Non-fungible tokens create huge opportunities for brands and creators. Even social media platforms want to get involved, including Facebook, Instagram and TikTok. There is a real NFT obsession among social media giants and their efforts are likely to increase over time.
In recent months, we have seen a complete shift in momentum for non-fungible tokens. Where companies used to ignore the sector because it was a “fad”, it has now become clear that NFTs have long-term potential. Ever since Twitter offered the option to use NFTs as profile pictures for Twitter Blue accounts, the momentum has continued to build. Today, all major social media platforms have high hopes for non-replaceable tokens.
Meta, the parent company of Facebook and Instagram, set an exciting example. The rollout of 3D avatars for Facebook, Messenger and Instagram offers a glimpse of what NFTs could be capable of in such an environment. While the functionality is not yet available in all countries, it has brought NFTs to many people’s feed posts. That, in turn, has made the featured collections more popular.
Youtube, the world’s leading video content platform, entered the NFT space, albeit much quieter. The company has delivered personalized NFTs to platform influencers, although there hasn’t been too much “buzz” around that approach. A similar approach by Reddit, which allows suspects to change their profile pictures via NFTs, has so far received lukewarm reception. Still, 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, although there is a solid plan of action. The collaborative virtual reality platform Horizon Worlds offers a glimpse into the Metaverse and how it is changing social dynamics. According to a recent blog post by AAX, there is a plan to explore the NFT space by launching a native marketplace and embedding NFT trading functionality on Instagram and Facebook.
For other platforms, such as Twitter, TikTok, YouTube, etc., it will be a matter of figuring out monetization options for digital content. Twitter will apparently be exploring options to publish and track NFTs through its platform and use them as profile pictures, marked with a special icon to confirm authenticity. TikTok will release a video NFT collection featuring the most popular creators, to be released later in 2022.
By default, NFTs allow content creators to monetize their content, whether artwork or otherwise. Social networks make digital content highly accessible, making them a solid means of bringing a mainstream audience into the NFT world. Even without enabling direct monetization, these platforms can still connect buyers and sellers for NFTs.
It can be argued that non-replaceable tokens and social media go hand in hand. Without popular profile photo projects like Bored Ape Yacht Club and CryptoPunks, the world wouldn’t know these projects exist.
However, that’s still very different from running a marketplace or letting users 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 the momentum.