Vinyl Group secures $1.6 Million deal to sell Digital Collections while expanding its market in the EU | Digital Collections through the Polygon Blockchain

In recent times, the musical artistic world has had to adapt to blockchain technology in order to pave the way for a new expanding market. Obviously, if it had not reached the current adoption level of cryptocurrencies and therefore scaling networks, this could be difficult to imagine.

Commonly, one might think that physical and digital collectibles are two independent things. But efforts are being made to integrate one into the other in order to access an enhanced presentation to enrich the customer experience.

Acquisition of Serenade by Vinyl Group

This is the step that Vinyl Group, an Australian company dedicated to the music industry, decided to take by acquiring the assets of Serenade, a platform focused on physical and digital collections, with whom an agreement was reached for a value of $1.6 million dollars.

This agreement involved a purchase of $553 thousand dollars in shares, plus one million dollars in shares to be used for certain financial goals. We are talking about a significant sum with which the group will be able to gradually expand, achieving a notable impact in the United Kingdom and Europe.

Vinyl's site was launched last year with the general purpose of somehow boosting the offering of musical products, digital collectibles, and other forms of representing experiences that bring fans closer to the creators of these music pieces. According to CEO John Simons, acquiring Serenade was a great strategy to achieve the set goals.

After the agreement was finalized, the market responded favorably with a rise in share price of over 8% on the ASX, reaching a three-week high of 0.06 dollars. When news like these spreads, the market tends to react in a way that could be an opportunity for those who understand how the financial environment works.

It is important to note that for this business between Vinyl and Serenade to prosper, it is necessary for earnings performance to reach $2.76 million in revenue and $345 thousand in profits, considering any taxes and interests that may arise within 12 months after the acquisition. In another perspective, it is expected that this pact will be productive and represent profits within a specific timeframe.

The link between physical and digital collections

One of the technologies being implemented in this market is NFC. Perhaps it sounds familiar to you because current mobile phones often include it. This technology allows for near field communication through a sort of electromagnetic induction. If I'm not mistaken, this technology is commonly used for payment cards, whether credit or debit, called "Contact Less".

Having somewhat of an understanding of what this technology is, we can understand that users will be able to acquire a physical collectible, with the feature of having this technology integrated, so that only a smartphone will be required to access certain content hosted on the blockchain.

In this case, the company decided that Polygon would be the most efficient to host these products. Remember that Polygon is a layer two blockchain, based on the Ethereum network. It is a scaling solution that is very useful and effective for seamless access.

The formats that will be accessible are digital content, such as music, music videos, or digital art. Let's say it's also a way to bring the user closer to their favorite artist. In this case, Serenade has made it possible for the works of the world's most renowned artists to be supported and recognized. It is estimated that the brand has supported over 200 artists, including impactful names like Liam and Noel Gallagher, Muse, and Sum 41.

Speaking of record labels that many may recognize, we have Warner Music Group and Beggars Group. Let's say then that we are witnessing a partnership that is driving something big and revolutionary.

At the moment, this idea of linking a physical collection to a digital one through NFC and using blockchain technology, specifically Polygon, is proving very convenient for the market and those who will love to acquire collections about their favorite artists or groups. It is noted that since this idea was adopted and launched in January, there has been a 56% month-over-month increase in sales.