LONDON, Jan. 16, 2024 /PRNewswire/ -- TRAX, a London-based web3 music startup, has successfully raised a $2.9m* decentralised funding round on the Internet Computer ($ICP) blockchain. Following the completion of the raise, TRAX will operate as a decentralised autonomous organisation (DAO) democratically controlled by holders of TRAX's new governance token, $TRAX. The funds raised will be held in TRAX DAO's treasury, allowing $TRAX holders to decide on how best to utilise them.
TRAX is a content aggregator and social marketplace helping artists build a digital space for their superfans. Superfans spend 80% more on music each month than passive listeners[1] and represent a $USD4.2b addressable market according to Goldman Sachs' Music in the Air Report[2].
TRAX's goal is to give artists the opportunity to grow their communities and increase revenue via exclusive content and events. Fans are naturally more partial to supporting their favourite artists, but major music platforms have yet to reflect this nuance in their algorithms and pricing structure.
"[Fans are] looking for a less anonymised music experience. When a fan buys content on TRAX, they're actively building a relationship with artists that supports future projects and brings everyone in the community closer together" explained Henry Wilson, co-founder & COO of TRAX, in an interview with Wonderland Magazine last year[3].
In October 2023, TRAX's 'Class of '24' artist campaign saw ten up-and-coming global acts - including UK climbers DEIJUVHS and Master Peace - celebrate unreleased music with their top fans. TRAX is now looking to strengthen its status as a leader in the web3 music space with the ability to onboard and grow artists in the superfan economy.
Last week Universal Music Group Chairman and CEO Lucien Grainge hailed the superfan opportunity as a major turning point for record labels and artists "The next focus of our strategy will be to grow the pie for all artists, by strengthening the artist-fan relationship through superfan experiences and products"[4].
"With our decentralised funding round complete, TRAX is seeking opportunities to maximise the benefit we provide to artists through partnerships, events, and other bespoke opportunities, in the UK and around the world." CEO Tom Stuart commented.
TRAX completed its raise on 23 December 2023, amassing a treasury of over 314,000 $ICP[5] (approximately $USD2.9M at time of raise*).
* TRAX DAO's treasury was valued at over $USD2.9m at the time of the raise (23/12/23). Following price action, the treasury is now valued at approximately $USD4m (15/01/24).
Press release courtesy of Trax Media Ltd.
References:
[1]. https://luminatedata.com/reports/midyear-music-industry-report/
[2]. https://www.goldmansachs.com/intelligence/page/music-streaming-services-are-on-the-cusp-of-major-structural-change.html
[3]. https://www.wonderlandmagazine.com/2023/10/24/trax/
[4]. https://www.musicweek.com/labels/read/umg-s-sir-lucian-grainge-reveals-expansion-of-artist-centric-strategy-by-targeting-superfans/089074
[5]. https://nns.ic0.app/project/?project=ecu3s-hiaaa-aaaaq-aacaq-cai
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