Facebook and Instagram, social media giants owned by Meta, announced that they will stop the digital collection or non-fungible token (NFT) feature. In a statement, Instagram said it would begin deleting digital collection data on its systems, including wallet addresses, and would no longer be connected to or associated with third-party digital wallets.
This announcement has sent shockwaves through the digital art world and has left artists and investors scrambling for alternatives to exhibit and trade their NFTs. Meta head for commerce and fintech, Stephane Kasriel said, Meta as Facebook’s parent company has ended its work with NFTs on Facebook and Instagram.
In a recent Twitter thread, Kasriel revealed that Meta will end testing the creation and sale of NFTs on Instagram, as well as the ability to share NFTs on Instagram and Facebook in the coming weeks. “Instead, the company will focus on areas that can have a large impact, such as messaging and monetization on Reels and improving Meta Pay,” said Stephane, quoted from Cryptopolitan, Monday (10/4/2023).
Instagram first began testing the NFT feature with select creators in May 2022. However, most users only got their first experience of the platform’s NFT integration in August of the same year that the company enabled the feature for users in 100 countries around the world.
However, the core functionality of NFTs hasn’t been added, namely the ability for users to create, buy, and sell NFTs to one another. It wasn’t until November 2022 that Instagram allowed a select few users or creators to start selling NFTs on the platform. The selected artists are very hopeful and believe that this move will lead to a new and fairer creator economy.
However, the announcement that Facebook and Instagram are phasing out NFTs has left many creators stunned, especially since the features were recently launched. As part of the closure, Facebook and Instagram will no longer maintain connections or associate user accounts with third-party digital wallets.
Users will no longer be able to create new digital collection posts on Instagram, and any shared collections will remain as posts without sparkle effects or blockchain information. Collection posts that are only viewable in the user’s profile’s digital collections tab will be moved to their archive.
Users will also no longer be able to view their digital collections in associated tabs or manage their third-party digital wallet connection settings.
In addition, users will no longer be able to access or download collectible-related information. Facebook and Instagram will begin deleting digital collection data from their systems, including users’ wallet addresses.
The decision to stop supporting NFTs likely comes as Meta CEO Mark Zuckerberg aims to make 2023 a year of efficiency and streamlining the company’s focus.
Meta has also suffered setbacks with its Meta-backed cryptocurrency Diem and its Novi digital wallet, both closing in 2022. Despite Meta pulling out of NFTs, other companies such as Reddit, Starbucks, and Sesame Street have announced new NFT collaborations.
