The startup behind the Kings of Leon’s foray into crypto is looking to disrupt the $15 billion live entertainment resale market with its own ticketing app.
YellowHeart and its app, “YellowHeart Wallet,” which was released Thursday, uses Ethereum and Polygon integrations to store tickets as non-fungible tokens (NFTs) in the app’s wallet, the company said in a press release.
Tickets can be purchased within the app using both crypto and fiat payment systems. The NFTs change their artwork once scanned, adding an element of collectibility for those who attend the event.
Just got my tickets for @MetaKovan’s @metapurse Dreamverse Gallery & After Party as an NFT!, designed by @money_alotta, best ticket ever! 😍 And there are still people that don’t believe in NFTs future 😁… wgmi
Can’t wait for November 🗽❤️🔥 #NYC
& My tickets to get its colors 🔥 pic.twitter.com/Pk8MxVJLWY
— Beryl (@berylbilici) October 16, 2021
Having tickets expressed as NFTs allows for venues and artists to more easily track their movement on secondary markets, taking a portion of the resale profits by programming fees into the NFTs themselves.
The company believes that tracking tickets with blockchain could reduce the impact of ‘scalping’ on the music industry, where third-party sellers buy tickets in bulk to resell at marked-up rates.
Purchasers of NFT-based tickets on YellowHeart’s app essentially become token holders for the acts they see, being granted access to exclusive content and perks similar to that of a social token, without any additional cost to the original tickets.
Read more: Miami Art Festival Sells VIP Tickets as NFTs
YellowHeart mentioned “discounts at selected stores or restaurants before or after a show, access to private events, and exclusive meet & greets” and potential rewards for holders of NFTs within the app.
A representative of YellowHeart told CoinDesk that while the company is currently focused on ticketing in the music industry, they see the utility of their technology extending into other arenas, such as sports, in the future.
“Artists, teams and venues that don’t adapt will get left behind,” said Josh Katz, CEO of YellowHeart. “Providing fans with a technology that grants exclusive access to concert tickets and event-specific content is a real win for us, combining this with our focus on artist community tokens, exclusive album-connected NFT content, and the possibilities for creativity from here are endless.”
YellowHeart raised a $2.9 million seed round in 2018 backed by the investment fund of pop duo The Chainsmokers.