Is AUDIO Coin Still a Good Investment in Current Bear Market? | May 2022

5 min read

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At the time of writing $AUDIO, the native crypto token of Audius, the decentralized blockchain music streaming service, had slipped to a rank of #120 according to Coin Market Cap before regaining some losses to sit at #114. Originally built on Ethereum, the platform migrated onto Solana to reduce transaction fees and improve transaction speeds. Audio is now the largest non-financial cryptocurrency on the blockchain.

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What Is Audius (AUDIO)?

Audius was launched to remedy the inefficiencies of the music industry, which is plagued by opaque music rights ownership and intermediaries standing between artists and their fans.

Audius aims to align the interests of artists, fans, and node operators through its platform powered by its native AUDIO token. Artists can upload music, which is then stored and distributed by content and discovery nodes. Fans can then listen to this music for free.

Currently, Audius rewards content creators through rewards like featuring in the weekly trending lists. In the future, it plans to integrate stablecoins for artists to offer paid content, as well as artist tokens that give fans the ability to access exclusive content, potentially cooperating with platforms like Rally.

Audius chose to migrate to Solana because of the growing demand. The team indicated Solana was chosen for several reasons. First, it’s cheap, offering 1m transactions for $10USD. It’s also fast, with block times of 400ms and confirmations under one second. Finally, Solana is decentralized, with over 200 nodes on its mainnet. Staking and governance functionality still remain on Ethereum, with AUDIO being a ERC-20 token.

Solana is a layer one blockchain with a proof-of-stake consensus mechanism with partial Byzantine fault tolerance. It has 200 nodes operating worldwide that can, at their peak, process up to 50,000 transactions per second. Solana performs a set of coordinated optimizations to achieve such impressive performance and processes transactions in a multi-threaded way, which sets it apart from slower blockchains.

More information about Audius, including their whitepaper, can be found here. Or link to the free streaming service here.

Who Are the Founders of Audius?

Audius was founded in 2018 by Roneil Rumburg and Forrest Browning, two California-based entrepreneurs. Roneil Rumburg is a Stanford University alumnus who co-founded Kleiner Perkins, an early-stage seed fund investing in blockchain and AI companies. Forrest Browning, also a Stanford alumnus, is a Forbes “30 Under 30” recipient and a co-founder of StacksWare, an enterprise data center management platform. The team is complemented by 21 other employees and backed by a host of other illustrious names, such as deadmau5, a popular electronic music producer, Adam Goldberg, co-founder and MD of Stanford Crypto, and Bing Gordon, co-founder of EA Games.

What Makes Audius Unique?

The Audius ecosystem consists of four main participants: artists, fans, content nodes and discovery nodes.

Artists publish content on the Audius content ledger. They can do so at no cost and music is streamed at 320kbps, comparable to standards of Spotify and Google Play Music. Because of Audius’ decentralized nature, there is no copyright protection, although the protocol is working on an arbitration system that will be overseen by the community. Artists can use Audius to experiment or share bonus tracks, and the platform plans to include artist tokens to facilitate monetization, subject to artists staking AUDIO. Artists can also participate in reward schemes that see tokens airdropped to the most popular artists.

Fans can listen to tracks for free and may in the future be able to stake AUDIO to participate in artists’ growth on the platform. They can also showcase their verified NFTs through the platform and earn different badges.

Content nodes maintain the availability of content on AudSP, the platform-native extension to IPFS. An artist’s client elects a set of these nodes to do so automatically on the artist’s behalf, while fan clients fetch the content, submit proof, and request keys to content nodes. Artists could also choose to run their own content nodes and maintain greater control over their content distribution. The content ledger maintains a record and a single source of truth for all actions on the protocol.

Discovery nodes index metadata to make it searchable by users. In other words, they enable users to find new content and act as its registry on the platform.

Bears and Bulls

Last month the token reached a position of #95

So, is AUDIO a slow rugpull as some are suggesting on the Coin Market Cap website or is it a genuine token with long term potential?

As we have published in the last few months on this site, we have seen reputable commentators listing AUDIO in their top 10, top 8 or even top 5 coins to invest in.

But the recent crash of LUNA as a stablecoin tied to the US Dollar has spooked the market with lots of coins losing value. This has also had an impact on the price of Audius.

The Fear and Greed Index has been sitting in Fear or Extreme Fear for over a month now making investors nervous.

Audius price is down by 50 per cent in May, continuing a pattern of the price drop that has seen the crypto lose 73 per cent of its value since the year started and looks poised to continue the long-term bearish trend.

Since its launch, the project has continued to grow, both in size and the number of users. Recent data shows that the project has six million monthly listeners. This represents less than 2 per cent of the 445 million global monthly music streaming subscribers that its competitors enjoy. However, Audius is still relatively new and continue to gain traction within the music industry. The platform also has huge artists endorsements, including NAS, The Chainsmokers, Jason Derulo and Katy Perry.

As well as their major partnership announcement with TikTok, Audius has been slowly working behind the scenes to provide music tracks or radio stations in various gaming and non-gaming metaverses, including Ethereum Towers.

Audius Price Prediction

On May 11, Audius traded at a price low of 0.22. This is the lowest the prices had gone since February 4, 2021. However, the prices quickly started an upward move that saw the prices increase by 87 per cent.

Despite the recent trading session price drop of 3 per cent, the latest 87 per cent recovery shows the cryptocurrency has been in a bullish trend reversal for weeks. The past few days, however, has seen the markets move sideways.

Kelvin Maina, crypto and forex technical analyst with, expects the current downtrend to end soon. “I also expect the prices to trade above $0.5 in the coming sessions. There is a high likelihood we will be seeing Audius trading above $0.8 price level in the next few trading sessions.” Maina said recently in an article on their website.

Can Audius beat the ATH from March last year?

Audius peaked in March 2021 with an all-time high (ATH) of $4.99 (USD) then dropped in June and hit another high in September 2021 following the announcement that they were partnering with social media giant TikTok.

The underlying fundamentals of the business case would suggest that it can beat the ATH. However, much will depend on the company expanding the market penetration to become a real competitor to Spotify or Soundcloud as the company claims that they are.

Some of that will revolve around the payment of musicians and artists. If Audius can truly compensate them in a fair and equitable way, then musicians will join the platform in their thousands. More artists equals more fans and more fans equals more income.

Check out our recent post Audius Beating Big Tech Giants with Better Compensation for Musicians and Artists

Secondly, Audius will also need to resolve the issue of copyright which is plaguing the platform. Because of the decentralized nature of the platform, it becomes harder to remove tracks that breach copyright. The content node operators will need to develop a consensus to remove content that they believe is a contravention raised by rights holders.

In Conclusion

Despite recent price drops, the Audius platform price is likely to recover due to the underlying business model of the platform. In addition, the millions of people who make up its userbase will also likely contribute to the recovery of the platform. As new partnerships are established with Web3 developers who create metaverses and mint NFTs, the business case becomes stronger and more resilient to price movements.

So, in such a tough bear market it may take some time to recover the recent losses. In our view the price will rise, albeit slowly and with many more rises and falls in the price, over the next 6, 12 and 24 months. Patience is required – hold for the long term.

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Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is based on the opinions of a third parties, and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with projects that are high-risk and, as yet, unproven. Readers should do their own research and consult a professional financial advisor before making any investment decisions.

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