Updated: 12 months
• Meta, the parent company of Instagram and Facebook, announced that it will be discontinuing its integration of non-fungible tokens (NFTs) on its platforms.
• NFTs have rapidly gained popularity in recent years due to the rise of blockchain technology and a growing interest in owning unique digital assets.
• In November, Meta conducted layoffs which were the biggest reductions in company history; additional waves of layoffs are expected in the months ahead.
Meta Discontinuing Non-Fungible Token Support
Meta, the parent company of social media giants Instagram and Facebook, has announced that it will be discontinuing its integration of non-fungible tokens (NFTs) on its platforms. On Monday, the head of commerce and financial services at Meta, Stephane Kasriel, announced on Twitter that the shutdown will allow the firm to focus on other means to motivate and support creators and businesses.
Popularity Of NFTs
NFTs have rapidly gained popularity in recent years, with digital artwork, collectibles, and other items selling for millions of dollars in online auctions. The sudden surge in NFTs has been attributed to a combination of factors, including the rise of blockchain technology and a growing interest in owning unique, one-of-a-kind digital assets.
Shift In Investments
Meta’s short-lived NFT initiative did not begin testing with select Instagram producers and some Facebook users until May and June of last year, respectively. Kasriel clarified that Meta will not abandon its objective to help creators interact with their followers but rather shift its focus to other communications and revenue tools such as Reels. Meta will also continue to collaborate with NFT and Web3 content creators that utilize its suite of tools to assist them in expanding their communities.
Cost Cutting Measures
The Wall Street Journal reported on Friday that Meta intends to conduct additional waves of layoffs in the months ahead. In November 2020 Meta laid off 11000 workers or almost 13% of its global workforce marking the biggest reductions in company history . The bear market and pandemic have taken their toll on tech industry as several major companies have announced layoffs over recent months apart from meta .
It is evident from this article that many tech companies are undergoing cost cutting measures due to economic pressures brought about by COVID 19 pandemic , although metas decision to wind down nft support may seem like a major blow for crypto enthusiasts , it is important to keep an eye out for new developments which could offer more opportunities for these creative minds going forward .