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Apple is looking to allow apps that sell non-fungible tokens (NFTs) to be featured on the App Store. The iPhone maker is expected to charge a 30 percent fee on all the NFT transactions that occur on apps available via the company’s app store. This demand from Apple has received pushback from members of the NFT community. Recent media reports have claimed that under the circumstances, NFT marketplace Magic Eden has decided to pull its App from Apple’s App Store.
Sidney Zhang, co-founder and chief technology officer at the Magic Eden marketplace has reportedly said that Apple’s commission cuts are to blame for keeping NFT players away from the App Store.
Apple is facing backlash from the community despite its offer to slash its commission to 15 percent for NFT platforms earning less than $1 million (roughly Rs. 8 crore) in annual revenue.
As per industry standards, NFT marketplace commissions are usually around 2.5 percent, which make Apple’s demand for 30 or 15 percent commission appear overpriced.
Apple says NFT programs can only sell NFTS through in-app purchases, forcing many startups to limit mobile functionality because of a 30 percent transaction fee. # financial pic.twitter.com/nY8fTB8Bq5
— Chen wen (@chenwen520_wen) September 24, 2022
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“… A typical NFT marketplace will take a 2-3 percent commission. However, according to a new report from The Information, Apple is looking for a whopping 30 percent commission from any NFT deals conducted through iOS apps.”
— :drop_of_blood::skull: AMERICAN RADASS (@MERICAN_RADASS) September 25, 2022
Reacting to Apple’s behest, Epic Games CEO Tim Sweeney emphasised that “Apple must be stopped”.
Now Apple is killing all NFT app businesses it can’t tax, crushing another nascent technology that could rival its grotesquely overpriced in-app payment service. Apple must be stopped. https://t.co/4KChp6jtFZ
— Tim Sweeney (@TimSweeneyEpic) September 23, 2022
Owing to Apple’s hefty commissions, NFT marketplaces looking to rely on the App Store for exposure have limited the functionality on their platforms in order to escape charges.
While Apple has not yet commented if it will revise its commission cuts, there are NFT players who do not mind paying the price to have their platforms exposed to over a billion Apple users around the world.
“Everyone is focusing on Apple wanting its 30 percent cut of each transaction without realising this could put an ETH wallet in every single mobile game onboarding 1B+ players,” Gabriel Leydon, CEO of LimitBreak said in a tweet.
Apple has decided to let developers sell NFTs inside of games/apps. Everyone is focusing on apple wanting its 30% cut of each transaction without realizing this could put an ETH wallet in every single mobile game onboarding 1B+ players! https://t.co/BPJj3gD5r2
— Gabriel Leydon (FREE,OWN) (@gabrielleydon) September 23, 2022
Owning NFTs has recently become a trend, with the digital assets proving to be a lucrative business tool for several big brands.
A total of $260 million (roughly Rs. 2,100 crore) has collectively been bagged by high-end luxury brands including Nike, Gucci, Dolce & Gabbana with the sales of their NFT pieces.
The NFT market will be a $231 billion (roughly Rs. 18,41,300 crore) behemoth by 2030 and it’s too big a business to be ignored, believes, Tarusha Mittal, COO and co-founder of UniFarm said in conversation with Gadgets 360. UniFarm is a multi-token reward staking programme.
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(This report is auto-generated from other sources Kashmir Bulletin holds no responsibility for its content.)
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