Major social media platforms see huge potential in NFTs
Non-fungible tokens create huge opportunities for brands and creators. Even social media platforms want in on the action, including Facebook, Instagram and TikTok. There is a real NFT obsession among the social media giants, and their efforts will likely increase over time.
The last few months have seen a complete shift in dynamics for non-fungible tokens. While companies initially shunned the industry because it was a “fad,” it has now become clear that NFTs hold long-term potential. Ever since Twitter offered the ability to use NFT as profile pictures on Twitter Blue accounts, the momentum continued. Today, all major social media platforms have high expectations for non-fungible tokens.
Meta, the parent company of Facebook and Instagram, gave an exciting example. Its deployment of 3D avatars for Facebook, Messenger and Instagram offers a glimpse of what NFTs can be capable of in such a context. Although the feature is not yet available in all countries, it has brought NFTs to many people’s feed posts. This, in turn, made the collections represented more popular.
Youtube, the world’s leading video content platform, has entered the NFT space, albeit much quieter. The company provided custom NFTs to influencers on the platform, although there wasn’t too much “buzz” surrounding this approach. A similar approach from Reddit, which allows users to change their profile pictures via NFTs, has so far received mixed reception. Even so, these are all steps in the right direction for the non-fungible token industry.
What’s next for these giants?
Meta has made it clear that they are all-in on non-fungible tokens and the Metaverse. Exploring the new digital frontier remains a somewhat risky decision, even if there is a firm plan of action. The collaborative virtual reality platform Horizon Worlds will offer insight into the metaverse and how it is changing social dynamics. According to a recent blog post by AAXit is planned to explore the NFT space by launching a native marketplace and integrating NFT trading functionality on Instagram and Facebook.
For other platforms, such as Twitter, TikTok, YouTube, etc., this will be to understand monetization options for digital content. Twitter will apparently explore options to post and track NFTs through its platform and use them as profile pictures, marked with a special icon to confirm authenticity. TikTok will release an NFT video collection featuring the most popular creators, which will be released later in 2022.
NFTs, by default, allow content creators to monetize and sell their content, whether artwork or otherwise. Social media makes digital content highly accessible, making it a solid vehicle for bringing mainstream audiences into the NFT world. Even without directly enabling monetization, these platforms can still connect buyers and sellers for NFTs.
It can be argued that non-fungible tokens and social media go hand in hand. If not for popular profile picture projects like Bored Ape Yacht Club and CryptoPunks, the world wouldn’t know about these projects.
However, this is still very different from running a marketplace or allowing users to change their profile picture and avatar via a blockchain-based token. It will be exciting to see how different platforms approach this new opportunity and try to capitalize on its momentum.