Why Meta’s Latest Move Shows NFTs Are Here To Stay

On Sep 30, 2022

Meta, the company behind Facebook and Instagram, announces major move involving NFTs.

Covered:

Meta’s Announcement
Future Of NFTs

Meta’s Announcement

Meta announced today that Instagram and Facebook — both owned by Meta — have officially rolled out NFT integration for its United States-based users. Users of both social networking applications will now be able to connect select NFT wallets.

“Today we’re announcing everyone on Facebook and Instagram in the U.S. can now connect their wallets and share their digital collectibles,” Meta said in a blog post. “Additionally, everyone in the 100 countries where digital collectibles are available on Instagram can now access the feature.”

Users now will be able to share their NFTs to their feeds the same way they would a photo or a news article. In addition, they may cross-post between Instagram and Facebook.

Users will be able to integrate the following wallets into their social media applications: MetaMask, Coinbase Wallet, Dapper, Trust Wallet, and Rainbow. Currently, the integration supports the following blockchains: Ethereum, Polygon, and Flow.

The integration comes just on the heels of Ethereum’s move to proof of stake. NFTs have been heavily criticized outside the crypto world for its environmental impact. However, the move nullifies the criticism and made it easier for major companies like Meta to roll out their integrations.

Nevertheless, Meta got ahead of it by stating in their blog, “In addition, we understand that blockchain technology and NFTs raise important questions on sustainability. Meta will help reduce the emissions impact that might be associated with the display of digital collectibles on Instagram by purchasing renewable energy.”

Recommended: Instagram Is “Actively Exploring NFTs” For Its Billions Of Monthly Users

Future Of NFTs

NFTs have taken a massive hit during 2022. Many of the flagship projects like Bored Ape Yacht Club and CryptoPunks have struggled mightily to maintain the massive floors they maintained throughout 2021.

Nevertheless, Bored Ape Yacht Club still enjoys a floor of 82 ETH ($110,000 USD) as of press time. Considering the continued success of the flagship NFT project, it’s no surprise a company like Meta is finding its way into space.

What’s curious though is how it financially benefits Meta. Meta’s stock has cratered since its CEO Mark Zuckerberg went all in on the metaverse. The all-in approach has proven costly, and the company has even instituted a hiring freeze.

Curiously, Meta’s current NFT strategy will not be monetized. All posting of NFTs will incur zero costs to users or creators. What exactly does Meta get out of this?

Meta’s social media business is driven by ads. In order to generate ad revenue you need users. Meta is betting interest in NFTs hasn’t cratered and, in fact, is likely to grow from hereon.