Instagram users will soon be able to mint, buy, and sell Polygon-based NFTs directly on the app. According to the Meta announcement, the platform plans to start its NFT marketplace.
The news went public during the Creator Week 2022 event when Meta (META) declared that Instagram users would soon be able to create, display, and sell non-fungible tokens (NFT) on the social media platform. The new feature marks Instagram’s latest Web3.0 integration and gives Instagram an edge over fierce rivals like TikTok and YouTube.
Instagram’s New Digital Collectibles Feature
Instagram launched a digital collectibles feature only recently and made it available to users across 100 countries. The feature allows account owners to link their digital wallets and display NFTs they have bought or created. Once connected, the NFTs can be showcased on the owner’s feed with a shimmery effect as a mark of authenticity.
The feature also allows creators to make digital collectibles and sell them on and off Instagram, giving them an “end-to-end toolkit” to create, display, and sell the NFTs. A systematic video of the new feature shows that NFT creators can choose which royalty percentage they want to go for, from 5% to 25%. Upon selection, creators would connect their bank or PayPal account for payment.
Instagram will also support showcasing video-based digital collectibles on its platform, including integrating the Solana blockchain and Phantom wallet. This is thanks to the new feature’s ability to use Arweave, a decentralized data storage protocol, to store creators’ NFTs.
The announcement cites Polygon blockchain as the chosen platform for launching the innovative feature and testing it among a select group of creators across the U.S. Amber Vittoria, Refik Anadol, Jason Seife, Dave Krugman, and several others are among the chosen few. Speaking about the partnership, Polygon co-founder Sandeep Nailwal said:
“This move represents a remarkable milestone in the evolution of Instagram’s existing NFT functionality and a natural next step to bring Web3 to the mainstream.”
A blog post by Polygon praises NFTs for opening new opportunities for artists to leverage the economic value of their work and transform their social capital into financial reward. Fans can support their favorite creators by collecting and curating their work.
Noteworthy, Instagram supported Ethereum, Polygon, and Flow blockchains before the latest development, including linking third-party wallets such as Rainbow, Metamask, Trust Wallet, Coinbase Wallet, and Dapper Wallet.
No Charges For The New Feature
Along with the news, Meta articulated that the new feature comes for free. Users will not have to pay fees for displaying or sharing their digital collectibles across Meta’s Instagram and Facebook platforms.
Moreover, there will be no extra fees for selling the NFTs, at least for the next two years. Nevertheless, users will be charged for purchases made within the Instagram app on both Android and iOS devices. The announcement states:
“Digital collectible purchases made within the Instagram app on the Android and iOS operating systems are subject to applicable app store fees.”
Meta also assured creators and collectors alike would not have to pay gas fees for digital collectibles purchased on Instagram upon launch but did not issue any timeline.
Even with Apple and Google only supporting in-app purchases using fiat currencies, it is worth noting that Instagram users may not be able to buy NFTs with cryptocurrency from the Instagram app.
Effect Of The Announcement On Polygon MATIC
Upon the announcement that Instagram will leverage the Polygon blockchain for users’ benefit, the native token of the Polygon network, MATIC, spiked more than 14% a few hours after the announcement. The uptick adds to the recent move by Reddit to use Polygon’s blockchain for its highly successful Collectible Avatars NFTs. The news also influenced the price of Arweave’s native token, AR, causing a more than 50% price surge.