Instagram backtracks on NFTs
In November 2022 Instagram announces the arrival of NFTs on the platform, but only 4 months later it backtracks. Why?
It was November 2, 2022 when a tweet from Meta announced the arrival of NFTs on Instagram only for US creators, guaranteeing zero gas fees for minting and the involvement of big names such as Refik Anadol and Olive Allen.
Just four months after the announcement, Instagram backtracked on NFTs via a Twitter thread by Stephane Kasriel – Leading Commerce & FinTech in Meta.
Some product news: across the company, we’re looking closely at what we prioritize to increase our focus. We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses. 🧵[1/5]
— Stephane Kasriel (@skasriel) March 13, 2023
THE REASONS
In the tweet dated March 14, 2023, it is Kasriel who explains the reasons that led the company to disable all functions related to Non Fungible Tokens on the platform.
In particular, the possibility of creating and then minting their works in NFT via Facebook and Instagram, then giving creators the possibility to sell NFT to their community.
Among the Blockchain networks that had been announced were Polygon and Solana, with the use of the Phantom wallet.
“We’re looking closely at what we prioritize to increase our focus. We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses” – announces Stephen Kasriel, then underlining how the company has the absolute priority of continuing to look for new ways to implement revenue economics of the creators.
But not through NFTs at this point.
No other reason has been provided, beyond this tweet, leaving a bad taste in the mouth of many who already work in Web3 and are active with their works on the major NFT sales platforms.
THE REACTIONS OF THE NFT COMMUNITY
Surprise, anger and disappointment: these are the feelings that characterized the NFT Community following the announcement.
But considering Meta’s recent losses, such as the one linked to Reality Lab – a division that works on the creation of AR and VR products – with a collapse of 13 billion dollars in 2022 and Meta’s dismissal of over 11,000 employees, they are not auspicious.
Instagram and Meta have not clarified in detail why they are backtracking on NFTs – and it is not clear whether financial losses are a relevant factor – what is certain is that a change of course is leading in other directions, but not towards road of Web3 and decentralization.
