Why are social media platforms obsessed with NFTs?

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Social media networks are jumping on the NFT (non-fungible token) bandwagon. It all started when users of the “Twitter Blue” account were offered to put NFTs as profile pictures. Later, Meta rolled out 3D avatars for Facebook, Messenger, and Instagram and allowed users in the US, Canada, and Mexico to broadcast virtually to apps via stickers, profile pictures, and feed posts. . Meanwhile, YouTube is distributing personalized NFTs to influencers on the platform. Additionally, Reddit has launched a first test to change profile pictures with an NFT.

NFT Market

According to Emergen Research, the Global Non-Fungible Tokens (NFT) Market Size reached USD 340 million in 2020 and is expected to cross USD 3.50,000 million in 2030. Pak’s NFT artwork grossed USD 91.8 million: The Merge was sold in 266,445 units known as “mass”. Previously, digital artist Mike Winklemann, also known as Beeple, sold his artwork, “Everydays – The First 5000 Days,” for $69.3 million.

NFTs are not currently created, bought or sold on social media platforms. But the inherently social nature of artwork aligns with the DNA of social media. Although social media platforms are passively shaping the future of NFTs, they want more skin in the game. Experts believe tech giants believe NFTs will follow the trajectory of cryptocurrency – a slow start, followed by an explosion.

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For NFT owners, posting digital artifacts on social media adds value to their holdings. Crypto-enabled social media companies have the opportunity to retain and acquire new NFT-oriented customers. Dominant social media companies can also influence the evolution of the web. The development and design of Web.3 is built around the idea of ​​storing user data on blockchains.

NFT also serves as an alternative source of income. For example, users with a ‘Twitter Blue’ subscription ($3 per month) have the NFT display option. According to Statista, Twitter will have more than 340 million monthly active users by 2024, up from 290.5 million in 2019.

Meta has rolled out avatars to display on Facebook and Instagram accounts. According to Aigerim Shorman, Managing Director of Avatars and Identity, “Virtual reality and the quest are key parts of our vision for the metaverse, but we see the metaverse as an interconnected digital world, which connects virtual reality and reality. augmented, in addition to more familiar platforms like your phone and computer. Deploying avatars on our platforms is a first step in making this a reality.

Meta wants to be the go-to market for buying and selling NFTs. By opening an NFT marketplace, Meta hopes to capitalize on the growing value of NFTs. Currently, buying and selling digital assets is a bit complicated and requires collectors to go through several platforms, where they expose themselves to the risk of fraud and failed transactions. Meta should leverage its payment processing infrastructure to create an easy digital asset marketplace.

YouTube currently distributes NFTs to creators on the platform. CEO Susan Wojcicki, in her letter ‘Our priorities for 2022’ to Youtubers, wrote: “The past year in the world of crypto, non-fungible tokens (NFTs) and even decentralized autonomous organizations (DAOs) has highlighted a previously unimaginable opportunity to grow the connection between creators and their fans. We are still focused on expanding the YouTube ecosystem to help creators take advantage of emerging technologies, including things like NFTs, while continuing to strengthen and improve creator and fan experiences on YouTube. . »

Not to mention the growing trend of “virtual YouTubers”. Most of their revenue comes from fan-funded donations, sponsorships, and the sale of merchandise. VTuber Kizuna Al is a national ambassador for tourism in Japan. NFTs are also excellent investment options, aside from the share capital component. Web.3 is becoming the future of the Internet.

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