According to a report by the Financial Times, Meta is making plans to join the growing popular NFT craze. The social media company is planning to launch into the $40bn markets of digital collectibles powered by non-fungible tokens.
Non-fungible tokens – digital assets representing imagery or digital art that cannot be duplicated – have gained in popularity in recent times.
Meta Hopping on the Fast-Growing NFT Trend
The recent popularity of NFTs has drawn the attention of individuals and companies across various industries.
Many of these companies, especially in the crypto space, have launched their own NFT marketplaces. The most recent has been Bybit and Coinbase.
The Facebook and Instagram company is also joining this race of companies rushing to exploit the rising NFT mania. The Meta company with its multi-billion users is said to be developing features that will enable users to create and sell NFTs. Users will also have profiles that enable them to display NFTs and mint collectible tokens.
Reports also state that Meta has plans to create a marketplace dedicated to buying and selling NFTs. These attempts by the company are at a budding stage and may change. However, the reports are the company’s first attempt to join the NFT trend. Some critics have described the NFT market as a scam-plagued zone characterized by market manipulation.
The NFT space has the likes of OpenSea, a marketplace that takes a 2.5 per cent cut of NFT sales, raising $100m at a $1.5bn valuation only six months ago, and now currently raising $300m at a $13bn valuation. Reddit has launched its NFT collection, and Twitter is also reportedly testing its capabilities on showcasing NFTs.
Meta’s NFT Plans
Meta’s NFT plans are preceded by comments its chief executive, Mark Zuckerberg, made in the past year about NFTs being used in the company’s metaverse. He had said that NFTs could support the exchange of digital goods in the avatar-filled metaverse that the company is planning to build. Meta has reportedly made plans to invest $10bn yearly to achieve this.
According to the Financial Times report, the Instagram head, Adam Mosseri, recently said that it was exploring NFTs actively. No particular details were given in his comment, but more reports from people with knowledge of the company’s plans have stated that the company is working on features to showcase NFTs.
Facebook had also launched a digital currency wallet, Novi, in October. The wallet, launched as a pilot, will likely be central to Meta’s NFT plans. According to reports, the functionalities and features for Novi will power Meta’s planned NFTs.
What Artists May Gain from Meta’s NFT Plans
With Meta’s plans to launch its own NFTs on Facebook and Instagram, artists will be able to capitalize on digital arts through the sales of pricey limited digital collectibles. Exclusive expensive NFT collections are already being monetized, with popular examples being the Bored Ape Yacht Club and CryptoPunks.
The Meta company has recently been involved in privacy and moderation scandals. This has led to a decline in the popularity of Facebook and Instagram, which are Meta’s main products. These scandals have threatened the company’s annual $85bn ad-based earning potential.
The Financial Times also reports that Meta has refused to comment on the trending discussions around its plans to bring NFTs to its platforms.