Meta’s announcement that it will no longer feature non-fungible tokens (NFTs) on Facebook and Instagram has come as a surprise to many, given that the company launched its NFT feature only 10 months ago in May 2022. This sudden decision was communicated by Stephane Kasriel, Meta’s head of commerce and financial technologies, via Twitter. Kasriel stated that Meta will be “winding down” digital collectibles in order to focus on other ways to support creators, people, and businesses.
Despite this change in focus, Meta will continue to invest in fintech tools that people and businesses will need for the future, including Meta Pay. Kasriel emphasized that the company is streamlining payments with Meta Pay, making checkout and payouts easier, and investing in messaging payments across the Meta platform.
The announcement has raised questions about why Meta is abandoning its NFT integration so soon after its launch. Kasriel’s comments suggest that Meta Pay is a significant priority for the company, as it has previously filed five trademarks for the service, indicating that it may integrate cryptocurrencies. However, the company’s direction with regards to blockchain and crypto is currently uncertain.
It is safe to assume that Meta Pay will be Meta’s vehicle for payment in the company’s own virtual world or metaverse. This move away from NFTs follows huge losses for Meta’s Reality Labs division last year, and part of the company’s necessary cutbacks will be the winding down of NFTs and its partnership with Flow blockchain.
Despite the end of NFTs on Facebook and Instagram, creators who use Meta’s platform need not be disheartened, as Kasriel insists that Meta will continue creating opportunities for them to monetize their work. In addition, Meta will be switching its focus to Reels for messaging and monetization.
Reels is a feature available on both Facebook and Instagram that content creators, marketers, and influencers can utilize to publish content. It allows creators to make short-form videos, which they can manipulate and edit, adding various effects for enhancement. The company’s shift towards Reels could be seen as an attempt to compete with other platforms, such as TikTok, which have been successful in capturing the attention of younger audiences.
Meta’s decision to wind down NFTs may be viewed as a failed experiment, but the company’s shift towards other features and technologies could bring new opportunities for creators, businesses, and users of the platform. As more news and updates on Meta’s direction and priorities come in, we will keep you informed.