Mark Zuckerberg, CEO of Meta, announces that NFTs (non-fungible tokens) are being tested for Instagram, and that NFT functionality will also be arriving on Facebook soon. Zuckerberg had previously announced the exploration of NFTs in their metaverse and reality labs work. However, details thus far have been sparse regarding NFT integration with Instagram and Facebook.
So what do we know?
Zuckerberg highlighted the cultural significance of NFTs as a form of expression and identity, ‘We’re starting to test digital collectibles on Instagram… it’s about expression, it’s saying something about yourself’. He went on to announce that 3D NFTs will be compatible with Instagram stories through their Spark AR software. Zuckerberg details how this would allow for digital art to be brought into 3D spaces and subsequently projected into real life spaces too. To wrap your head around augmented reality, one might consider the popular game Pokémon Go, for an analogy where the underlying concept isn’t dissimilar.
How significant is this?
This is undoubtedly another step in legitimizing the mass adoption of NFTs as an asset class, with Facebook and Instagram exposing potentially billions of users to blockchain technology via NFTs.
Yet it’s also worth noting that given Meta’s previous announcements, this isn’t exactly a surprise. Many big names such as McDonalds, Lamborghini and Adidas are already implementing their own NFT and metaverse plans as well.
The wider context:
The real question remains whether Meta will end up stealing the lion’s share of NFT consumption on their platforms. Meta’s platforms will likely be more user-friendly for the average person, compared with the technical know-how which is often required to utilize blockchain technology platforms.
Conversely, concerns remain over how NFTs and the metaverse will unfold under the umbrella of Meta. Privacy and data issues are still at the forefront of many people’s minds. Furthermore, Meta may underperform against some Web3 innovations, when you consider that Meta has proposed a 47.5% cut on the sale of any creators’ NFTs in their metaverse. This is not to be confused with displaying NFT PFPs (profile pictures/proof of picture) on Facebook and Instagram. Adam Mosseri, Head of Instagram, has stated that it will be free to display your NFTs. It’s worth noting that twitter opted for a $3 charge to display your NFT on their platform.
Many details on the integration of NFTs with Facebook and Instagram are still unknown, with utility comparisons beyond PFPs being difficult to assess at the time of writing. Though it’s fair to say that it’s up for debate on how the metaverse will transpire, when considering Web2 vs Web3 approaches. The market share of NFTs will likely be divided between numerous competing metaverse worlds, within Web2 and Web3 alike.
Will the innovation of Meta be enough for users to overlook the disregard for the decentralized values, which exist in the NFT world today? The reality will ultimately be decided by users.
