The popularity of non-fungible tokens (NFTs) has skyrocketed in recent years, and companies in Los Angeles and beyond are finding innovative new uses for trendy digital collections.
Afterparty Inc., based in one of those companies, WestLA, has an ambitious plan to transform the event ticket industry with NFTs.
Launched last year, the company quickly raised $ 3 million in seed funding to support the development of an NFT platform that serves artists and creators. On April 22, Afterparty announced that it had raised another $ 4 million to launch a ticketing service that relies on NFTs instead of traditional paper and digital tickets.
The afterparty is already testing the new platform, and the March music festival was held in Las Vegas, with attendees admitted using the company-released NFT.
“NFTs showcase why it’s exciting for consumers and the average fan,” said David Fields, CEO of Afterparty.
NFTs are sold and traded in blockchain digital ledgers that allow you to carefully track changes in ownership. According to Fields, this technology will allow after-party NFT tickets to be used for multiple events, including events that have not yet been scheduled. The company is planning another music festival in Los Angeles, and Fields said ticket holders for this event will have access to exclusive events and the opportunity to book a pass for future festivals.
According to Fields, this gives fans the incentive to test the technology and fully agree with what the afterparty is doing.
“I went to Coachella 20 years ago, but it wasn’t today,” Fields said. “Suddenly, when it started to sell out, I had to move to the back of the line.”
According to Fields, NFT tickets allow loyal fans to get additional benefits with early or frequent participation.
“It’s something that makes you understand the value of a lasting asset,” Fields said.
Afterparty is also confident that blockchain technology can benefit musicians and event organizers by giving them better control over the ticket resale market.
“Artists and venues make up 0% of the secondary (ticket sales),” Fields said. “Everything is sent to a third party.”
He said the digital contract attached to the NFT could allow artists and venues to collect cuts when tickets are resold. He added that the benefits of this technique go beyond musical activities. After parties are currently exploring the possibility of using NFT tickets for sports and other events.
“There’s a lot of excitement about this technology,” Fields said. “All these different groups just want to find the best way to take advantage of it.”