Meta Platform Inc. is pulling the plug on digital collectibles or non-fungible tokens (NFTs) on its platforms (Instagram and Facebook) less than a year after introducing them on those platforms.
The decision emanates from a deep consideration of the recent misery that has befallen the crypto market.
“We are winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses,” tweeted Stephane Kasriel, Meta’s fintech head, on Monday.
From now on, Kasriel said, “We will continue investing in fintech tools that people and businesses will need for the future.” “We are streamlining payments with Meta Pay, making checkout and payout easier, and investing in messaging payments across Meta.”
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In particular, the big tech firm seeks to provide users with the necessary features to stay connected with their fans and monetize the platforms. It has decided to focus on tools such as building payment rails on its platform and via its messaging apps, along with monetizing reels, the short video clip that appears on Instagram and Facebook.
In 2022, Meta announced that it would allow users to post NFTs across Instagram and Facebook. It meant that users could connect their wallets to post digital collectibles minted on Ethereum, Polygon, and Flow. This decision resulted from some experimental processes that began in May of that same year.
Meta had launched support for creators to post NFTs on Instagram and Facebook because there was a swelling wave of interest in crypto assets and billions of dollars being made from selling them. Meta’s CEO Mark Zuckerberg’s sale of an NFT of his childhood baseball card for $105,000 played a major role in fueling this company’s resolve to launch support for NFTs on its social platforms.
Crypto’s meltdown affects Meta’s NFTs plan
In the past year, the crypto market has been scathed by a series of devastating events. The result of these tragedies is a steep drop in the value of crypto assets. In return, investments in the space declined because crypto investors have sacks of doubt quietly breathing in their bellies.
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Meta is the latest company to take the exit after crypto’s underwhelming run so far. With so much hope and excitement, Meta announced the introduction of NFTs on its social media platforms. Unfortunately, that has been short-lived owing to the doubts that have resulted from the market’s losses. For instance, after FTX’s bankruptcy in November, Bitcoin and other major tokens suffered heavy losses.
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Though a little recuperation was recorded at the start of the year, the recent failure of three U.S. banks, two of which are crypto-friendly, has plunged the market into a new level of crisis. The uncertainty about the crypto space enjoyed a surge following these events. It is no surprise Meta is taking a U-turn and focusing on other features that are not exposed to crypto’s vulnerability and high potential to suffer loss.
Reactions To Meta’s Announcement
As expected, the news does not sit well with many NFT enthusiasts, and their reactions to Meta’s announcement have been strongly condemnatory. NFT artist Dave Krugman tweeted that it was “a short-sighted move” and that Meta “quit before it even started.” He added, “The trust earned over the past year is now squandered.”
Marc Colcer, a podcaster, stated that the move “seems short-sighted for a company that is supposed to be thinking long term” and asked for transparency on the company’s decision to scrap NFT support.
In the future, with a possible boom for NFTs and crypto, will Meta be able to jump on the trend? Perhaps there are other details yet to be announced by the company as regards NFTs and crypto in the future.
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