Meta Platforms has announced it will discontinue support for digital collectibles, or non-fungible tokens (NFTs), on its platforms, just months after their introduction. This decision comes amid ongoing challenges in the cryptocurrency market.
Stephane Kasriel, the fintech head at Meta, shared the news via Twitter on Monday, stating, “We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses.”
The company had initiated NFT support on Instagram and Facebook last year, during a time when the market for these digital assets saw significant growth, with transaction volumes for items like cartoon apes and video clips reaching billions.
However, the cryptocurrency landscape has faced difficulties since the late 2022 collapse of the FTX exchange, which caused major turbulence. This turmoil has been exacerbated by the recent failures of three U.S. banks, two of which catered to the crypto sector.
In November, Meta expanded Instagram’s capabilities by introducing features aimed at assisting content creators in monetizing their work, including tools for trading digital collectibles.
The platform previously stated that users could directly support creators by purchasing their NFTs through Instagram.
Earlier this month, Meta also revealed its plans to explore the development of a standalone decentralized social network for text updates, potentially positioning itself as a competitor to Twitter, owned by billionaire Elon Musk.
A Meta spokesperson commented, “We’re exploring a standalone decentralized social network for sharing text updates. We believe there’s an opportunity for a separate space where creators and public figures can share timely updates about their interests,” in a statement to Reuters.
© Thomson Reuters 2023
