Napster Announces Plans to Launch Its Token on Algorand
- Napster was one of the foremost streaming services.
- The ALGO token has decreased by 6% and is now trading near $0.29.
Napster, a seasoned music streaming service, has announced plans to launch its $NAPSTER token on Algorand, signaling its entry into the Web3 market. Although a launch date hasn’t been specified, the business has published a Litepaper explaining its aspirations to expand its current music streaming ecosystem on the layer-1 blockchain.
According to the Litepaper, this move will open up all of Web3’s possibilities for both creators, fans, and other participants. Napster has been in the entertainment industry for several years and was mainly a peer-to-peer file-sharing platform focused on digital audio.
Napster Set to Leverage on Blockchain
The streaming company however stopped operating in 2001 and filed for bankruptcy in 2002 as a result of a wave of copyright litigation brought by the music industry. After being purchased by Best Buy in 2011, the firm was integrated with the brand until 2016 when Napster regained its identity.
Napster was later purchased by the blockchain company Algorand and Matt Zhang’s Hivemind Capital Partners in May 2022, and it kept operating as a subscription music streaming service. In its Litepaper, Napster noted that it was returning to its roots by launching its own token. It wrote,
Now, Napster is going back to its roots and will launch a decentralised musicfirst ecosystem to the benefit of fans,music makers and rights holders. These communities will be empowered by the adoption of the tools of Web3 to unlock meaningful new ways for artists to build sustainable careers on their own terms and for fans to get even closer to the music.
Napster said it will leverage the cutting-edge blockchain technology and present them in a way that music creators can easily embrace and adapt. The new $NAPSTER token will be issued under the supervision of a non-profit organization called the Napster Innovation Foundation. According to the Litepaper, there will be 10 billion $NAPSTER tokens available at launch. However, Matt Zhang, co-founder of Hivemind Capital Partners believes those figures do not count for much until further decisions have been reached.
Today we publish Napster Litepaper V1. It’s our vision of how #Napster 3.0 will benefit music makers, fans and rights holders. Skip the queue and download the paper here: https://t.co/kXd0Z5QOlE#web3 #blockchain #crypto #NFTs #streamingplus #music pic.twitter.com/ZaUQseCscG— Napster (@napster) June 29, 2022
The Use of $NAPSTER Token
Napster’s streaming service’s premium features, including access to exclusive artist content rights, will be made available for purchase using $NAPSTER. The token will play a huge role in the streaming giant’s digital ambitions. Additionally, it will be used to make purchases from a variety of Napster Network-compatible third-party applications.
Napster seems ready to expand its presence in the competitive digital space. Furthermore, the company plans to make available a number of open-source smart contracts for the production and exchange of digital material on the Napster Network.
Algorand is a blockchain platform that works similarly to a large payment processor. The Algorand platform’s native token, ALGO, is used to protect the network and compensate its operators.