Meta has decided to cut support for digital collectibles or (non-fungible tokens) NFTs on its platforms, less than a year after they were introduced, and this decision comes amid the deterioration of the cryptocurrency market.
“We’re winding down digital holdings right now to focus on other ways to support creators, individuals, and businesses,” Stefan Kasrel, head of financial technology at the social media company, wrote on Twitter on Monday.
Last year, the company launched support for content creators to share NFTs on Instagram and Facebook, in order to keep pace with the emergence of digital assets at the time, as sales of some non-fungible tokens, such as monkey animations, amounted to billions of dollars.
But bitcoin and other tokens took a hit in late 2022 following the sudden bankruptcy of the cryptocurrency exchange (FTX).
The crisis has recently worsened following the collapse of three US banks last week, especially two of which are focused on cryptocurrencies.
“We will continue to invest in financial technology tools that individuals and companies will need in the future,” Cassrill said. We simplify payments with Meta Pay, making the process of completing a sale and payment easier.”
A Meta spokesperson said that the company is shifting its investments away from NFTs towards products, such as: (Meta Pay), in addition to features that enable content creators to earn money directly on Meta platforms, such as feature Gratuity called (gifts). The company also said it was testing ways for content creators to earn money with ads within short videos (Reels).
Meta is cutting costs throughout the company as she strives to make her stuttering Metaverse dreams a reality. Reality Labs, the division responsible for Mita’s augmented and virtual reality products, lost more than $13.7 billion last year.
Last November, Mita laid off 11,000 employees, or about 13 percent of its global workforce, marking the largest layoffs in the company’s history. As the Metaverse business floundered, the hype surrounding NFTs largely died down.
At the time, Meta’s interest in NFTs seemed like it could intersect with its plans for virtual reality in Metaverse, with CEO Mark Zuckerberg saying he hoped users could one day turn virtual clothes into NFTs.