Saxo Bank on NFT, based in Denmark, has produced a list of ten “outrageous predictions” for the coming year, including one that says digital rights platforms based on non fungible tokens (NFTs) have the potential to undermine Spotify’s stronghold in the worldwide music distribution market.
In a statement, the bank notes that its predictions are based on a number of unlikely but undervalued occurrences that, if they materialise, may send shockwaves across the global financial markets.
“Musicians are ready for change because the existing music streaming paradigm allows labels and streaming platforms to keep 75-95 percent of the revenue generated by streamed music listening. New blockchain-based technology will help them reclaim their rightful share of industry income by 2022, according to the Danish bank.
While the early days of NFTs may have been “chaotic and perilous for asset buyers,” the Danish bank believes the technology’s future is bright.
According to Saxo Bank, “not only does an NFT-based platform offer a new mechanism to verify the ownership of rights, but it also offers a way to distribute rights without intermediaries, i.e., a truly decentralised system that eliminates the need for a centralised platform.”
Many musicians believe that present streaming platforms’ income sharing methods do not treat them fairly, which could increase the case for NFT-based platforms, according to the projection.
According to Saxo Bank’s scenario, an NFT-based service will be released next year and will begin to offer music from well-known artists such as Katy Perry, The Chainsmokers, and Jason Derulo. Other well-known musicians are following in the footsteps of the celebrities, pulling their songs from “conventional” streaming sites.
As a result, investors begin to see Spotify’s future as grim, sending the platform’s stock down 33% in 2022, according to the projection.
But this isn’t the only “outrageous” prediction they’ve made. Others include:
- The attempt by Facebook’s parent company Meta to re-engage the youth with the Metaverse fails, as this demographic continues to flee its platforms in protest of data mining for profit.
- The Reddit Army of Women Traders launches a concerted assault on corporations with a poor track record on gender equality, resulting in massive swings in stock prices for the companies targeted.
- The EU establishes a USD 3 trillion Superfund for climate, energy, and defence, which will be funded through pension contributions rather than additional taxes.
- Policymakers support fossil fuel investment to combat inflation, giving the plan to phase out fossil fuels a reprieve.
- Inflation in the United States exceeds 15% due to a wage-price spiral;
- The midterm elections in the United States have thrown the country into disarray;
- India becomes a non-voting member of the Gulf Cooperation Council.
- A tremendous hypersonic weapons race emerges among major forces as no country wants to be left behind in the space race and the new cold war.
Saxo Bank claims to serve more than 810,000 clients globally, with more than USD 80 billion in client assets.
