US tech giant Meta is abandoning its operations using non-fundable tokens (NFTs) amid ongoing turmoil in the crypto space. The company last year allowed creators to share digital collectibles on major social media platforms.
Meta Platform to discontinue support for non-fundable tokens
California-based technology conglomerate Meta is scaling back support for digital collectibles on its platform. The company owns social media networks Facebook and Instagram, where it hasintroducedfewer NFTs
than a year ago.
Meta offered the option to share non-fungible tokens as the popularity of this type of digital asset grows and sales reach billions of US dollars, Reuters noted in its report. However, the crypto market was hurt in late 2022 by the bankruptcy of major players like the FTX exchanges.
The move on NFT is part of the tech giant’s decision to adjust priorities and pursue efficiency, Meta’s head of commerce and financial technology, Stephan Kasriel, announced. On Monday, he tweeted.
Some product news: across the company, we’re looking closely at what we prioritize to increase our focus. We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses. 🧵[1/5]
— Stephane Kasriel (@skasriel) March 13, 2023
Kasriel affirmed that the company will continue to support NFT creators who use Instagram and Facebook in other areas, stressing that connecting with fans and creating monetization opportunities remains a priority.
“And we will continue to invest in the fintech tools that people and businesses will need in the future. We are streamlining payments w/Meta Pay, making checkout&payments easier, and investing in messaging payments across Meta,” he elaborated.
The end of NFT support comes after Meta’s Novi digital wallet was shut down last year and the assets of Meta-backed cryptocurrency project Diem were sold to Silvergate Capital, the parent company of Silvergate Bank. The latter is one of three U.S. banks, two of which specialize in crypto, whose recent collapse has also affected the state of the crypto market.
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