Why Meta is ending support for NFT on both Facebook and Instagram
Meta, the parent company of social media giants Instagram and Facebook, has announced that it will discontinue the integration of non-fungible tokens (NFTs) on its platforms.
Meta’s head of trading and financial services, Stephane Kasriel, announced on Monday on Twitter that the closure will allow the firm to focus on other means of motivating and supporting creators and businesses.
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Meta’s short-lived NFT initiative didn’t begin testing with select Instagram producers and some Facebook users until last May and June, respectively. Meta extended NFT support on Instagram for creators in 100 countries by July.
Some product news: across the company, we’re taking a hard look at our priorities to increase our focus. We are discontinuing digital collectibles (NFT) for now to focus on other ways to support creators, people and businesses. 🧵[1/5]
— Stephane Kasriel (@skasriel) March 13, 2023
NFTs have rapidly gained popularity in recent years, with digital artworks, collectibles and other items selling for millions of dollars at online auctions.
The sudden rise in NFTs has been attributed to a combination of factors, including the rise of blockchain technology and a growing interest in owning unique, one-of-a-kind digital assets.
Image: Depositphotos
Kasriel clarified that Meta will not abandon its goal of helping creators interact with their followers, but rather shift its focus to other communication and revenue tools, such as Reels.
Meta will also continue to work with NFT and Web3 content creators who use the toolkit to help them grow their communities.
Cost-saving measures
The Wall Street Journal reported on Friday that Meta intends to carry out further waves of layoffs in the months ahead. In November, Meta laid off 11,000 workers, or nearly 13% of its global workforce, marking the largest reductions in company history.
The bear market and the pandemic have taken their toll on the tech industry as several major companies have announced layoffs in recent months. In addition to the pandemic, the bear market has also resulted in a decrease in investment in technology, which has led to a decrease in hiring and an increase in layoffs.
The tech industry, once seen as a stable and lucrative career path, now faces uncertainty as companies struggle to adapt to the current economic climate.
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Meta’s augmented and virtual reality arm, Reality Labs, lost $13.7 billion in 2022. The excitement surrounding NFTs has subsided as Meta rides out the storm.
After months of hype and high prices, it seems that the frenzy surrounding NFTs is cooling down. Recent data shows that sales of NFTs have declined significantly since peaking earlier this year, indicating a possible shift in interest among buyers and collectors.
Experts attribute this decline to a number of factors, including a flooded market, waning novelty and concerns about environmental impact.
Despite this, some enthusiasts remain optimistic that NFTs will continue to play a significant role in the future of digital art and collectibles.
– Selected image from Hygger
