Meta is discontinuing support for NFTs on Facebook and Instagram.

Meta, the California-based technology conglomerate that owns Facebook and Instagram, is phasing out support for non-fungible tokens (NFTs) on its platforms. The decision to adjust priorities and seek efficiency comes amid ongoing turbulence in the crypto space, with major players such as the FTX exchange declaring bankruptcy in 2022. The move regarding NFTs was announced by Stephane Kasriel, head of Commerce and Financial Technologies at Meta, on Monday.

Last year, Meta introduced the option for creators to share NFTs on its platforms as these digital assets gained popularity, with sales reaching billions of U.S. dollars. However, the tech giant has now decided to discontinue this support for NFTs. Kasriel assured NFT creators that the firm will continue supporting them on Instagram and Facebook in other areas and emphasized that creating opportunities for them to connect with fans and monetize remains a priority.

In his tweet, Kasriel stated that Meta will continue investing in fintech tools that people and businesses will need for the future. The company is streamlining payments with Meta Pay, making checkout and payouts easier, and investing in messaging payments across Meta.

The end of NFT support by Meta comes after the shutdown of its Novi digital wallet last year, and the sale of assets of the Meta-backed cryptocurrency project Diem to Silvergate Capital, the parent company of Silvergate Bank. The recent collapse of three U.S. banks, two of them crypto-focused, has also affected the situation in the crypto market.

The decision by Meta to cut off support for NFTs could have a significant impact on the market for these digital assets. Meta’s vast user base on Facebook and Instagram was seen as a valuable avenue for NFT creators to showcase and monetize their digital collectibles. With this support now being withdrawn, creators may need to look elsewhere to connect with their audiences and generate revenue.

However, the move by Meta could also be seen as a rational decision in response to the ongoing volatility in the crypto market. As a major player in the tech industry, Meta has a responsibility to prioritize efficiency and stability in its operations. With the crypto market being subject to frequent fluctuations and disruptions, it makes sense for Meta to focus on areas that are more stable and less prone to risk.

In conclusion, Meta’s decision to discontinue support for NFTs on Facebook and Instagram is a significant development in the crypto space. While it may be disappointing for NFT creators who were relying on Meta’s support, it is a rational decision for a tech giant seeking efficiency and stability. The impact of this move on the broader market for NFTs remains to be seen, but it is likely to be felt by creators and investors alike.