Facebook and Instagram pull the plug on NFTs next week – Cryptopolitan
Facebook and Instagram, the social media giants owned by Meta, have announced that they will pull the plug on digital collectibles or non-fungible tokens (NFTs) from April 11, 2023.
In a statement, Instagram revealed that it will begin deleting digital collection data in its system, including wallet addresses, and will no longer be connected or associated with third-party digital wallets.
This announcement has sent shockwaves through the digital art world and has left artists and investors scrambling to find alternatives to display and trade NFTs.
Facebook and Instagram’s NFT integration is discontinued
Meta, Facebook’s parent company, has “discontinued” work on NFTs on Facebook and Instagram, according to Stephane Kasriel, head of Meta commerce and fintech.
In a recent Twitter thread, Kasriel revealed that Meta will end its tests of minting and selling NFTs on Instagram, as well as the ability to share NFTs on Instagram and Facebook in the coming weeks.
Instead, the company will focus on areas where it can make an impact at scale, such as messaging and monetization on wheels and on improving Meta Pay.
Instagram first began testing its NFT features with select creators in May 2022. However, most users only got their first real taste of the platform’s NFT integrations in August of that year when the company enabled the features for users in 100 countries worldwide.
Despite this, the most important NFT features had yet to be added, namely the ability for users to create, buy and sell NFTs with each other.
It wasn’t until November 2022 that Instagram allowed a handful of creators to start selling NFTs on the platform. The artists who were selected were hopeful, believing that the move would lead to a new and fairer creative economy.
However, the announcement that Facebook and Instagram are ending NFTs has left many creators stunned, especially since the features only recently launched.
As part of the phase-out, Facebook and Instagram will no longer maintain a connection or link users’ accounts to third-party digital wallets.
Users will no longer be able to create new digital collectible posts on Instagram, and all collectibles shared will remain as posts without any shimmer effect or blockchain information. Collectibles that are only visible in the digital collectibles tab in users’ profiles are moved to their archives.
Users will also no longer be able to view their digital collectibles in the associated tab or manage third-party digital wallet connection settings.
Furthermore, users will no longer be able to access or download information related to collectibles. Facebook and Instagram will begin deleting digital collectable data in their systems, including users’ wallet addresses.
Possible reasons behind the decision
The decision to stop supporting NFTs comes as Meta’s CEO, Mark Zuckerberg, aims to make 2023 the “year of efficiency” and streamline the company’s focus.
Meta has also faced setbacks with its Meta-backed cryptocurrency Diem and its Novi digital wallet, both of which were shut down in 2022. Despite Meta’s withdrawal from NFTs, other companies such as Reddit, Starbucks and Sesame Street have announced new NFT cooperation.
Representatives from Meta have not shared more information about the reasoning behind the decision beyond what Kasriel offered in his tweets.
The company also hasn’t released any information on exactly when the features will be disabled. Meanwhile, Facebook and Instagram are looking to prioritize other areas that support creators, people and businesses.
