Apple is considering allowing 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 NFT transactions on apps available through the company’s app store. Apple’s demand has received pushback from members of the NFT community. Recent media reports claim that NFT marketplace Magic Eden has decided to pull its app from Apple’s App Store.
Sydney Zhang is Co-Founder and Chief Technology Officer of Magic Eden Marketplace According to reports Apple has cut its commission to keep NFT players away from the App Store.
Apple is receiving backlash from the community despite its offer to cut its commission by 15 percent for NFT platforms that generate less than $1 million (roughly Rs. 8 crore) in annual revenue.
By industry standards, NFT marketplace commissions are typically 2.5 percent, making Apple’s demand for a 30 or 15 percent commission seem overpriced.
Apple says NFT programs can only sell NFTS through in-app purchases, forcing many startups to limit mobile functionality due to a 30 percent transaction fee. # Financial pic.twitter.com/nY8fTB8Bq5
— Chen Wen (@chenwen520_wen) 24 September 2022
Have you read the newspaper?
“… a typical NFT marketplace would take 2-3 percent commission. However, according to a new report from The Information, Apple is looking for a 30 percent commission from any NFT deal conducted through iOS apps.”
— :drop_of_blood::Skull: AMERICAN RADASS (@MERICAN_RADASS) 25 September 2022
Reacting to Apple’s warning, Epic Games CEO Tim Sweeney stressed that “Apple must stop”.
Now Apple is killing all NFT app businesses it can’t tax, crushing another new technology that could rival its outrageously overpriced in-app payment service. Apple should stop. https://t.co/4KChp6jtFZ
— Tim Sweeney (@TimSweeneyEpic) 23 September 2022
Due to Apple’s hefty commissions, NFT marketplaces that depend on the App Store for exposure have limited functionality on their platforms to avoid fees.
Apple has yet to comment on whether it has revised its commission cut, but there are NFT players who don’t mind paying the price to expose their platform to more than a billion Apple users worldwide.
“Everyone is focusing on Apple taking a 30 percent cut of every transaction, not realizing that 1B+ players can hold ETH wallets in every mobile game,” Limitbreak CEO Gabriel Leydon said in a tweet.
Apple has decided to allow developers to sell NFTs within games/apps. Everyone is focusing on Apple that 30% cut of every transaction will allow 1B+ players onboarding ETH wallets in every mobile game! https://t.co/BPJj3gD5r2
— Gabrielle Leydon (free, herself) (@gabrielleydon) 23 September 2022
Owning NFTs has recently become a trend as digital assets have proven to be a profitable business tool for many big brands.
A total of $260 million (roughly Rs. 2,100 crore) has been collectively earned by high-end luxury brands including Nike, Gucci, Dolce and Gabbana from the sale of their NFT shares.
The NFT market will be worth $231 billion (approx. Rs. 18,41,300 crore) by 2030 and believes it is too big a business to ignore, Tarusha Mittal, COO and Co-Founder, Uniform, in a conversation with Gadgets 360. UniFarm is a multi-token reward program.
