Forget STO - Tokenize Intellectual Property (Machi X)

So I've been editing videos from my past two conferences and one of the topics that's really hot right now is how do we make tokens more valuable. You guys probably heard of the buzzword STO, security token offerings. And to be honest, I'm not bullish at all. I'm pretty bearish on that topic because of the regulations involved. I actually think we need to do something else out of the box. And in this interview, I talked to the guys from Machi X and what they're trying to do is they're tokenizing intellectual property. So instead of tokenizing a stock, they're tokenizing a particular song. So it's a way for artists to raise more money, giving up the rights or a portion of the rights to a particular song. But more importantly, why it's important for me is because it allows the community building that we see in crypto for that to be applied to music. Imagine if you own the rights to a particular Taylor Swift song and you can just cheer for it and show it to all your friends. And that's why I think it's worth looking at as a subject on this channel. Have you guys enjoyed the interview? And what do you guys think about this whole idea of IP tokenization? Leave a comment in the comments section below. So IP tokenization, we're looking to address intellectual property assets that aren't frankly being addressed today in today's market. Yeah, so along with this security tokenization trend, I think where people really aren't paying attention right now is this possibility of IP tokenization. To give you a more specific example, this is basically tokenizing a specific song from an artist. Specifically within the music community, artists today struggle with a lot of problems in terms of transparency, efficiency in their royalty payments, etc. And we're looking to solve that problem. Interesting study I saw from the Berklee College of Music in 2015, where they talked about how they estimate somewhere between 20 to 50% of all music royalties are not received by the rightful owner. And there's another study that estimated for each song, there's roughly 900,000 different royalty streams. And I think that's really hard to imagine, which is not that hard to believe why it is that 20 to 50% of music royalties are not paid out properly. It is important to help musicians to continue their craft and be able to really earn a fair and equitable wage efficiently. When I learned about the fact that Beethoven had about 10 patrons, when you think about how some of that music may not exist, if he didn't in fact have those 10 patrons. So from that standpoint, we're not doing anything different that wasn't done in history. We're providing a patron model that exists today in the tokenized setting. Not only are we solving the transparency and the efficiency and the disintermediation of the middleman problem. We're bringing back this old way of patrons, but in a way where patrons can share in the success of their artists. So it's like when you're listening to music and so saying, oh, you know, we got Taylor Swift on, you'd be like, ah, I participated in that. That's my, I'm a patron for that. That's for me. Yeah. And, you know, if not that I need any economic incentives to shill Taylor Swift music. But if I were able to own a piece of her IP and her song, and every time our story plays, not only do I feel like she's singing to me, I can also feel like, hey, I'm going to receive some economic value. Then I am going to not just be a super fan, but I might then go and push for that track to be played across all the movies I can find. You take a fan club and you juice it with the social aspect where it does. In fact, I think galvanize the community to say what else, how else can the community help? When an artist lists their token on a platform, we allow them then to be a vetted admin. And that's going to be unlike the troll box on, on Poloniex where anybody can say anything about anything. And it's not really tied to the specific asset. We're going to make a platform by which that the users are, you can only participate if you own that token. And then the admins can only exist if they're the issuers of the token or affiliates of these issuers. So you're either going to fix a problem or build the biggest troll army in the world. Yeah. Yeah. Well, it depends on how the artists want to manage this troll army. I mean, it can be the most hateful troll army that really gets to whatever it is the artist wants. Or it could be the most friendly, hug it out people who can then go help the artists in whatever way they want. But I think this creates a very interesting new model by which fan artist interaction can occur. So you're talking about an exchange as well. So would they be able to just freely exchange these tokens that they buy? How would that work? So the exchange portion of it works just like any other crypto exchange at this point. So you have a tokenized asset, much like Ethereum. And then you have some kind of exchange rate. You have your bid and ask. And it works just like any exchange like Binance or anybody else. Right. So it's just like an exchange, but then not for utility tokens, but rather for just a specific kind of artist specific album. Right. So this is kind of something that you want to work out with the individual. So it depends on what they want as well. Yeah, that's right. So an artist can decide, I want to go ahead and sell 10% of my perpetual rights to my song or 2% or 50% or 100%. So this creates a new tool and supporting the artist community in order to say, I don't just have this one choice of waiting for the industry to give me my money on these three, six months timeframe. I have now another option where I can fund my venture, where I can fund my creativity, where I can fulfill my dreams with this other option. So in terms of your, you know, you can't come here empty handed. I mean, obviously you probably spoke to artists before and the bands can give us specific examples of bands you've spoken to or yeah. So within Jeff's portfolio of his other line of business there with the unicorn entertainment. There are a few different artists there within the Machi entertainment space. That's where the name comes from, right? Yeah. Machi Entertainment is a Machi X for the exchange. That's true. So, so Nikki Lee in, in East Asia is also very popular. And then his own brother, Stanley Huang, who's won multiple awards in Taiwan as well. And Stanley Huang also is an advisor for Machi X. Oh, right, right, right. So I think what's interesting here is not only do we have the background and credibility within the blockchain space through the myth world community, we also have the right people and the right ownership of certain IPs already. So it's not that we're going to build this thing out and hope that we can get IP to work with us and the owners of IPs to work with us. It is rather that we have a portfolio of IP that we can start with to really build out this minimum viable product, at least, and showcase the impact we can have in tokenizing IP. So, so you're doing this exchange. When do you think this exchange can be launched? Like what's the timeline structure for this whole project? We're very aggressive right now. And I'm very lucky to say that our colleagues on the engineering team has been building this exchange already. And so we're targeting the end of the year for a launch and the technical platform portion where you can just do all the things you can on a regular exchange, sign up for an account, go through the KYC AML process, have an account to trade. And then from there, we anticipate we will have actual songs trading by the end of the year. Okay. Now you have a Demachi X token as well. Yes. So now what's a token used for? So the token is very simply a exchange token at this point. No different than Binance token being able to pay for a discount on the trading fees. You know, my business partner and co-founder Jeff likes to say that in the music industry, he's always getting screwed by technology. When he looks at YouTube and Musical.ly and all these platforms that made money off of the backs of the content creators who don't give anything back. And these days, he and other content creators have to go to YouTube to negotiate. Oh, can we get a little bit more of this red share? But in reality, these technologies wouldn't exist without the content. So he's trying to give back and say, how do we take technology and build it back into the content creators? How do we give value back to the content creators? And this is it. You tokenize assets and you give them another option. You let them galvanize their fans. You know, let them take value out before waiting for this three to six month value payout. And that is how technology can really help the content creators.