Instagram plans to launch NFT minting and trading
Instagram is set to launch nonfungible token-related tools that allow NFT minting and trading.
Instagram parent company Meta announced at its Creator Week 2022 event on November 2 that the platform would allow its creators to create "digital collectables" and sell them "both on and off Instagram."
Instagram to launch NFT minting and trading toolkit
Meta claims that creators will have an "end-to-end toolkit" for creating, displaying, and selling NFTs on the platform and that the Polygon blockchain has been chosen as an initial partner for this functionality.
According to the company statement, Meta will first roll out the new NFT features to a chosen group of artists and content creators before making them available to a wider audience. Those selected for early access to the new Instagram NFT features are photographer DrifterShoots, visual artist Ilse Valfré, and artist Amber Vittoria.
In addition to Ethereum, Flow (FLOW), and Polygon, Meta has revealed its support for the Solana blockchain and its widely known wallet, Phantom.
Support for video NFTs will be added, allowing retrieval of NFT metadata from OpenSea to display collection names and descriptions on Instagram.
Stephane Kasriel, Meta's head of commerce and financial technology, stated that Meta will not charge fees to create or trade digital assets until 2024 and that blockchain gas fees for purchasers will be covered by Meta "at launch." However, he did not specify how long the launch timeline would be.
Kasriel also stated that digital asset trading would still be subject to app store charges referring to Apple's 30% commission on NFT sales, which has been heavily criticised for being higher than the average 2.5% commission imposed by marketplaces such as OpenSea.
Buyers will not be able to buy Instagram NFTs using crypto through the app because both Google and Apple only allow in-app purchases using fiat currencies. Both prohibit buttons, external links, or other actions that enable users to avoid commissions.
Meta has not disclosed how much of a commission it intends to take from NFT sales, nor has it revealed the details of its creator royalty's system. It is also unclear whether it will follow recent NFT marketplace pushes to move to opt-in royalty models.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.