NFTs On Instagram

How are NFTs integrated by Meta?

Meta, the company behind Instagram and Facebook, first announced plans to introduce digital collectibles to showcase NFTs (non-fungible tokens) to the sites in May 2022. At that time they started to test this new feature with select creators on the platform. 

Later on, in July of the same year, the head of Meta, Mark Zuckerberg said that NFTs would be available in 100 countries in different regions. However, at the moment, only select creators from the US can use this feature.

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Previously, artists could only showcase their pieces on social media, but as it was announced on November 2, 2022, soon they will be able to use an end-to-end toolkit. This means that it will be possible to go through the whole process - from making digital art using Polygon blockchain to selling it both on Instagram and other platforms.

By introducing NFTs, Meta aims to help artists monetize their work through social media, which is why they are not going to charge any part of the sales until 2024. What is more, creators can get a commission (5-25%) for reselling their works. However, in-app purchasing of NFTs is subject to app store fees if done on iOS, and those are quite large - 30%.

This initiative seems to be the continuation of their efforts to allow popular content creators of these social networks to earn money. For example, they have introduced paid subscriptions (the service which allows followers access to exclusive posts, stories, etc. for a monthly fee) and simultaneously bring a new source of income for the company.

What are competitors up to?

Meta is not the only platform that is launching NFTs. In January 2022, Twitter introduced NFT profile pictures for those users who pay the company for a subscription called Twitter Blue. The service has some premium features like an ad-free feed, the ability to edit existing tweets, etc. Twitter Blue subscribers got the opportunity to showcase the NFTs they already own.

Elon Musk, who recently acquired the company, has announced that the platform plans to widen the NFT possibilities for all its users and let them buy, sell, and show digital artwork in tweets.

In July 2022, another platform, Reddit, went down the same path and announced its NFT avatars.

Basically, Redditors can connect their accounts to a MetaMask wallet (this is a web browser extension that works as a cryptocurrency wallet), participate in an auction in OpenSea, and purchase an NFT avatar. After that, their comments on the site will stand out.

What are the advantages of introducing NFT features by Meta?

1. Artists can access a wide audience: in 2021, there were over a billion active users on Instagram.
2. They can also take advantage of the site’s algorithms to promote their works.
3. The users can crosspost their pieces between Instagram and Facebook with no additional fees.

What are the disadvantages of introducing NFT features by Meta?

1. People have expressed concerns about sharing their sensitive data (regarding their crypto wallets, for example) with the company as there have been precedents of leaking users’ information before
2. There has been a significant decrease in the sales volume of NFTs in the third quarter of 2022, however, this sphere is notorious for fluctuation.

Conclusion

With Meta’s consistent efforts to develop in the sphere of NFTs and other big players following the example, we can clearly see that this is the direction tech giants are willing to explore in the future. With the amount of possibilities blockchain technology brings, this is probably just the beginning.