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Instagram's NFT pilot is the first step in a still-developing creative monetization approach.
The Meta-owned social networking platform expressed interest in converting non-fungible tokens (NFTs) into an income stream for producers catering to its billion-plus user base shortly after launching its "Digital Collectibles" offering on Monday.
It is up to you to figure out how to utilize it. Instagram's NFT experiment will initially only enable a small number of creators to share their digital art on the site, with no sales, trading, or fees.
Money will eventually enter the picture. On Monday, Instagram posted a job listing for Creative Blockchain Experiences, asking for help to "create the strategy and roadmap for future blockchain-enabled creator monetization experiences."
According to the job posting, creators might utilize blockchain technology "to develop meaningful, monetizable, and acknowledged ties with their fans that are meaningful, monetizable, and recognized wherever." The product manager's job will be to assist Instagram in determining how.
In the multi-billion dollar creator economy, millions of users on Instagram and other social media platforms already sell items and brand partnerships to their followers, according to Jon Victor, who oversees Web 3 and NFT strategy for crypto firm Protocol Labs.
Victor warned that not everyone will want NFTs. He referenced Ubisoft's criticism among popular gamers following its disastrous entry into NFTs earlier this year. That might explain why Instagram's test program is limited to just a few producers and collectors at first.
Getting these artists on board with NFTs will only appeal to a small percentage of their audience. Given Instagram's tremendous scale (whose user base is in the billions), Meta and its founders are still looking at a huge revenue opportunity.
He cited the PFP market as an example of how organic communities are forming around NFTs. "It seems logical to apply this concept to creators who are already forming their own communities."
Instagram declined to comment for this report, but pointed CoinDesk to Meta CEO Mark Zuckerberg's previous words advocating the platform's need to "lean into all the numerous ways that creators may generate money," including through NFTs.
In a recent earnings call, Meta's top brass hammered at the 'creator first' slogan, with Zuckerberg calling the monetization push vital to "stand our services distinct" in April.
In a video introducing the pilot, Instagram CEO Adam Mosseri said, "One of the hardest things that we need to address as an industry is how to enable creators make a livelihood doing what they love."
Digital collectibles, according to Mosseri, will not appeal to everyone. However, he believes that a "subset of creators" who desire it will be able to capitalize on the potential in meaningful and monetizable ways.
Masnah, a street artist, is one of these creators.
eth, as he is known on social media, makes money by painting clients' larger-than-life "PFP" NFTs on the sides of buildings, which he uploads on Instagram.
Masnah.eth was hesitant to join Instagram's concept of an NFT-based creative economy, partially because it's too early to know what shape the effort would take. In a tweet, he stated, "I have to read thoroughly!"
Regardless, he stated that he is not persuaded yet.
"I don't see why I would" pursue Instagram creator monetization, Masnah remarked.
eth, which already offers future street commission rights as NFTs. "It doesn't make any sense to me."
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