Meta winds down its work with NFTs on its platforms. The decision was announced by Meta commerce and fintech lead Stephane Kasriel in a Twitter thread on Monday. The company will end its tests of minting and selling NFTs on Instagram as well as the ability to share NFTs on Instagram and Facebook in the coming weeks.
The move is part of Meta’s strategy to increase its focus on areas where it can make an impact at scale, such as messaging and monetization on Reels and improving Meta Pay. Meta spokesperson Joshua Gunter confirmed in an email to The Verge that the NFT integrations seem to be one casualty of CEO Mark Zuckerberg’s drive to make 2023 the “year of efficiency,” along with the Reels Play bonus program.
Kasriel said in his Twitter thread, “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.”
The decision to end NFT tests on Meta’s platforms follows the shutdowns of Meta-backed cryptocurrency Diem and Meta’s Novi digital wallet last year. The company is now focusing on other areas that have greater potential to benefit its users and businesses.
While Meta winds down its work with NFTs, other companies are still exploring the potential of these digital assets. Reddit is promoting its “digital collectible” avatars that are NFTs, and Starbucks recently sold out a selection of 2,000 $100 NFTs in its Odyssey customer loyalty program. Sesame Street has also announced an NFT collaboration, indicating that the market for NFTs is still alive and well.
Despite the hype surrounding NFTs in early 2021, the market for these digital assets collapsed in 2022, shedding billions in value. Nevertheless, many companies are still interested in exploring the potential of NFTs and are finding creative ways to integrate them into their businesses.
Overall, Meta’s decision to wind down its work with NFTs on Facebook and Instagram is a sign of the company’s ongoing efforts to refocus its efforts on areas where it can make the greatest impact. While NFTs may not be a priority for Meta at the moment, the market for these digital assets remains a dynamic and evolving space that is likely to see continued growth and innovation in the coming years.