If you recall, non-fungible tokens (NFT) were the rage that businesses attempted to capitalize on, but were met with a frosty reaction from the digital community. Last year, Meta attempted to integrate NFT support for Facebook and Instagram platforms to aid creators, but it doesn’t appear to be working out.
A recent tweet from Meta’s head of commerce and financial technologies reveals that the company is winding down its NFT support for Instagram and Facebook. The tweet asserted that the company is finding ways, other than the NFTs, to support creators, people, and businesses.
But why is Meta doing this, is it planning for something big or the company is experiencing the heat of the market? So, before diving deep into the topic, let’s first discuss when Meta announced its support for non-fungible tokens (NFTs).
Meta Introducing NFT Support for Facebook and Instagram
In May 2022, Meta made a significant move into the digital collectibles world. At that time, Mark Zuckerberg announced that non-fungible tokens, or NFTs, would be coming to the photo and video-sharing apps, Instagram & Facebook.
Later in August 2022, Meta also integrated Ethereum, Polygon, and Flow NFT cross-posting to its Facebook and Instagram platforms. This integration enables users to share NFTs across 100 countries more easily.
But now, exactly one year after originally teasing the project, Meta is abandoning NFTs. This announcement from Meta created a buzz in the digital world community regarding the operational stability of the company.
Several media outlets reported that the company might be facing a liquidity crisis that’s why the company first announced the laying off of thousands of employees and now this, the winding down of NFT support.
Why Meta is Winding Down NFT Support for its Apps?
Stephane Kasriel, Meta Commerce & Fintech lead, announced the development on Twitter. Kasriel wrote that the tech and social media behemoth is shutting down its digital collectibles effort “to focus on other ways to empower creators, people, and businesses.”
While no official justification was given, he continued to praise the partners who had joined them, saying that they had learned a lot.
Nonetheless, Kasriel emphasized that Meta will continue to prioritize monetization, particularly in the messaging and monetization prospects for Reels. As a result, the company will continue to invest in fintech solutions such as Meta Pay, which is one of its future ambitions.
However, in the last year alone, Meta’s metaverse building division Reality Labs reported its largest-ever yearly losses of $13.7 million. In addition, the company also laid off thousands of its employees in September 2022. This indicates that the company is definitely experiencing the heat of the market.
Experts believe that the current development came as the company aims to cut its expenditure to focus primarily on its upcoming metaverse initiatives. To that end, last month, Mark Zuckerberg also stated that “the metaverse will be the mobile internet’s successor.”
This assertion clearly indicates that Meta will continue to invest in emerging technologies, like metaverse and blockchain, in the times to come.
Conclusion
Meta’s decision to shut down its NFT support for Instagram and Facebook indicates that the company is reevaluating its stance on NFTs and their potential impact on social media platforms.
It is worth noting that Meta’s decision to halt its NFT support for Instagram and Facebook does not necessarily mean that it is abandoning the technology altogether. It is possible that the company is simply pausing its efforts to explore NFTs in the context of social media until it has a better understanding of the risks and opportunities involved.
Overall, the decision highlights the challenges that companies like Meta face as they navigate the rapidly evolving landscape of digital assets and blockchain technology. While NFTs offer exciting possibilities for creators and collectors alike, they also raise important questions about sustainability, regulation, and ethics that must be carefully considered by all stakeholders.
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