We've recently seen a shift in the NFT market, with many projects taking a step back and the overall enthusiasm fading significantly. The same goes for Meta, which has announced that it's ending its NFT display projects across both Facebook and Instagram in order to focus on other priorities.
As Meta's Head of Commerce and Fintech, Stephane Kasriel, explained, the company will be looking at other ways in which it can support creators, people, and businesses. It hopes to develop new methods for creators to connect with their fans and monetize their work.
It was back in April 2020 that Meta initially announced its foray into the NFT world, but since then, the broader downturn in digital ad spending has caused the company to reassess its spending plans. As a result, Meta has had to cut jobs and close down various projects, with its NFT push now added to the list.
The enthusiasm around NFTs started to decline due to the downturn in spending, as well as various crypto market shifts, such as the collapse of FTX. Many analysts have argued that JPEGs aren't really worth anything and were never likely to be a lasting trend, while a number of creators have also been turning to AI generators to create their pieces.
All in all, it looks like Meta's decision to end its NFT display projects on Facebook and Instagram was the right one, as the enthusiasm for this form of digital asset has significantly waned over the past year. The company will continue to explore other ways to support creators, with messaging and Reels as two likely targets for further development.