META is done with NFT on Instagram

It appears that excitement in NFTs is waning. Why did Meta finish supporting NFTs in its products? We’ll explain this in the article.

Context

Meta is discontinuing the NFT project less than a year after its debut. Let us go through how this storyline came to be:

First, Meta initiated a trial test to incorporate NFT into Instagram in early May 2022. The trial was expanded on Facebook in June. Individuals in the United States were the only ones who could enjoy the service.

Then, NFT support on Instagram was expanded to users from over 100 countries in early August. In November 2022, Meta announced an upgrade that allowed creators to connect with NFTs on Instagram (which was tested with a select set of authors in the US).

How did it work?

The NFT assistance was provided via Facebook and Instagram, where users could post their tokens, quickly becoming popular. Indeed, anyone could make a photo, a gif, or even a song and sell it at a crypto sale.

But, interest in the breakthrough swiftly waned; with the FTX scandal in 2022, an NFT-related product started falling apart.

Stefan Casriel, Meta’s Head of Commercial and Financial Technologies, announced on Twitter on March 13 2023 that the corporation was discontinuing its work with NFTs on Instagram and Facebook. It was decided to focus on alternative methods to help creators, individuals, and companies.

Why may this case interest you?

First, it shows the volatility of the NFT market, as even a major player like META can change its mind about embracing technology. Second, this case highlights the challenges that large tech companies face in navigating the regulatory and legal landscape of emerging technologies like NFTs. Finally, it raises questions about the future of NFTs and their place in the mainstream, as their adoption by major platforms like Facebook could have potentially opened up new opportunities for artists and creators to monetize their work. Overall, META’s decision to pull back from NFTs signals that the market is still in flux and that the technology and its applications are still being sorted out.

More about META

To actualize its ambition of a metaverse, Meta is slashing expenses across the board. Previously, Meta Reality Laboratories, which develops AR and VR products, lost $13.7 billion last year. Meta cut off almost 13% of its personnel (11,000 people) in November, the greatest drop in the company’s 18-year history. The corporation is anticipated to announce another round of layoffs soon.

Nonetheless, Meta is actively advancing its metaverse initiative, specifically Horizon Worlds. Its virtual environment is causing a buzz and raising some concerns lately. It remains to be seen if NFTs could find a more fitting purpose in Horizon Worlds than on Instagram and Facebook.

However, this is a case to keep an eye on since Meta has made it clear that it intends to monitor the cryptocurrency market over the long haul and explore the industry, regardless of the outcome.