Meta Platform Inc. is removing digital collectibles and non-fungible tokens (NFTs) from its platforms (Instagram and Facebook) less than a year after launching them.
The decision is the result of a careful study of the recent calamity that has befallen the cryptocurrency market.
“We are winding down digital collectibles (NFTs) for the time being to focus on other methods to assist creators, consumers, and businesses,” Meta’s fintech chief Stephane Kasriel tweeted.
Kasriel stated, “We will continue investing in fintech solutions that individuals and businesses will need.” “Meta Pay streamlines payments, make checkout and payout easier, and invests in messaging payments across Meta.”
The major tech company specifically aims to give consumers the tools they need to remain in touch with their followers and make money off the platforms. It has made the decision to concentrate on things like developing payment rails through its chat apps and platform, as well as monetizing reels, the brief video clip that displays on Facebook and Instagram.
Read also: Binance announces AI-powered NFT generator, Bicasso
Meta allowed Instagram and Facebook NFT posting in 2022. Users could add Ethereum, Polygon, and Flow digital collectibles to their wallets. This choice was made as a result of certain experimental procedures that got started in May of the same year.
Meta allowed producers to post NFTs on Instagram and Facebook owing to rising interest in crypto assets and the billions of dollars made from selling them. Mark Zuckerberg, Meta’s CEO, sold an NFT of his childhood baseball card for $105,000, prompting the company to support NFTs on its social networks.
Crypto’s meltdown affects Meta’s NFTs plan
The crypto market has suffered a succession of disasters in the past year. These events have caused crypto asset values to plummet. Due to their doubts, crypto investors invested less.
Meta is the latest crypto business to leave. Meta revealed NFTs on social media with great anticipation. Unfortunately, market losses have raised questions. Bitcoin and other major tokens fell after FTX’s collapse in November.
The market has fallen into a fresh crisis after three U.S. banks, two of which are crypto-friendly, failed. These events increased cryptographic space uncertainty. Meta’s U-turn and concentration on features not subject to crypto’s vulnerability and significant risk of loss are not surprising.
Meta Announcement Feedback
Meta’s announcement has been fiercely criticized by NFT proponents, as expected. NFT artist Dave Krugman called it “a short-sighted move” and said Meta “quit before it even started.” He said, “The trust built over the past year is now squandered.”
Podcaster Marc Colcer called the move “short-sighted for a firm that is meant to be thinking long-term” and requested openness on the company’s NFT support decision.
Meta may be able to capitalize on a crypto and NFT boom. NFTs and crypto may be covered in future company announcements.