Major tech firm Meta is removing its non-fungible token functionality from its social media platforms Facebook and Instagram about 10 months after they first launched.
Meta's head of business and financial technology, Stephane Kasriel, tweeted the news on March 13, saying that Meta is "winding down" its support for NFTs in order to "focus on supporting creators, individuals and businesses in other ways." Kasriel added that the company is still prioritizing ways for users to "connect with and monetize their fans" and will focus on tools such as building payment rails on its platform and through its messaging app, as well as earning money through Reels. Lee, the short video is featured on Facebook and Instagram.
In particular, Kasriel cited the focus of the company’s payments platform, Meta Pay, which could support cryptocurrencies in the future, according to a trademark filing in May. NFTs on these platforms have been relatively short-lived, as a test with select creators began on Instagram in May, before expanding to Facebook in June.
NFT functionality expanded again in August as Instagram made NFT tools available to more than 100 countries. Last November, the Met launched an “end-to-end toolkit” for minting and trading NFTs within Instagram.
The announcement was heavily criticized by the crypto community, with NFT artist Dave Krugman tweeting that it was “a short-sighted move” and that Meta “was out before even started.” "The trust earned over the past year is now wasted," Krugman added.
Podcaster Marc Colcer said the move “seems short-sighted for a company that is supposed to be thinking long-term,” and asked for transparency in Meta’s decision to remove NFT support. Feedback was harsher from Allen Hena, co-founder of Web3 company Earth Labs, who said Meta dropped the idea because it "realized that using a public encrypted network meant you couldn't exploit creators." Meta’s removal of its NFT tool is in line with other cost-cutting measures across the company as it focuses on its expensive metaverse ambitions.
Last year alone, Reality Labs, its metaverse-building arm, posted its largest-ever annual loss of $13.7 billion. Meta also carried out the first mass layoffs in the company's history in November, shedding 13 percent of its workforce, or about 11,000 employees.
