Katy Perry to Launch First-Ever NFT Collection with Theta Labs
Katy Perry Acquires Minority Stake in Theta Labs
It seems Katy Perry has also caught the NFT bug. The pop music star announced on Twitter that she will release a collection of nonfungible tokens(NFTs) in collaboration with Theta Labs, a decentralized video streaming platform based on blockchain technology.
The NFTs have been derived from Perry’s “Play” residency, which will see the singer perform at 16 shows in Las Vegas from December 2021 onwards.
Last month, Perry’s management firm, Creative Artists Agency(CAA) joined the Theta network as a validator node. As part of her deal, Perry will also acquire a minority stake in Theta.
With her collectibles lineup, Perry will join a savvy club of celebrities who’ve experimented with digital assets including Floyd Mayweather, Snoop Dogg, Paris Hilton, and Lindsay Lohan.
While NFTs have taken the crypto world by storm, their energy consumption remains a contentious issue. This is because Ethereum -- the blockchain used to secure NFTs -- is based on energy-intensive proof of work consensus. However, the Theta protocol is seeking to mitigate energy usage with its eco-friendly proof of stake model.
NFTs Witness Decline in Market Demand
Interest in NFTs exploded after digital artist Beeple sold his artwork titled “The First 5000 Days” for a record-shattering $69 million at an auction. Its buyer Vignesh Sundaresan was more than pleased with his purchase and even willing to spend more if it was needed. For Sundaresan, the auction represented a shift to a new era in the digital art space. However, he acknowledged that the wider populace would need more time to recognize the value of NFTs.
Since then, many artists, celebrities, and businessmen have successfully tried minting and selling their digital assets. But over time the mania around the sector has simmered down with sales plummeting in every NFT category. As of June 30, the combined sales of nonfungible tokens stood at $1.1 million, which reflects a 99% decline in sales volume.
Data seems to suggest that the NFT bubble might have burst for now, which makes Katy Perry’s entry into the market a little risky. It’ll be interesting to see how Perry’s NFTs perform after the hype for collectibles has dropped.