Instagram's NFT project is the first step in a still-developing creative monetization approach.
The Meta-owned social networking platform expressed interest in turning non-fungible tokens (NFTs) into a stream of revenue for producers catering to its billion-plus user base shortly after launching its Digital Collectibles offering on Monday.
It is up to users to figure out how to utilize it. Instagram's NFT experiment will initially only allow a small number of producers to exhibit their digital art on the platform, with no sales, trading, or fees.
Money will eventually enter the picture. On Monday, Instagram posted a job listing for Creative Blockchain Experiences, asking for help to create the strategy and roadmap for future blockchain-enabled designer monetizing experiences.
According to the job posting, developers might utilize blockchain technology to develop meaningful, monetizable, and acknowledged ties with their fans that are meaningful, monetizable, and recognized wherever.
In the multi-billion dollar creator economy, millions of consumers on Instagram and other social media apps already sell items and brand partnerships to their subscribers, according to Jon Victor, who oversees Web 3 and NFT strategy for crypto firm Protocol Labs.
Victor warned that not everyone will want NFTs. He referenced Ubisoft's criticism among mainstream gamers following its disastrous entry into NFTs earlier this year.
That could explain why Instagram's test program is limited to just a few developers and collectors at first.
Getting these artists on deck with NFTs will only appeal to a small percentage of their audience. Given Instagram's tremendous size (whose user base is in the billions), Meta and its founders are still looking at a huge revenue opportunity.
Instagram refused to respond to this report but pointed CoinDesk to Meta CEO Mark Zuckerberg's previous words promoting the platform's need to lean into all the numerous ways that creators may generate money, including through NFTs.
In a recent earnings call, Meta's top brass hammered at the "creator first" slogan, with Zuckerberg saying the monetization push was vital to stand our services distinct in April.
In a video introducing the pilot, Instagram CEO Adam Mosseri said, "One of the challenging things that we need to address as an industry is how to enable creators to make a livelihood doing what they love."
Digital collectibles, according to Mosseri, will not appeal to everyone. However, he believes that a subset of creators who want it will be able to capitalize on the potential in meaningful and monetizable ways.