Cryptocurrency is ready for its close-up
As digital coins become more accepted, film producers are turning to crypto as a way of raising funds for their films.
Laura Adams, a personal finance and cryptocurrency expert with Finder, said cryptocurrency is an innovative way to finance a film.
A Piece of the Profits
"You need to promote your film, ask for payments in your chosen crypto, and give participants access to your public wallet address," Adams said.
Another option for filmmakers is issuing non-fungible token (NFT) assets, she noted.
"For instance, your fans could purchase a fractional portion of your intellectual property," she said. "You might even promise token-holders a piece of profit you make on the film."
Earlier this month, Goldfinch, a London-based entertainment financier announced the launch of FF3, an extension of its First Flights funding program for emerging and established indie filmmakers.
The first film project to launch on FF3 will be the horror thriller “The Dead of Winter” by writer -director Stephen Graves, which is slated to debut on the FF3 platform on January 24.
Goldfinch said in a statement the FF3 platform is intended to offer filmmakers transparency of ownership and revenues through the blockchain, access to untapped crypto funds, and the creation and resale potential of NFTs.
Limited edition NFTs can be sold on marketplaces, with a portion of sales going back to the filmmaker, Goldfinch said, thus creating a new monetization channel which didn't exist before and will grow with the film's popularity.
"Our vision is to establish a decentralized and autonomous decision-making community for patrons and creators to connect, create and distribute film content – one which supports first time filmmakers as much as established talent, and in so doing democratizes content creation,” Phil McKenzie, Goldfinch chief operating officer, said in statement.
Lights, Camera, Crypto
Tammy Da Costa, analyst at DailyFX, cited the platform Moviecoin.com, which recently launched its first DEX, or decentralized exchange on Uniswap, a decentralized finance platform.
In exchange for either fiat currency or crypto, Da Costa said investors will be allowed to invest in movies listed on moviecoin.com for a minimum investment of $10.
"Once an investor purchases a movie token, they will receive an NFT token through a blockchain and in exchange, they will receive royalties and profits linked to their initial investment," she said.
Moviecoin.com said that it will also offer NFT’s on Opensea and Rarible, considered "eBay" of digital items. The NFTs will consist of behind-the-scenes shots, props and memorabilia from the movies.
The company also said it will offer props from the financed movies attached to special NFT’s, giving investors the opportunity to own movie memorabilia in real life.
"Imagine owning Rocky Balboa's gloves and the digital NFT version of them too," Moviecoin.com said in a statement.