NFT Firms Say Apple Rules Make App Store ‘Impossible’
AppleInsider is supported by its audience and can earn commissions as an Amazon Associate and Affiliate Partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.
Startup and trading NFT firms say they are ignoring the App Store because Apple’s rules, and 30% commission, make it untenable for them.
The market value of NFTs – non-fungible token firms – has been affected by the volatile value of cryptocurrency. So startups and commerce companies in the field would reportedly love to be on the App Store, and thus be able to reach a larger audience — but most won’t.
In accordance The information, Apple now insists that its usual 30% commission from in-app purchases is also paid on all trades. This has specifically stopped NFT startup Magic Eden from offering trading on its app, even after Apple reduced its commission to 15% for firms making less than $1 million annually.
When it comes to NFT trading between users, a typical marketplace only takes 2% to 3% of the transaction. Under Apple’s rules, companies would lose big on every deal.
However, it is not just the commission that is a problem. The information says that a number of NFT firms have the problem that App Store in-app purchases must be made in dollars or some other physically backed currency. It does not accept cryptocurrency.
Since the cryptocurrency exchange rate varies enormously, developers cannot simply set a dollar equivalent.
Arthur Sabintsev of the blockchain company Pocket Network told the publication that this problem “makes it very difficult to price it because you have to program all these values dynamically.”
Sabintsev said he has advised one of his clients to allow users to purchase in-app currency in the same way some games do. They buy the currency, and that transaction gives Apple 30%, then they spend it in the app on deals.
In particular, selling NFTs in apps is particularly problematic.
“It feels like the position is that Apple doesn’t really want to [App Store] users to be able to buy or sell NFTs,” said Alexei Falin, CEO of NFT startup marketplace Rarible.[It’s] almost impossible because there are fixed subscriptions or fixed prices.”
Perhaps backing up that notion is how Apple is reportedly delaying approval of NFT and crypto apps for the App Store. According to Falin, it took several months to get the Rarible app to the App Store, compared to just days for the Google Play Store.
This means that such apps are coming to the store, but they generally seem to act as storefronts for their services. Actual sales or transactions are routed to a browser page, rather than done in the app.
Apple reportedly did not specifically address the issue of NFT app delays with The information, saying instead that the 500 reviewers check 90% of apps within 24 hours. Apple also declined to comment on the other NFT criticisms, instead directing the publication to the App Store’s general rules.
