Meta removes NFT support on its platforms due to unstable crypto market

Meta is cutting down NFT (non-fungible tokens) support on its platforms less than a year after putting it out as the crypto market continues to plummet.

Last year, when the speculative crypto asset had skyrocketed in popularity and sales of cartoon gorillas to video clips had reached billions of dollars, the business rolled out tools for creators to distribute NFTs on Instagram and Facebook. However, the sudden bankruptcy of major exchange FTX in late 2022 caused a decline in the value of Bitcoin and other tokens.

“We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses,” Meta’s fintech head, Stephane Kasriel, tweeted.

The decline continued as three major US banks, Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank, collapsed earlier this month. Two of these banks are crypto-focused and likely to create liquidity issues.

“We’ll continue investing in fintech tools that people and businesses will need for the future. We’re streamlining payments w/ Meta Pay, making checkout and payouts easier, and investing in messaging payments across Meta,” Kasriel said.

A mechanism to trade digital collectibles was one of many new features that Meta added to Instagram last year to help content creators monetize their presence on the social media site.

It’s hardly the only once-ambitious project that’s failed in the past 12 months. Last year, Meta also shut down Novi, their cryptocurrency wallet, which had reportedly planned to handle NFT in the past. Also, the business has canceled projects related to Reality Labs, its metaverse branch, and its bonus scheme for Reels creators.

After cutting down NFT support, Meta focused on Reels creators for revenue and support

According to Kasriel, Meta will shift its attention to other products like Reels for communications and revenue while supporting creators in their efforts to interact with their followers. Also, Meta will keep collaborating with Web3 and NFT content producers that use its toolkit to expand their communities.

“A big thank you to the partners who joined us on this journey and are doing great work in a dynamic space. We learned a ton that we’ll be able to apply to products we’re continuing to build to support creators, people, and businesses on our apps, both today and in the metaverse,” Kasriel said.

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