Meta Platforms has been at the forefront in supporting NFTs creators since late 2021. But, in the latest news, Facebook and Instagram have abandoned the sector in a move that will deal a major blow to the growth and development of the NFTs sector.
The firm said that it is seeking “other ways to support creators, people, and businesses.”
A senior executive confirmed that Facebook and Instagram are already “winding down” support for NFTs.
Stephane Kasriel said on Twitter that the tech behemoth is abandoning NFTs as it seeks other means of interacting with creators on the platform.
Meta owns both social networks. It dived head first into digital collectibles, rolling out the functionality to 100 nations globally. But, the company’s efforts have made a minimal impact, with demand for NFTs dampened by a severe crypto bear market.
This is a major blow for the industry, which had started gaining mainstream recognition and adoption after an explosive bull run in 2021. But several big names have so far struggled to make an impact with their in-house NFT marketplaces – with Coinbase among them.Buy Crypto Now
Even OpenSea, which up until recently was the world’s largest marketplace for NFTs, has been suffering greatly amid a revolt over commission fees and various royalties. In 2022, Deutsche Bank made some lofty forecasts about how Instagram could transform the market extensively.
It stated that if only 2% of the active users adopted NFTs on Facebook and Instagram, it would result in 44 million users, ‘considerably higher’ than those who use OpenSea.
But it appears Meta is getting cold feet after taking a massive battering due to its huge investment in the metaverse.
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