Meta, the parent company of social media giants Instagram and Facebook, has announced that it will be discontinuing its integration of non-fungible tokens (NFTs) on its platforms.

On Monday, the head of commerce and financial services at Meta, Stephane Kasriel, announced on Twitter that the shutdown will allow the firm to focus on other means to motivate and support creators and businesses. 

Meta Winding Down NFT Support To Shift Investments

Meta’s short-lived NFT initiative did not begin testing with select Instagram producers and some Facebook users until May and June of last year, respectively. Meta extended NFT support on Instagram for creators in 100 countries by July.

Some product news: across the company, we’re looking closely at what we prioritize to increase our focus. We’re winding down digital collectibles (NFTs) for now to focus on other ways to support creators, people, and businesses. [1/5]

— Stephane Kasriel (@skasriel) March 13, 2023

NFTs have rapidly gained popularity in recent years, with digital artwork, collectibles, and other items selling for millions of dollars in online auctions.

The sudden surge in NFTs has been attributed to a combination of factors, including the rise of blockchain technology and a growing interest in owning unique, one-of-a-kind digital assets.

Kasriel clarified that Meta will not abandon its objective to help creators interact with their followers, but rather shift its focus to other communications and revenue tools, such as Reels.

Meta will also continue to collaborate with NFT and Web3 content creators that utilize its suite of tools to assist them in expanding their communities.

Cost-Cutting Measures

The Wall Street Journal reported on Friday that Meta intends to conduct additional waves of layoffs in the months ahead. In November, Meta laid off 11,000 workers, or almost 13% of its global workforce, marking the biggest reductions in company history.

The bear market and pandemic have taken their toll on the tech industry as several major companies have announced layoffs in recent months. In addition to the pandemic, the bear market has also resulted in a decrease in investment in technology, leading to a slowdown in hiring and an increase in layoffs.

The tech industry, once seen as a stable and lucrative career path, is now facing uncertainty as companies struggle to adapt to the current economic climate.

Meta’s augmented and virtual reality branch, Reality Labs, lost $13.7 billion in 2022. The excitement surrounding NFTs has subsided as Meta rides out the storm.

After months of hype and soaring prices, the frenzy around NFTs appears to be cooling off. Recent data shows that sales of NFTs have decreased significantly since their peak earlier this year, indicating a possible shift in interest among buyers and collectors.

Experts attribute this decline to a number of factors, including a flooded market, waning novelty, and concerns around environmental impact. 

Despite this, some enthusiasts remain optimistic that NFTs will continue to play a significant role in the future of digital art and collectibles.

-Featured image from Hygger