NFT Adoption: Meta Drops Tested on Social Giants

Before it has even truly begun, Meta has announced that it will end its NFT tools on Instagram and Facebook.The revelation, made by Meta commerce and fintech lead Stephane Kasriel, comes as a surprise given Facebook’s pivot to Meta in recognition of its new focus on the metaverse.

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Meta Is “Winding Down” NFTs on Instagram and Facebook

On 13 March 2023, Stephane Kasriel revealed that Meta was moving its focus from NFTs to other areas of focus where the company can make an impact.

For now, at least, Meta is “winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses,” moving focus to other monetization opportunities like Meta Pay and Reels.

Meta rolled outNFT sales for Instagram creators in November 2022 , so its quick retraction and change of direction won’t do much to inspire confidence in the social media giant’s other metaverse and Web3 plans.

What’s Next for Meta, Crypto, and the Metaverse?

Meta’s move has caught the crypto world by surprise. While the initial rollout of NFTs on Instagram and Facebook was limited, it aligned with Meta’s long-term vision of leading the world in metaverse services.

However,Business Insider analysis of Meta’s accounts revealed that the company plunged more than $36 billion into its metaverse and VR businesses, known as Reality Labs, from 2019 to 2022 but made a $30.7 billion loss for the same period.

Meta CFO David Wehner also expected that “Reality Labs operating losses in 2023 will grow significantly year-over-year.”

Given the substantial losses, it’s no wonder Meta is pulling the plug on its current approach to NFTs and the metaverse. Still, many crypto users expressed confusion as to Meta’s mixed messaging.

Whether the scramble to roll back NFT support on Instagram and Facebook is purely cost-cutting or is the start of a new approach to the metaverse for Meta remains to be seen.