Meta continues to push NFT plans – is it still a good idea?

By Jack Denton
Barrons
Translation: Thomas Steer

Meta aims to continue expanding the use of digital collectibles such as non-fungible tokens (NFTs) on its platforms despite the crypto crash and declining NFT sales.

Stéphane Kasriel, the new head of the fintech department of Meta, the parent company of Facebook and Instagram, said in an interview with FinancialTimesthat the social media giant will not deviate from its NFT plans.

NFTs are data that can be stored and exchanged on the blockchain. Blockchain is the decentralized ledger technology that Bitcoin, Ether, and other cryptocurrencies rely on. Many NFTs are digital media files, such as images. They are expected to play a central role in the growth of the Metaverse – a visionary form of the Internet, characterized by virtual and interactive worlds, for which the Meta has great hopes.

“[Meta] sees an opportunity for the hundreds of millions or billions of people who use our apps today to collect digital collectibles; and that the millions of artists who could potentially create virtual and digital goods have the ability to sell them through our platforms,” Kasriel said in the interview.

Interest in NFTs has all but died out as the digital asset space has been hit hard by a sell-off this year. Bitcoin, the largest cryptocurrency, is currently trading less than a third off its all-time high of nearly $69,000 set in November 2021. It has also just had its worst quarter since 2011. That’s when its price crosses the $1 mark for the first time.

Photo: non-editorial

Around 850,000 individual NFTs were sold last month, according to analytics firm NonFungible – a sharp drop from the nearly five million NFTs sold per month through December 2021.

The value of all NFT sales over the past week – in dollars – has fallen below $200 million, according to NonFungible – the lowest level since the first major NFT boom in the summer of 2021.

Meta’s fintech boss has confessed FinancialTimes admit that cryptocurrencies and NFTs are in a doldrums: “There’s a lot of stuff that won’t survive,” he said. However, the industry follows a well-known “hype cycle”.

Conflict of Interest Notice:

The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which may benefit from any price movements resulting from the publication : Bitcoin, Ethereum.

The editor-in-chief of the publisher Börsenmedien AG, Mr. Leon Müller, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which may benefit from any price movements resulting from the publication: Bitcoin, Ethereum.

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