Instagram will allow NFT tokens to be sold on its platform. Which cryptocurrencies will benefit from this?
Last autumn, Facebook changed its name to Meta, confirming a new vector of development towards meta-universes. Since then, the head of the social platform, Mark Zuckerberg, has lost a record $100 billion from his peak fortune, and the virtual universe giant has failed to generate excitement even among its employees. Be that as it may, Meta doesn’t want to give up on its plans, and now its Instagram site will have a new blockchain- and NFT-related feature. We tell you more about the situation.
As a reminder, Instagram has previously interacted with unique non-interchangeable tokens. In particular, at the end of September 2022, Meta representatives allowed US users of Facebook and Instagram to connect their own cryptocurrencies and at the same time share NFT collections in stock.
The company doesn’t plan to stop there: it will allow users to mine and trade NFTs next. And while some blockchains will benefit from this, there could be some problems here as well.
Where to buy NFT tokens
As Meta reported yesterday, the company is working on introducing features for mining – that is, initial creation – of NFTs and selling them. This will give Instagram a comprehensive tool for token creators to create and sell tokens, all on a single platform.
Integrating NFT tokens on the Instagram platform
Meta’s head of commerce and financial technology Stefan Kasriel commented on the event. Here’s his rejoinder, cited by Decrypt.
A small group of creators will soon be able to create digital collectibles (NFTs) and sell them directly on Instagram.
Accordingly, the company wants to attract new users to its own ecosystem and at the same time introduce them to digital assets.
At the time of the launch of the innovation, Instagram will interact exclusively with Polygon’s network for NFT mincing. By then, the social platform will also learn to show metadata about a particular token from the OpenSea marketplace, so that relevant information about the token and its collection will be displayed on Instagram itself.
Integration of unique NFT tokens on the Instagram platform
As the company has clarified, the new feature will initially be available to a relatively small group of artists and creators, and then it will become open to a wider audience. Photographer under the pseudonym DrifterShoots, visual artist Ilse Valfre and creator Amber Vittoria have already joined the ranks of the trailblazers.
Vittoria commented on what’s happening with the social platform with the following quote.
Meta and Instagram are constantly finding new and innovative ways to help artists and their art.
As we’ve noted before, Facebook and Instagram are allowing their NFT tokens to be displayed. For now, Ethereum, Polygon and Flow blockchains are suitable for this, but the integration of the Solana network and the already familiar Phantom wallet is coming soon. This means that the native SOL coin blockchain will clearly become more popular among ordinary users.
Stefan Kasriel went on to comment.
We believe that Web3 blockchain-type technologies will greatly improve the economic model for creators and allow them to create new types of digital assets for monetisation.
That said, Kasriel believes there are too many difficult procedures in the cryptocurrency world that prevent digital assets from becoming more popular.
There is a need for a much simpler user experience.
Meta officials promise to compensate NFT buyers for the cost of paying for gas on the Etherium network when purchasing tokens, although how long this will last is unknown.
NFT integration on Instagram platform
Meta will also not charge fees for creating or selling digital assets until 2024. At the same time, Stephan Kasriel recalled that purchasing anything within an app from the App Store involves paying a 30 per cent commission to Apple.
This feature of Apple's app shop could be a serious problem for creators, as such a large overpayment is able to make users give up the idea of purchasing NFT. In addition, according to App Store rules, the cost of in-app purchases must be fixed, which means speculating on tokens might not work. However, launching new collections at a certain price will clearly work.
Time will tell whether Instagram will be able to attract users’ attention. In the meantime, NFTs continue to lose popularity amid a bearish trend in the crypto industry and the wider economy. As DappRadar analysts report, trading volumes with non-interchangeable tokens sagged by 25 per cent in October 2022 compared to September. That is, user interest in this asset category has tentatively declined.
For example, the September result for the Solana network was the equivalent of $134 million, compared to $67 million in October. Similar results for Etherium were $687 million and $518 million, respectively.
We checked the current data: over the last 24 hours, the situation with trading volumes on different networks looks like this.
Trading volumes of NFT tokens on different blockchains
We believe that the integration of NFT into Instagram will have a great effect on the reputation of digital tokens and will attract hundreds of thousands of new users to the industry. Even if the platform will not be an active success among traders, such an innovation will have a positive impact on attitudes towards NFT from people outside of the blockchain industry. Still, people far from the topic may still think that all sorts of tokens are allegedly trivial scams.
Look for more interesting news in our Millionaires’ Cryptochat. There we discuss other interesting news related to the blockchain and decentralisation industry.
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