Music streaming

Music streaming company Napster will launch its own token on Algorand

Veteran music streaming app Napster makes its way into the Web3 space, with the announcement of a planned $NAPSTER token launch on Algorand.

The company released a light paper outlining its plans to expand its existing music streaming ecosystem on the Layer 1 blockchain, although a launch date has yet to be announced.

“Napster will unlock all the opportunities of Web3 for fans, rights holders and music creators”, reads light paper. He added that Algorand’s blockchain is “the only carbon-negative blockchain infrastructure currently in existence.”

What is Napster?

Co-founded in 1999 by Sean Parker, later founding chairman of Facebook, Napster was originally a peer-to-peer file-sharing platform focused on digital audio.

Following a wave of copyright lawsuits from the music industry, the company went out of business in 2001 and filed for bankruptcy in 2002.

In 2011, the company was acquired by Best Buy, which merged it into its Rhapsody brand; the Napster brand was later relaunched in 2016.

In May 2022, Napster was acquired by blockchain company Algorand and by Matt Zhang Hivemind Capital Partners, which continued to offer its paid music streaming service.

According to his last public repositoryNapster recorded revenues of £32.9m in the first half of 2021, compared to £0.2m in the same period last year.

Why the $NAPSTER token?

Napster plans to issue $NAPSTER tokens under the umbrella of a non-profit organization, the Napster Innovation Foundation. At launch, there will be 10 billion $NAPSTER tokens.

“While the supply of $NAPSTER tokens should be capped at 10 billion coins,” Matt Zhang, co-founder of Hivemind Capital Partners, said Bloombergthe figure was “meaningless” until “further decisions are made on how the token will operate”.

According to its litepaper, $NAPSTER will be used as a payment method for purchasing music subscriptions, exclusive rights to artist content, and access to premium features on the company’s streaming service.

It will also be used to purchase goods and services through different third party applications interoperable with Napster Network.

Napster will also release a series of open-source software smart contracts regarding the creation and distribution of digital content within the Napster network.

Algorand (ALGO) has fallen 6% in the past 24 hours and is currently trading around $0.29.

ALGO is down 92% from its all-time high of $3.28 recorded in June 2019, according to data from CoinMarketCap.

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