Instagram is one of the largest social media platforms in the world with approximately 2 billion monthly active users. Parent company Meta (formerly Facebook) began testing a feature last year that allowed a limited number of users to connect their digital wallets and showcase NFTs they created or purchased.
NFT creators and collectors saw this as an opportunity to showcase their NFTs to consumers interested in Web3, and the feature gained popularity. Others have suggested that with Instagram’s backing, NFTs are finally going mainstream.
Sold out one after another in test operation
Encouraged by positive feedback, Instagram, which wants to embrace the creator economy, has gradually expanded its digital collectibles feature, allowing select digital artists to publish and sell NFTs directly on the platform.
Adding NFT trading functionality to a platform like Instagram is natural given its huge global user base. Many users will be exposed to the WebWeb3 concept for the first time without adding friction to Instagram’s core business model. Instagram users can buy NFTs with fiat currency, bypassing a process that would normally be difficult for Web3 newcomers.
But attracting Web3 natives is difficult. Are seasoned NFT collectors interested in buying NFTs sold on the highly centralized Web2 platform? In addition, Instagram in-app purchases are also subject to hefty 15-30% commissions from Apple or Google, reducing revenue for merchants.
Still, early NFT sales on Instagram have been successful, with the collection selling out quickly. Instagram’s strategy of getting well-known NFT artists to promote its new features worked in two ways. It attracted NFT collectors and bridged the gap between Web2 and Web3 users.
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— Sandeep | Polygon 💜 Top 3 by impact (@sandeepnailwal) January 9, 2023
Sandeep | Polygon 💜 Top 3 by impact
@AkuDreams NFT sold out in 11 seconds on Instagram.
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Aku 👨🏾🚀 Akutars
2023 off to a good start
Aku’s Dream Labs digital collectible sold out in 11 seconds on Instagram! !
The image is a preview of concept art of important locations in Aku’s future, featuring a wide range of items Aku has amassed as he explores the planet as a digital adventurer.
Engaging Web3 Developers
Blockchain natives may have been skeptical of Instagram’s Web3 expansion, but Instagram’s partnership with a well-known NFT artist has given confidence within the community. Drifter Shoots, Refik Anadol, Amber Vittoria, Dave Krugman and Micah Johnson have taken to Instagram to announce their NFTs over the past few months, and the collections have sold out every time.
“Given where many of us are sending our social messages, a digital collectible makes a lot of sense,” said artist Dave Krugman in an Instagram post announcing the first NFT release in November 2022.
Other popular NFT artists, such as Maliha Abidi and Bobby Hundreds, have also showcased their NFT creations on Instagram, valuing Instagram’s NFT feature as an easy-to-use way to get their message across to potential buyers.
“We are excited to introduce this feature, not only because it will bring conversations about NFTs to the platform, but also because it will be a chance to re-educate NFTs and Web3 about the bright future we see,” said Adam Bomb, an NFT collection. Squad,” Bobby Hundreds said.
When traditional Web2 companies try to use Web3 tools, it often creates a strained relationship. Attempts to release NFTs or buy land in the Metaverse are sometimes seen as publicity stunts to pander to Web3 fans and are not very welcome.
A blueprint for mass adoption
As the buzz around image-driven Instagram’s adoption of NFTs grows, Instagram has taken care to introduce digital collectibles in a way that feels natural to both mainstream users and Web3 natives. .
For example, Instagram users can share NFTs in their feed just like any other image, but there’s also a dedicated tab for digital collectibles, which merges and separates.
To reflect these considerations, Instagram chose Polygon to launch its Digital Collectibles feature. Polygon fits in with Polygon’s strategy of being a “funnel” for Web2 companies looking to enter the Web3.
“We have built a great funnel to make onboarding to Polygon very seamless,” Polygon CEO Ryan Wyatt previously told CoinDesk TV.
Related article: We’re the big company’s Web3 entry ‘funnel’: Polygon Studios CEO
Polygon’s partnerships with Nike, Reddit and Starbucks have also been highly successful. A holistic approach to blending brands with Web3 and a focus on making the process easier for Web2 companies is paying off.
The daily number of first-time and repeat NFT purchases in Polygon’s NFT ecosystem hit a record high last month, according to data from blockchain analytics platform Nansen.
Polygon has also had some successful, albeit costly, efforts with Web3-native companies. Y00ts, a flagship NFT project on the Solana blockchain, recently transitioned to Polygon, for which Polygon provided a $3 million grant to parent company DeLabs. It was successful.
According to Nansen data, Polygon has about three times more transactions per day than Ethereum. There are 823,000 unique active wallet addresses per day.
However, transaction volume in the secondary market (secondary market) is not as good as Ethereum, and Polygon as a low-cost blockchain focused on onboarding new collectors rather than nurturing projects for Web3 native. reflects the position of
Some polygon-based projects choose to use the term “digital collectible” rather than “NFT”. This is a move to distance themselves from the various issues plaguing the cryptocurrency market. It also sounds more friendly to newcomers unfamiliar with cryptocurrency jargon.
Related article: Should we change the term “crypto assets”?[Opinion]
Instagram’s systematic entry into Web3 has so far brought hope to other Web2 brands considering entering Web3.
We believe that crypto assets such as NFTs can be used to expand products and services and provide a friendly entrance to consumers who are interested in Web3 without isolating the Web3 natives that have supported the NFT market so far. showing.
｜Translation and editing: Akiko Yamaguchi, Takayuki Masuda
｜Image: Instagram’s digital collectible feature (Meta)
｜Original: Top NFT Artists Are Launching Projects on Instagram and Selling Out in Seconds