As the concerts and live events industry looks to rebound from the pandemic, a newly launched company aims to make buying tickets more beneficial for everyone.
Led by the co-founders of Fortress Festival, Fort Worth’s annual music event, DeFy Tickets has opened its blockchain-based platform, where tickets are sold as non-fungible tokens. April 30 Cowtown Crawfish Fest and June performances by rap stars Gucci Mane and Lupe Fiasco will mark the first concerts to go live on the platform.
“Over a period of time, five to 10 years, there will be no reason for anyone not to use NFT ticketing,” Alec Jhangiani, co-founder of DeFy and Fortress Presents, told Dallas Innovates. .
“A more efficient transfer of value”
Similar to other ticket purchasing platforms, using technology from the Netherlands-based GET Protocol Foundation, DeFy contracts with event organizers to offer smart tickets sold as NFTs. This ticket becomes tied to the individual buyer, providing more security and opportunities for fan engagement, Jhangiani said.
For ticket holders, the blockchain-based smart contract behind the ticket means they can be sure the ticket is not a fake. Jhangiani said tying it to an NFT opens the door to augmented experiences and increased engagement between fan and artist. For example, he said NFTs could be attached to items such as a live recording of the performance or artist-issued tokens, which only the ticket holder can access as an additional memento to the memories of the performer. concert.
Increases security and can prevent scalping
“The idea of NFT is that you can embed or include other elements with that ticket that wouldn’t necessarily come from a typical ticket,” Jhangiani said. “We see the potential here for an improved ecosystem, in terms of the relationship between artists, organizers and fans, a more efficient transfer of value.”
For artists and event organizers, Jhangiani said the main benefit of the platform is the security and control of the secondary ticket market. Since the ticket is linked to the blockchain, any transfer of this ticket is logged, which reduces fraud. It also helps prevent scalping in the secondary market, as Jhangiani said artists and organizers can arrange for tickets to not be transferable for more than the original set price or can add additional fees for the transfer. .
“Artists and organizers do not benefit at all from this margin that scalpers earn. It’s basically meant to remove that from the whole process,” Jhangiani said. “Every time there is a resale of that ticket, the original selling artists profit from it.”
Industry Leaders Help Launch DeFy
Fortress Presents, the company behind Fortress Festival and co-owner of DeFy, oversees the new platform’s strategy and operations. Its co-founders – Jhangiani and Ramtin Nikzad – were first recruited as advisers to the DeFy project. But then they were tapped to direct it, given their experience at Fortress Presents, which also operates outdoor music venue Wild Acre Live, and creative agency Fortress Creative, DeFy’s distributor. The two also helped set up the Lone Star Film Festival.
The DeFy team includes other industry veterans who help guide and grow its operations. Leif Osbakken, former senior account manager at Eventbrite and senior festival success specialist at Ticketfly, leads ticketing operations. Helping with the growth strategy is Zach Pharr, who also worked at Eventbrite and served as director of business development for Front Gate Tickets. Additionally, Evan McLaughlin, co-founder of mobile betting app Wayger, has joined the DeFy team as co-founder and chief technology officer.
NFT Market Cap Expected To Hit $80 Billion By 2025
As investment firm Jefferies expects NFT’s market capitalization to grow from $35 billion in 2022 to over $80 billion by 2025, DeFy sees a number of opportunities for growth. of its ticketing market. In addition to upcoming concert announcements, Jhangiani said he sees NFT ticketing being used for almost anything that requires a reservation, including things like restaurant reservations, hotel reservations, and event tickets. plane.
“Our priority now is to showcase this very strong use case and its benefits, and raise awareness of the number of different applications that could have it,” Jhangiani said.
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