US tech giant Meta is giving up on non-fungible token (NFT) trading amid ongoing turbulence in the crypto space. The company allowed creators to share digital collectibles on its main social media platforms last year.
Meta-platforms cut support for non-fungible tokens
California-based tech conglomerate Meta is reducing support for digital collectibles on its platforms. The company owns the social networks Facebook and Instagram to which it introduced NFTs less than a year ago.
Meta provided the non-fungible token sharing option amid the growing popularity of this type of digital asset, with sales reaching billions of US dollars, Reuters noted in a report. However, the crypto markets were affected by the bankruptcy of major players such as the FTX exchange, at the end of 2022.
The move regarding NFTs, part of the tech giant’s decision to adjust its priorities and seek efficiencies, was announced by Stephane Kasriel, Meta’s head of Trading and Financial Technologies. On Monday he tweeted:
Some product news: Across the company, we’re taking a hard look at what we prioritize to increase our focus. We’re phasing out NFTs for now to focus on other ways to support creators, individuals, and businesses. 🧵(1/5)
—Stephane Kasriel (@skasriel) March 13, 2023
Kasriel assured that the firm will continue to support NFT creators who use Instagram and Facebook in other areas and stressed that creating opportunities for them to connect with fans and monetize remains a priority.
“And we will continue to invest in fintech tools that people and businesses will need in the future. We are simplifying payments with Meta Pay, making checkout and payments easier, and investing in courier payments in Meta,” he explained.
The end of NFT support comes after last year, when Meta’s Novi digital wallet was shut down, 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 US banks, two of them focused on cryptocurrencies, whose recent collapse also affected the situation in the cryptocurrency market.
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