Napster, the file-sharing trailblazer, is planning the ultimate comeback—this time on the blockchain.
The news was announced by Matt Zhang, founder of the crypto-focused investment firm, Hivemind, which recently acquired the platform.
“Dear friends, we are excited to share that we’ve taken Napster Group private, and to bring the iconic music brand to web3,” said Zhang.
“Volatile market and uncertain times often bring exciting opportunities. At Hivemind, we believe in developing thesis and building enduring value. Music x Web3 is one of the most exciting spaces we’ve come across, and we are thrilled to work with Emmy Lovell and many talents to unlock value for the entire ecosystem and revolutionize how artists and fans enjoy music.”
The acquisition was a joint effort with Alogorand, founded by Turing Award-winning cryptographer Silvio Micali.
Napster launched in 1999 as a peer-to-peer (P2P) file-sharing network. To use it, all you had to do was set up a free account, gaining access to
millions of digital music files. Widely popular, the platform had more than 80 million users registered on its network. However, the music industry found Napster and other platforms a threat to their businesses. A fair point, considering the vast majority of illegal uploads and downloads.
The company was hit with a lawsuit by the RIAA (Recording Industry Association of America) for the unauthorized distribution of copyrighted material, where they eventually an injunction from the courts. Napster was forced to shut down just two years after its launch.
In 2002, the company was then acquired by Roxio (a digital media company) for $5.3 million. The company relaunched its “Press Play” music store under the name Napster 2.0.
The company has undergone several iterations over time, but with Web3 as a launchpad, could it finally return to its former glory? Or perhaps exceed its peak success?
