Quick Guide About Instagram NFTs

 

Mark Zuckerberg has announced that Instagram will begin testing Instagram NFTs to introduce this new technology to more people and make it more accessible to a wider consumer base. The same functionality will soon be rolled out to Facebook (and possibly all other Meta apps such as WhatsApp and Facebook Messenger). Additionally, YouTube CEO Susan Wojcicki suggested that YouTube could help monetize its network of creators by adopting Web3 technologies and NFTs.

At the start of 2022, Twitter announced their non-fungible tokens (NFTs) for the Premium users so they can use in their profile pictures as hexagon-shaped on Twitter. Then Reddit also revealed that they too had been looking at NFT avatars on their platform. After Reddit, OnlyFans introduced that they were interested in allowing their content creators to use NFT profile pictures that had been bought with Ethereum. 

What is the meaning of it for collectors and creators? While not much has been revealed about this new Instagram system, those are what we can tell so far.

 

Quick Guide about Instagram NFTs:

1. About NFT
2. How Do Instagram NFTs Work?
3. What Does It Cost?
4. Is It Safe?
5. Which Creators Will Be Included for the First Launch?
6. FAQ

 

About NFTs

Instagram does not need any introduction about it, but what exactly are NFTs? If you already know about NFTs, you can skip this paragraph. If not, we suggest you continue reading.

NFT is a digital asset that is one of a kind (similar to a cryptocurrency) and it is managed on blockchains. Everything in digital format can be an NFT from art to video clips and even tweets. It is like owning a valuable trading card or an original piece of art or antique in the world we live in. Copies of a well-known work of art may exist, but the real value is to have the original. If you purchase an NFT, then you will be the only owner of it. So when you buy an NFT, you would own something unique that cannot be replaced or can be exchanged for a similar NFT.

So, if you follow news about NFTs and Instagram, you’ve probably seen this coming. In March Zuckerberg talked in his ‘Into the Metaverse: Creators, Commerce, and Connection’ session about how they plan to bring NFTs to Instagram soon at the South by Southwest (SXSW) conference. While not many details were disclosed but their plans were leaked before the “official announcement” in May already.

Also, nearly a year ago, Instagram hosted Creators Week for the first time. It is a series of invite-only events. This event has longed for three days. It was for helping creators gain more followers and earn more money.

However, some of the invited creators who are invited described the event as a cheap way to get ideas from the NFT industry. One of the NFT creators, Sean Williams (who is also a full-time artist with the WEIRDWILDWORLD art brand), had an interview with Forbes and shared that he felt that Instagram is forcing expert artists to share their knowledge with Instagram’s engineering team.

Also, Sophie Sturdevant, an NFT artist shared with Forbes that Instagram feels like a friend who only contacts you when they need help with the move. 

While many creators are not entirely happy like them. So, CoinDesk predicts this move will likely lead to an unforeseen powerful need and will increase the visibility of NFTs. And according to Social Media Today, the prevailing view among advocates is that it is still too early to see its adoption.

Considering NFT trading has been falling, there is some wonder about Instagram’s timing. According to a report in the Wall Street Journal (WSJ), NFT sales have decreased as much as 92% since September 2021. 

Like well-known NFTs like Jack Dorsey’s first tweet’s value has been decreased. It is sold for $2.9 million and it was one of the best-known NFT sales in history. However, about a year later, when the owner of the NFT, Sina Estavi tried to sell it but did not receive any bids for over $14,000, according to the WSJ.

 

How Do Instagram NFTs Work?

Adam Mosseri, head of Instagram, has announced that a small group of collectors and creators in the United States will be able to show NFTs on their Instagram Stories, posts, and Instagram messaging. They will be called “digital collectibles”. So they will be displayed like tagged profiles and products. When you tap them, the creator’s name, NFT owner, and all the other details will be seen. 

The main reason why they start with small groups is to test it and learn from the community of users, creators, and collectors. But, Mosseri added in his announcement that there is tension between Instagram being a more centralized platform. Therefore, NFTs focused on power and trust. They hope that they will be able to figure out how to combine the distributed trust and power principle by using a smaller group. Then, using feedback from its first testing, they plan to add more functionality later on. 

Initially, NFTs on the Polygon and Ethereum blockchains will be supported. Then they plan to support Flow and Solana after that. These networks have most of the trading for NFTs.

Third-party crypto wallets such as Trust Wallet, Rainbow, and MetaMask will be supported first, and the plan is to add Phantom, Coinbase, and Dapper at a later stage. By connecting to their wallet, users can display their NFTs on their profile, and tag their creators of them (depending on privacy settings). When a collector or creator posts an NFT, it will have a shiny effect and a description of the piece can also be displayed. 

They are planning to find a way for to people can use AR to view 3D NFTs on Instagram Stories. Zuckerberg announced that this feature will be built using Spark AR. 

 

What Does It Cost?

Adam Mosseri shared a post on Twitter that there will be no fees for sharing or publishing an NFT on the platform. 

