Algorand & Hivemind Acquire NapsterMay 11, 2022 3:11 pm
It was just announced that Algorand and Hivemind have now acquired Napster which is a audio sharing service that was popular back in the 2000s.
As a result, the leadership at Napster has been replaced with pro-crypto executives that will work on strategies that align with the Algorand blockchain.
Hivemind is also known as a prominent crypto investment firm that sees this as a unique opportunity that combines the music industry with Web 3 technologies.
This recent acquisition is being compared with the previous acquisition of LimeWire within the crypto industry and indicates that the music industry is no exception when it comes to experiencing disruption from crypto.
BREAKING: @HivemindCap and @Algorand today announced the acquisition of @Napster, to once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans. Music industry veteran Emmy Lovell has been named interim CEO. Stay tuned for further details. pic.twitter.com/y5NEI1oiRA
— Hivemind (@HivemindCap) May 10, 2022
“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,” Matt Zhang, Hivemind’s founder and managing partner, wrote in a LinkedIn post announcing the acquisiton.
Two weeks ago, Hivemind undertook a similar effort in backing LimeWire with the aim of bridging a once-infamous file-sharing brand with web3.
“One of our core theses is in the value in nostalgic web1 and 2 brands combined with the technological potential of web3,” Hivemind had written on LinkedIn about the Limewire funding.
The terms of the Napster acquisition are unknown, including the exact structure given the role of two acquiring firms, and Hivemind did not release further information about the deal when asked to comment. Algorand did not respond to requests for comment.
In terms of why Algorand is also specifically suited for this acquisition, the firm has stated that they specifically look for blockchains that are able to support web3 projects.
Algorand is one of the top contenders within this space and utilizes a proof of stake protocol which makes it extremely energy efficient.
Its high transaction speeds and low costs of operation make it suitable for web3 where it is expected to be a large volume of transactions which will require a lot of scalability from the system that it uses.
Algorand can also host a variety of asset tokens such as non-fungible tokens (NFTs) which may be helpful for a music streaming service like Napster.
— RC (@RheoCrypto) May 11, 2022
It’s also an open source blockchain, so anyone can view and contribute to the platform’s code. It uses an operating protocol called proof of stake, which recruits network operators from the pool of ALGO coin holders.
Algorand was built on using proof of stake, while Ethereum is still trying to transition to this operating protocol.
Ethereum still relies on the ‘old’ proof of work protocol, which uses vast amounts of energy to mine new ether and process transactions on the blockchain.
Ethereum can process new blocks of transactions every 12-14 seconds. Algorand can process transactions in about 4 seconds.
In general, it is positive for ALGO holders to continue to see Algorand making moves within multiple industries as the crypto market is still suffering from an overall bearish momentum due to recent events.
Napster acquired by Hivemind, Algorand at undisclosed pricehttps://t.co/MupWaElj42
— The Block (@TheBlock__) May 10, 2022
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