 cents each, up to an April 2021 high of $5.

Bitcoin and NFTs aren’t going anywhere — some investors see the “crypto winter” as a buying opportunity, while others just want to HODL. But the collapse of FTX will inspire investors, and hopefully government agencies, to ask more questions about whether celebrities who buy and sell NFTs are being transparent enough about their transactions — especially since the fans they influence may buy into investments in a way that help those who already own them.

Like many online technologies, Blockchain and Bitcoin offered a utopian dream of decentralization, free from government regulation and control. When it comes to finance, however, government regulation isn’t a bug, to use the technology phrase — it’s a feature. Just ask anyone who had money with FTX, which wasn’t insured by the Federal Deposit Insurance Corporation the way U.S. banks are.

 

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It started out as being worth US$0.0008 😁

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