Meta is going all out to mark its entry into the Metaverse. From its rebranding to launching a VR game, Meta is pulling all the big guns. Earlier this year, reports revealed Meta’s plans to launch an NFT marketplace. This came as part of its vision for a bigger future for digital goods.
While this could mean a massive push for NFTs and the crypto space, it is worth exploring the features of the Meta NFT Marketplace and what to expect. In this blog, we do just the same and explore the broader effects it could have on the blockchain industry.
All Aboard The Crypto Bandwagon
It has been nearly six months since Meta (previously Facebook) changed its identity. The company also repositioned its business and established itself as a ‘provider of metaverse products or applications’. This created ripples within the whole blockchain and crypto community.
Meta’s rebranding effort, some say, has brought forth growing acceptance of cryptocurrencies and the underlying technology, i.e., blockchain. Prices of cryptocurrencies surged, and tokens related to metaverse projects rallied up to 400% above their previous trading cap.
Awareness about blockchain and crypto projects has also evidently picked up. Investors are buying cryptocurrencies to diversify their portfolios and partake in this lucrative virtual asset class. Since Meta’s entry, brands like Twitter, Louis Vuitton, and Nike have also ventured into crypto. They are all betting big on the success of the metaverse.
Meta began its metaverse journey by launching a digital currency wallet, Novi, in October 2021, under the Diem Stablecoin Project. The wallet is reportedly vital to Meta’s upcoming metaverse and, most significantly, to support and power NFTs overall.
The NFT Phenomenon
Following suit on Twitter Blue’s trail, Facebook, Reddit, and Instagram experimented with displaying, trading, and bidding NFTs. As rumors have it, Meta will soon allow users to display NFTs on their social media handles. Besides, the soon-to-launch Meta NFT marketplace would allow NFT trading, marking Meta’s first step into the NFT realm.
In general, NFTs have been one of the most popular and fast-growing trends in the crypto space. NFTs have spiked 21,000% to record sales up to the tune of $17 billion in 2021. NFT Marketplace pioneer, OpenSea, currently tops the leaderboard by trading volume. But with Meta’s upcoming marketplace, it would be intriguing to observe how the two compete.
Meta’s Horizon World And NFT Marketplace: Features And Expectations
Meta recently announced its plans to launch a free-to-use virtual reality platform and online video game, Horizon World. This virtual game aims to enable people to build and explore virtual worlds.
Horizon World’s most awaited feature is the Builder Bot. Through this, users would be able to give voice commands to customize their metaverse spaces. As part of this launch, Meta plans on testing out a few features, including letting creators monetize and sell their digital goods to users. With this, Meta will enable users to make in-game purchases from creators.
For each such transaction, Meta would charge 47.5% of the value of the item sold, wherein 30% of the cut would be channeled to Meta via the Oculus platform. The remaining amount will go to the Meta App store. This has garnered attention on social media, with many people pointing out the outrageous charge and how the creator’s cut would take a hit. Meta, however, holds its ground by reiterating that the amount is, in fact, a competitive rate in the current market setting.
Meta’s prime competitors in the space—OpenSea and Looksrare—levy around 2% to 2.5% of each transaction, while creators typically take between 2.5% and 7.5%. However, Meta’s NFT Marketplace and Horizon Worlds could have significantly low entry barriers considering the enormous user base it already holds and would be largely beneficial for onboarding users to Web3.
Moreover, Meta’s executives, including CEO Mark Zuckerberg, have constantly emphasized unlocking opportunities for creators and developers and having them take a bigger slice of the pie. Therefore, the world is yet to see if Meta’s fees on the sale of virtual assets will change.
Meta’s NFT marketplace and Horizon World have the potential to be a game-changer for amateur artists, crypto newbies, and creators to enter Web3, given their familiarity with Meta products such as Facebook and Instagram.
Moreover, social media influencers and people with a significant following would be able to shoot their shot in this NFT marketplace and reach new audiences. Users can also enjoy a more relevant and personalized experience given the data that Facebook collects and employs to deliver targeted products and features with precision.
It remains to be seen how most crypto users will ultimately respond to Meta’s offerings and entry into Web3. And as always, we will bring timely updates to our readers. Follow Airdrop Alert to keep up.
With Facebook’s rebrand to Meta, talks about Meta NFT.
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