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iTCHY Music's new ICO, bets on the Blockchain to Yield Higher Valuations for Creative Works
One of the world's fastest growing indie labels has reinvented itself through an innovative way to benefit from the rise of cryptocurrency in the entertainment industry.
iTCHY Music Group has become the first independent media agency to "tokenize" it's global company of brands under one consolidated financial platform which includes iTCHY Music, iTCHY Media, iTCHY Metal Entertainment and iTCHY Worldwide.
Using an Ethereum application toolkit powered by Singular's Tokit platform, the company plans to launch their initial coin offering (ICO) in the first quarter of 2018. The new, iTCHYCoin (ITCHY) enables their artists and partners the ability to embed intellectual property rights, revenue, and royalties into a programmable, cryptocurrency token. This allows token-holders to share in the revenue from iTCHY's future growth as a global brand and company.
Originating on the Las Vegas music scene in 2010, iTCHY Music Group quickly established itself as one of the faster growing independent media agencies of the time. At peak, the label's roster would include independent musicians, film-makers and authors made up of over 60 artists and 18 partners across 17 countries.
iTCHY's leading acts would go on as contenders in the 55th Annual Grammy Awards, with considerations in the Rap, Rock and Heavy Metal music genres. Soon afterwards, the company announced plans to reinvent the business due to changes in the industry and declining music sales.
During the hiatus, the brand momentum continued and in 2015, iTCHY launched a new, global marketing division. Simultaneously, the rise of the crypto currency market exploded onto headlines and the underlying technology would inspire a new business strategy for the innovative agency.
iTCHY's original founder and CEO, Ed Fassio explains further:
"We remained patient like a sleeping giant. Waiting for the right time in the market while continuously researching new technologies and business partnerships. We were looking for something unique that could re-infuse value back into art in a measurable, monetizable way. When we came across the blockchain, we knew this was a game-changer,"
He continues, "The ITCHY Coin isn't just a cryptocurrency, it's much more than that. Now, our artists, partners, fans and supporters can share in fueling our inspiration and success by also owning the rights and royalties of literally anything we create and distribute through our media and product channels. If you hold 100 ITCHY tokens, then you own 100 tokens worth of the entire company you helped create. More than that, it challenges today's price-control dynamics and allows the value of creative content to be market driven."
Elaborating on the decision to launch the company's own cryptocurrency, Fassio adds:
"Labels and corporate interests have traditionally held all the cards when it comes to control. Most of that was driven by the need to sustain profitability. At the same time, this is where artist creativity was censored. Artistic genius was literally stifled. Without compensation, there is no incentive and without incentive, there's less motivation.
With ITCHY Coin, that changes. If there is demand or interest in a creative project, regardless of what it is, anyone can invest in it through the token. The more investors, the bigger the valuation and that means a much larger potential return on investment than ever before.
Even if you know zero about cryptocurrency and stock markets, the average person will understand that investing in a company early, affords the opportunity to reap significant returns when it grows. The traditional label was never designed to offer this platform and they took advantage of artists that were less business savvy. We get to change all of that through ITCHY Coin."
Using the blockchain increases visibility and trust
Using Ethereum's distributed ledger increases both security and transparency of all transactions. Investors can easily open a free, personalized Crypto wallet online through popular services such as Coinbase and MyEtherWallet. There, they can exchange traditional fiat currency into Ethereum (ETH) and use it to secure ITCHY Coin.
With the launch of the new token, iTCHY will seed this initial funding round through their Initial Coin Offering. iTCHY partnered with Blockchain entertainment studio SingularDTV to create the iTCHYCoin (ITCHY) token.
In this new model, iTCHY artists and partners get crypto signing bonuses as part of the ICO incentive package. They can hold, exchange and even transfer them at will. Some will use ITCHY Coin as the preferred way for fans to pay for their products, shows and services because just like other cryptos, when the price of ITCHY token goes up, the financial benefit also increases.
Betting on the Blockchain to Revolutionize the music industry
Although the future of crypto is speculative and the markets continue to be highly volatile, major companies and investors are already placing big bets on the underlying blockchain technology. This is early indication that the future evolution of crypto as a mainstream currency continues to look promising.
"We're at version 1.0 of this new, digital economy," says Fassio. "We'll need to watch developments in the blockchain that can support even larger-scale transactions as the interest and demand increases. We also need an educated public in order to drive sustainable adoption and usage."
"In about a year or less, we could have 100,000 transactions per second, and at that point you'd be able to handle the surge of a big artist release or a major tour. Things can get pretty exciting, quickly."
To that purpose, iTCHY finds itself as an innovator, procurement agent and timely educator. All roles this disruptive innovator knows exactly how to embrace.
For more information on the ICO, visit the Investors section of the official iTCHYMusic website at www.itchymusic.com