He told that the economy of the creators is important to them. But he also added that the way creators make money on Instagram right now is changing fast and it is unpredictable. He told that they hope the introduction of these NFTs will help create another chance for most of the creators. This indicates that in the future Instagram users could be able to buy and sell NFTs directly on the platform. Moreover, according to Engadget, Zuckerberg also noted that creators could be able to use the app to mint NFTs.

 

Is It Safe?

Instagram shared on its official website that keeping the platform safe and enjoyable for all its users is key for them like users can use their tools to keep accounts safe. Also, they will be able to report NFTs that violate community guidelines.

Regarding sustainability (one of the discussions about NFTs), they plan to use renewable energy. In this way, they can lower the impact of emissions associated with NFTs. 

But considering that the Instagram account of the Bored Ape Yacht Club (BAYC) has been hacked recently, there are security concerns for creators and collectors. According to CoinDesk, the hackers started a fake NFT distribution that tricked users into clicking a malicious link. So by that, they gave hackers control of their wallets.

The whole damage is like $3 million. More than 90 NFTs were stolen by hackers, including four Bored Apes and six Mutant Apes. Yuga Labs, the company that created BAYC, announced that they had two-factor authentication and security was very strict. 

Social Media Today added they weren’t sure if it was a good idea to use Meta for NFTs. This attack on BAYC’s Instagram account was not an insulating case. According to them, there are reports of millions being lost every two days through hacking and deception. These may not suit the entire NFT ecosystem, but there is still something to worry about as there is still a lack of legal support and regulation. 

 

Which Creators Will Be Included for the First Launch?

Let’s put the security concerns aside and get back to the more interesting details… According to an email sent by Instagram to TechCrunch, the following creators will be included in the first NFT test:

 

@adambombsquad

@bluethegreat

@bossbeautiesnft

@c.syresmith

@cynthiaerivo 

@garyvee

@jenstark

@justmaiko

@maliha_z_art

@misshattan

@nopattern

@oseanworld

@paigebueckers

@phiawilson

@swopes

@yungjake

 

Maliha Abidi (aka @maliha_z_art) shared how she loves how this new function will connect the traditional arts community with the Women Rise NFT community on Instagram’s website. Boss Beauties, an international initiative that creates opportunities for women and girls, also shared their excitement about this launch and added that they see this launch as a chance to remind women that anything is possible and teach them more about what can be achieved about NFTs and web3.

 

Our Thoughts

It seems like everyone is trying to join the crypto industry. Even Taco Bell released 25 NFTs in 2021. So it’s hardly surprising that a popular platform like Instagram is moving in this direction. 

There are some things that you should keep in mind. This crypto-related product is Meta’s second attempt to launch. You may remember they planned to launch Diem (Libra) in 2020. It was a permission blockchain-based stable coin payment system. However, this project was abandoned earlier this year after several regulatory hurdles and internal disagreements about the road they should take. 

You may also remember that TikTok shared its NFT drop with some of the best creators on the platform. This roster also included Gary Vaynerchuk (aka Gary Vee). However, not everything promised in TikTok came true. So, some tried but social networks and NFTs have failed to successfully combine the two industries.

But third has the charm. Will Meta and Instagram get any luckier by turning their second attempt into something successful? What will happen after the tests? Will they be able to help more creators make more money while at the same time converting a wider audience into collectors? Only with time, we will know that. But we will continue to keep you informed.

 

FAQ

 

What are NFTs?

A non-fungible token (NFT for short) is a unit of data stored in a digital ledger called a blockchain, which confirms that a digital asset is unique and therefore not interchangeable. NFTs can be associated with reproducible digital files such as photos, videos, and audio. However, access to any copy of the original file is not limited to the recipient of the NFT. While copies of these digital items are available for anyone to acquire, NFTs are tracked on blockchains to provide the owner with proof of ownership separate from copyright.

 

Where can you buy NFTs?

There are many NFT marketplaces such as OpenSea, Async Art, Foundation, Rarible, and Myth Market. Most of these platforms want you to have a digital wallet and use cryptocurrencies to pay for the NFTs. OpenSea is the biggest marketplace for NFTs and has over 700 different projects today.

 

Who are some of the most popular NFT creators?

Many of the NFT creators are digital artists but there are also celebrities, brands, and content creators who have had success with NFTs. Some of the most popular NFT creators are listed below:

• Beeple (aka Mike Winkelmann)
• Larva Labs
• Micah Bowbak (aka Mad Dog Jones)
• Trevor Jones
• Pak
• Hackatao
• Grimes

 

How do you create an NFT?

You should need to be really interested in making and selling NFTs because it is not an easy thing to create one. You should be prepared for technical issues and other things such as transaction fees. But if you are ready to create here is a short road map for you:

• Deciding NFT type that you want to create,
• Finding a marketplace to sell it,
• Buying cryptocurrency for funding your wallet,
• Creating a crypto wallet,
• Add cryptocurrency that you bought to your wallet,
• Connecting your wallet to the marketplace,
• Marketing your NFT.

 

How can you market your NFT?

There are several crypto and NFT marketing agencies that can help you market your NFTs such as:

• NeoReach
• Blockchain App Factory
• Viral Nation
• Coinbound
• Blockchain PR
• Lunar Strategy
• Crowdcreate
• X10 Agency