Meta Shuts Down NFTs on Facebook and Instagram

2023-03-30, 04:11

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/blog/1679447253155655279redian.jpeg)
## [TL; DR]
Meta has announced that it is going to shut down the integration of NFTs on Facebook and Instagram.

It aims to shift investments from NFTs to projects that create better value for its community of users.

The need for Meta to discontinue with its Facebook NFT and Instagram NFT projects coincides with a decrease in the demand for non-fungible tokens.

Still, Meta promises to support individuals and groups that deal with NFTs which are part of its community.

## Introduction 
The current NFT phase will determine whether or not NFTs are a fad or are here to stay and make significant contributions to the blockchain economy.  Right now, both positive and negative developments are taking place in the sector. For instance, many tech startups are launching new NFT projects. Nonetheless, there are other existing NFT projects that are winding down their operations to exit the industry. One such project is Meta which recently announced that it is discontinuing NFTs on Facebook and Instagram.

Read also: [Instagram To Welcome NFT Features](https://www.gate.io/blog_detail/854/instagram-to-welcome-nft-features "Instagram To Welcome NFT Features")

## Meta aims to shift investments from NFTs
The key reason why Meta [is winding down its NFT](https://twitter.com/skasriel/status/1635386565487898624 "is winding down its NFT") project is to reallocate its resources to other strategic projects such as “Meta Pay.”

![](https://gimg2.gateimg.com/image/article/1680149357411680149091_.pic.jpg)
Meta Facebook and Instagram - Gazetengr

Posting on Twitter, Stephane Kasriel, Meta’s head of commerce and financial services said, “We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses... Proud of the relationships we built. And look forward to supporting the many NFT creators who continue using Instagram and Facebook to amplify their work.”

Kasriel added, "We'll continue investing in fintech tools that people and businesses will need for the future. We're streamlining payments with Meta Pay, making checkout and payouts easier, and investing in messaging payments across Meta.”

The stated reason for discontinuing NFTs is for the company to focus on other key corporate areas such as supporting creators and its related business units. However, some analysts believe that there are developments that could have influenced Meta to make that decision.

Significantly, Meta has already stopped [minting and testing NFTs](https://www.gate.io/uk/blog_detail/510?lang=en "minting and testing NFTs") and the related products. Furthermore, it will not integrate  NFT features on Facebook or Instagram that will enable the community members to buy NFTs [or sell NFTs](https://www.gate.io/help/nft/nfts/22845/how-to-sell-nft-works-and-set-the-selling-method-on-app "or sell NFTs").

Read also: [NFT timeline: A Brief History of NFTs and Where we are now](https://www.gate.io/blog_detail/2286 "NFT timeline: A Brief History of NFTs and Where we are now")

According to its statement, Meta will focus on areas that affect many of its community members. For example, it will focus on messaging, monetization of content and the improvement of Meta Pay.

## Other factors that might have influenced the discontinuation of Meta NFTs
There is no doubt that Meta’s publicized reasons for discontinuing the integration of NFTs with Facebook and Instagram are the key ones. Nevertheless, there are other factors which could have contributed to that conclusion.

First, it seems that the hype associated with NFTs has decreased because many NFT followers have realized that [most NFTs](https://www.gate.io/uk/article/20083 "most NFTs") are mere JPEGs without any utility. The situation has become worse following the introduction of artificial technology NFT generators. This simply means that the NFT buyer is paying an individual for just writing a [_script_ at Binance Bicasso](https://www.gate.io/blog_detail/2342/bicasso-the-ai-powered-nft-generator "_script_ at Binance Bicasso"),  DALL-E or any other AI NFT Generator.

The chart below shows the decrease in the demand for NFTs between April 2022 and January 2023.

![](https://gimg2.gateimg.com/image/article/1680149478421680149108_.pic.jpg)
Decrease in NFT trading volume - Non-fungible.com

As observed from the chart, the sales volume of NFTs has decreased during the period. Another contributing factor is that it is very easy for NFT creators to copy other NFTs. Nonetheless, it is essential to note that there are NFTs that have value, particularly those backed physical assets.

Second, Meta may be shutting down on Facebook NFTs and Instagram NFTs due to some financial difficulties. Already, the company laid off 11,000 employees in November 2022 as a means to reduce its operating costs.

The prolonged bear market might have also weighed down the company. Clearly, the $13.7 billion loss which Meta’s Reality Labs, the division of Meta that focused on augmented reality (AR) and Virtual reality incurred last year, shows that the company may be in financial difficulties.

Another notable development  was the departure of David Marcus, the former head of payments and cryptocurrencies. At the moment, it’s not clear whether his departure could have influenced the company’s change of position on NFTs.

Meta has not only discontinued NFT integration with Facebook and Instagram but also closed its Novi project in September 2022. By the way, Novi was Meta’s business project used for international money transfers and remittances transactions.

## Conclusion
Meta has announced its intention to discontinue the integration of NFTs on Facebook and Instagram. Its main motive for doing that is to shift its investments to support projects that have greater impact on its users. However, it has promised to keep on supporting worthwhile NFT initiatives.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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