Meta is developing plans to permit users to create and market non-fungible tokens while Facebook’s parent company tries to join the throng of businesses trying to capitalize on the digital collectible trend. Teams from Facebook as well as Instagram are working on an option that allows users to showcase their NFTs on social media pages and are also developing a prototype to aid users in the creation of unique tokens, according to numerous people with knowledge of the subject.
Two of the individuals mentioned that Meta is also considering creating a marketplace for customers to purchase and sell NFTs. It is in essence, a digital representation of artwork or imagery that cannot be duplicated. The entire process is in the early stages and may change in the future.
However, the discussions are Meta’s first attempts to profit from the hype-driven market of NFTs which is a phenomenon that grew in the in the last year, transforming into an industry worth $40 billion. Some critics have portrayed the market as a speculation bubble that is plagued by scams and manipulation of markets.
The move follows Meta Chief Executive Mark Zuckerberg last year said that NFTs might someday be used to create a market for digital goods within the future metaverse which is an avatar-filled virtual world which the company plans to invest 10 billion dollars annually to build over the next decade.
The dominant NFT marketplace OpenSea is a major marketplace that accepts the 2.5 percent portion of every sale the company has raised $300m with a valuation of $13 billion only six months after having raised $100m at the $1.5bn valuation. A major US crypto exchange Coinbase is planning to launch an own cryptocurrency marketplace. Meta competitor Twitter is trying out NFT showcase capabilities, and Reddit has unveiled their own set of NFT avatars.
The company, which in recent years, has been hit by scandals involving privacy and moderation. It has seen its popularity plummet for its social media products, such as Facebook and Instagram as a result of a downward trend which could affect its $85bn annual advertising-based model of business.
Meta’s plans also allow artists in monetizing their digital artwork at the same moment when money is flowing in specifically into the sale of exclusive collections of NFTs like CryptoPunks as well as Bored Ape Yacht Club. The buyers of these exclusive collections often upload their work as profiles on Twitter to aid in showing their authority on the internet.
Instagram director Adam Mosseri in December said that it had been “actively exploring NFTs”, without revealing specifics. However, Instagram is currently testing internally its NFT showcase feature, as per two people who are aware of the rapidly-developing plans.
The Instagram NFTs initiative was originally initiated in 2013 by Kristin George the Instagram director of creators and product, as well as David Marcus, the former director of Facebook’s payments and crypto division, which departed Facebook in the month of December a different person told. Marcus was succeeded with Stephane Kasriel, former chief executive of the freelancing marketplace Upwork.