Unifred Unifred 14.03.2023

Meta Shuts Down NFT Business on Facebook and Instagram

The American tech giant Meta has announced that it will wind down NFT support on its popular social media platforms, Facebook and Instagram. Stephane Kasriel, Meta’s head of commerce and fintech, shared the update via a Twitter thread

Kasriel stated that the decision would enable the company to prioritize other ways to support NFT creators who showcase their work on Facebook and Instagram. He also admitted that they learned several things to bolster future products for their audience engaging with digital collectibles. In the near future, a key area under the company’s radar is monetizing Reels on both social media communities.

“Let me be clear: creating opportunities for creators and businesses to connect with their fans and monetize remains a priority, and we're going to focus on areas where we can make impact at scale, such as messaging and monetization opps for Reels,” he said. 

Some members of the NFT community on Twitter frowned at Meta’s decision to wind down its NFT business. NFT creator Dave Krugman expressed concerns about artists losing trust in the company. He added that Meta’s halt on NFT services, which would have improved a creator-to-community relationship, was a short-sighted move by the firm.

Meta’s NFT journey dates back to May 2022. Digital collectibles across Ethereum and Polygon blockchains debuted on Instagram on May 8th. At the time, the service was only open to U.S. users. 

Upon seeing wide acceptance, Meta allowed Instagram users across several countries to access the NFT realm. The integration placed Meta above many competitors, as NFT collections on Instagram sold out in seconds.

With Meta’s NFT business shut down, creators keen to participate in digital collectible trades will scout for other platforms to perform such transactions. Time will tell if the latest action by Meta will have a ripple effect on its finances and user base.