Meta ditches NFT projects to concentrate on sprouting priorities
The once NFT-friendly Meta, the company behind Facebook and Instagram, has announced winding down its engagement in digital collectibles to ponder on other new modes of creating revenue, according to Stephane Kasriel.
Meta’s about-turn on NFTs
Meta head of fintech and commerce, Stephane Kasriel, announced on Twitter the company’s decision to close its engagements in non-fungible tokens (NFTs) to prioritize other things. According to Kasriel, the company is looking for different techniques to prioritize to support the works of developers, users, and enterprises.
The company, which owns Facebook and Instagram, had previously proclaimed the necessity of NFTs in improving and opening the creator economy. Last November, Instagram hinted at creating an NFT marketplace supported by the Polygon network.
Kasriel said, “the billions of people require simple ways of using NFTs in Instagram to bond and maintain their preferred creators.” In the November blog post, Kasriel added that the advancement could unlock sufficient monetary opportunity.
Meta’s first engagement in NFT was in April 2022, when NFT was on the verge of gaining traction with the hype of big projects like Cryptopunks and Bored Ape Yacht Club (BAYC). The company then unveiled NFT live test on Instagram, including US-based collectors and creators a month later.
Change of tact
Since the commitment to ensure creators and enterprises have opportunities in the market is still a core priority, Meta is looking at places that can exploit them effectively. According to Kasriel, messaging and financial openings for Instagram Reels would significantly impact the welfare of its users.
However, Kasriel asserted that the company would support all the creators who use Facebook and Instagram platforms to promote their NFT works.
In addition, Kasriel indicated that the company is restructuring modes of payment through Meta Pay. “It yearns to ensure checkouts and payouts are stress-free and devoting more money to massaging costs,” said Kasriel.
Slumps in ad spending
Digital platforms have been recording slow income from ads. Meta reduced its workforce last November by 11,000 employees. The shelving of the NFT projects is another way of shifting from high spending.
Meta’s announcement comes when the enthusiasm for NFT projects dwindles due to the slumps in spending. The other attributes, such as the fall of FTX, also led to the downturn. Data from NonFungible.com is a clear testament that all is not well in the NFT market.