Amazon is actively looking into NFTs. Lego is entering the metaverse and companies like Adidas already have celebrated successful partnerships with iconic NFT projects such as the BAYC. NFTs are not the only use case when it comes down to Web3 but they do play an important role in this developing ecosystem. While some companies are opening themselves up to new ideas and opportunities, others are shutting their doors by trying to control digital products rather than sharing them with their customers.

Why is Meta abandoning NFTs and what does that mean for the Web3 sector as a whole?

Meta is shutting down NFTs

It was Monday when Stephane Kasriel shared his thoughts on Meta’s recent decision to abandon digital collectibles. Kasriel is the head of commerce and financial technologies at Meta. It was in 2022 when Meta rolled out NFTs on Facebook and Instagram. Now the company is abandoning the concept of rewarding creators and empowering users with blockchain technology.

Kasriel emphasized that Meta will look for other opportunities to reward creators and make spending their time worthwhile. He also encouraged NFTs creators to keep using Facebook and Instagram to amplify their work. Even though their NFTs won’t be a part of Meta’s social media platforms any longer.

Meta was leveraging Ethereum, Polygon, and Flow as technologies and was offering the NFT feature for free. Recently, the company announced another round of massive layoffs and about 10,000 employees have to leave their jobs.

Web3 is still strong

It appears that Meta wants to control the platforms that it is building. Not only the digital content but also the cash flow between users and content creators. Owning these things promises additional revenue.

When considering other companies, it looks like Meta is alone with this very idea. While it is building a corporate metaverse, other players are using Web3 technology as an opportunity for growth. Amazon is launching its own NFT marketplace next month. Lego partnered with Epic Games to develop its version of the metaverse.

Web3 and related technologies indeed took a hit during this bear market. NFT sales are down and many blockchain games are still under development. What is important is the fact that companies keep developing their dApps and crypto projects. Once products are finalized and the market picks up again, Web3 has a high potential to claim its rightful place.

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