Soon, you will be seeing Non-Fungible Tokens (NFTs) as augmented reality (AR) filters in Snapchat as Snap is exploring ways to let artists show off their digital collectibles in the said messaging platform.
According to a report from TechCrunch, Snap is planning to start this venture with a limited set of creators in August. "In this test, artists will be able to create and mint NFTs on another platform and then import them into Snapchat as Lenses."
TechCrunch noted that just like Twitter, Instagram, and Facebook, Snap is not planning to take any money from creators to show off their digital collectible. Instead, the company wanted to focus on how those artists can monetize their work.
Snap and Other Social Media Platforms Seek to Integrate NFTs in Their Platform
Even if the crypto market is not performing well at the moment, tech companies still continue to venture in it just case its market value increase again.
Different approaches are being taken by social media platforms in integrating NFTs in their respective platform.
For instance, Twitter started making NFT a part of its mechanism by "introducing the ability to set digital collectibles as avatars for its paid users," as per TechCrunch.
Following Twitter's move, Instagram said in May that it would allow a limited set of creators to show off NFTs in their Feeds, Stories, and Messages.
Additionally, Facebook started testing a similar set of features last month. Although, this is only for a limited number of users in the U.S.
Just last week, Reddit launched its own NFT marketplace. For a fixed price, you can buy digital avatars through fiat currency.
According to Coinspeaker, the reason why social media platforms have turned to NFTs is to attract influencers and their fans.
After becoming a $40 billion global market last year, the NFT market grew in popularity. However, the hype is said to have subsided, which forced the NFT prices to take a plunge.
"The recent effort of Snap is in line with the vision of many other social media platforms seeking to ensure that its users make a living directly on its platform," according to Coinspeaker.
Read Also: Snap Inc. Files For Initial Public Offering
Snap Ventures in NFT Market Just Ahead of its Snapchat Plus' Launch
According to TechCrunch, "the leak of the NFT test seems to be part of a mini product sprint at Snap." The NFT test is coming just days after Snapchat launched its premium subscription Snapchat Plus.
As the company will be announcing its quarterly financial results on July 21, we have to check whether it will elaborates any further plans on the NFT venture.
Talking about the NFT test will help Snap send the message to investors that the tech company is working on more ideas to generate revenue. Also, it would help send the message that it is doing something to complement, or offset, "whatever ups and downs it might face in the advertising market."
In terms of NFT space, Snap's closest rival would probably be Meta. The company has already announced that it wants to bring NFT into the "real world" using its own SparkAR technology.
Moreover, according to TechCrunch, Meta's head of fintech Stephane Kasriel said "the firm aims to create a marketplace for digital collectibles that could be used in metaverse."
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