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Monday, May 16, 2022

Afterparty Has Big Plans for NFTs

Non-fungible tokens, or NFTs, have soared in popularity in recent years and companies in Los Angeles and beyond are finding innovative new uses for the trendy digital collectibles.
One of those companies, West L.A.-based Afterparty Inc., has ambitious plans to use NFTs to transform the event-ticketing industry.

The company launched last year and quickly raised $3 million in seed funding to support development of an NFT platform serving artists and creators. On April 22, Afterparty announced that it had raised an additional $4 million and launched a ticketing service, which relies on NFTs rather than conventional paper or digital tickets.
Afterparty has already tested the new platform, staging a March music festival in Las Vegas at which attendees used NFTs released by the company to gain admission.

“We’re showcasing why an NFT is exciting to a consumer or to the average fan,” said David Fields, Afterparty’s chief executive.
NFTs are sold and traded on blockchain digital ledgers that can carefully track changes in ownership. Fields said the technology allows for Afterparty’s NFT tickets to be used for multiple events — including those that haven’t been scheduled yet. The company is planning another music festival in Los Angeles, and Fields said ticket holders for the event will get access to exclusive events and the opportunity to reserve passes for future festivals.

Fields said this gives fans incentive to test out the technology and fully buy into what Afterparty is doing.
“I was going to Coachella 20 years ago, at a time when it was not what it is today,” said Fields. “All of a sudden, when it started to sell out, I had to move to the back of the line.”
With NFT ticketing, said Fields, loyal fans can be rewarded with additional perks for early or frequent attendance.

“It’s something that gets you to understand the value of a lasting asset,” Fields said.
Afterparty is also betting that blockchain technology can benefit musicians and event organizers by allowing them to better control the ticket resale market.
“Artists and venues make 0% of secondary (ticket sales),” said Fields. “All of that is going to third parties.”

Digital contracts attached to NFTs could allow artists and venues to collect a cut when tickets are resold, he said. The advantages of the technology aren’t just limited to musical acts, he added. Afterparty is now exploring the possibility of using NFT ticketing for sports and other events.
“There’s a lot of excitement around this technology,” said Fields. “All these different groups just want to figure out the best way to utilize it.”

Paola Mendez
Paola Mendez
Paola Mendez graduated from Los Angeles Valley College, then transferred to University of California, and now serves as a Receptionist and Office Assistant to the Los Angeles Business Journal. Paola wears many hats in different departments and is trilingual in English, Spanish and French.

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