Although the non-fungible token (NFT) market has seen much better days, this week was a big one for this particular crypto niche. On the positive side, Reddit’s Collectible Avatars have turned out to be a huge success. However, Reddit and other issuers of NFTs are now facing a roadblock. This in in terms of future adoption due to an update to Apple’s guidelines regarding crypto and in-app purchases. Put simply, Apple wants a cut of these NFT sales.
Additionally, back in Bitcoin-land, the cryptocurrency is seeing historical lows in terms of price volatility. This is at a time when traditional markets are in complete disarray. Everyone in crypto is ready for the bull market to return. However, the reality is this BTC price stability could be useful in terms of adding credibility to the value proposition as a store of value.
Apple and NFTs in Crypto
One of the biggest criticisms that is level at Apple on a regular basis is the so-called “Apple Tax” that is associate with purchases made by users in apps made available via the App Store. And now, the iPhone maker is making it clear that this 30% fee will also apply to NFT trading that takes place via apps on its hardware devices. While NFT enthusiasts were happy to hear that Apple has officially embraced the buying and selling of NFTs in apps, the fine print appears to point to bad news for the NFT industry.
This is because Apple still wants a 30% cut of these NFT sales. Additionally, Apple’s own payment rails must be in use for these transactions. This is is likely to cause a number of issues. As anyone involved in the crypto space knows, crypto-based transactions are irreversible. This means selling NFTs in exchange for payments made via traditional credit or debit cards are not compatible. After all, the card owner could simply do a chargeback after receiving the NFT.
Of course, Apple could decide to add crypto to its available payment options. However, there do not appear to be any such plans in motion at this time. On top of the Apple Tax issue, the tech giant is not going to allow users to access paywalled sections of apps. This is through the use of NFT ownership or crypto-based payments. All in all, this week’s revised NFT policies are likely to limit the growth potential of this particular sector. However, exchanges that facilitate the trading of crypto assets are still exempt from the 30% fee.
Most people first find out about Bitcoin and other cryptocurrencies due to a large and sudden rise or drop in the market. However, things have been pretty stable lately. In fact, bitcoin has been more stable than the traditional stock market in recent weeks. This is the first time this has happened since 2020. For reference, much of the volatility currently found in traditional markets has to do with the high inflation numbers. Numbers that have persisted in the United States.
This newfound price stability should not come as a big surprise to those who have been tracking the ups and downs of the bitcoin market over the past decade or so. There tends to be a four-year cycle around each halving event, and we’re currently in the slow, grinding bear market of the cycle. Many people on the sidelines are still have fear to get back into crypto due to the large drop from the all-time highs hit in 2021, but it’s unclear how long this timidness will last. The leading narrative in crypto can change rather quickly, and high volatility would definitely return in a situation where it seemed clear that the bull market has returned. That said, bitcoin’s price volatility has tended to decline over the long term.
The NFT market as a whole is nowhere near its heights back in 2021. However, that hasn’t stopped Reddit’s collectible avatars from surging in popularity and reaching nearly 3 million users in a matter of months. Reddit Collectible Avatars, which are issued on the Polygon blockchain, have turned into a case study when it comes to bringing blockchain technology to a mainstream audience. Much of the success associated with this NFT project is being attributed to Reddit’s ability to abstract away much of the technical jargon that is usually associated with crypto.
For instance, these aren’t in reference to NFTs anywhere on the Reddit platform. Also, most users don’t even realize that they’re using a crypto wallet to store their digital avatars. Additionally, the NFTs are easily purchasable via traditional payment means. This is rather than forcing users to get their hands on some crypto first. NFTs have quickly become the main crypto use case seeing heavy adoption by traditional tech giants. In addition to Reddit, Twitter and Instagram have also launched and announced various plans around the NFT phenomenon.
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