Meta will expand the rollout of NFTs across its platforms, starting with creator favorite Instagram.
NFT sales are far lower now than during the NFT boom in January 2022. However, Meta’s overall stance on the metaverse, digital content and so-called Web3.0 sees the company continue with its plans to better integrate digital assets into its platforms.
The big questions are, who actually wants NFTs on the Instagram bar Meta? And does the world really need another NFT marketplace?
Instagram users can already showcase NFTs on their profiles. It’s still a relatively niche feature among Instagram’s roughly 1 billion users, but Meta has made no secret of its interest in pushing this further.
At Meta’s Creator Week event, it was revealed that Instagram users will now have the ability to buy and sell NFTs directly on the platform. To facilitate this, Meta is rolling out what it calls “an end-to-end toolbox” for creators.
Instagram’s NFT platform is built on the Polygon blockchain, but will also expand support for the Solana blockchain and the popular Phantom wallet, broadening its overall reach and appeal.
Well, something that all social media have to contend with is monetization. Sure, platforms like Instagram and Facebook make money from selling ads, but for many users, the whole reason for being on the platform is content. Helping content creators monetize their followers is an important digital nut to crack, and Meta knows all too well that keeping content creators on board and keeping their bank accounts ticking over is critical to increasing engagement.
Rolling out NFT sales on Instagram gives people a direct method to support their favorite content creators. Instagram’s new NFT features are “being tested with a small group of creators in the US first,” though we expect a quick rollout once the feature goes live.
Meta may also have noticed the success of Reddit’s NFT avatars, with collections featuring Reddit’s Snoo mascot now worth hundreds of millions of dollars across established NFT marketplaces such as OpenSea. While the initial hype surrounding NFTs has died down, many expect a second, more mature phase to follow, and movement from major social media outfits like Meta and Reddit may well be what sparks the second cycle.
Can Instagram compete with the established NFT marketplaces?
Despite Instagram’s global reach, there is no guarantee that user numbers alone will make it a success in the NFT space. Established NFT marketplaces such as OpenSea, Rarible and SuperRare have smaller but dedicated followings, and for many there are trust issues surrounding Meta and associated platforms.
However, it assumes that Meta is targeting these users. If Meta can convert even a fraction of its Instagram users to buy NFTs, it stands to become a significant player in the NFT world. As reported by Engadget, Meta has said, “It will not take a cut in NFT sales until 2024,” although the Apple App Store’s 30% cut will still apply.
Would you buy an Instagram NFT?
For many, NFTs remain an enigma: zero-use digital artworks costing thousands of dollars that you can right-click and save to make a copy of. And while Meta’s stock may have fallen, the platforms still hold significant influence when it comes to social media and the world at large. So don’t bet against Instagram’s NFT plans just yet.
