Is Apple out of their mind? What’s this Web2 dinosaur even doing?
These are the questions tearing through Web3 communities this week.
Apple announced they would allow NFT sales on their App Store, but they will take a 30% commission from all NFT sales. Developers have the green light but will be stuck with this Web2 commission model.
This 30% fee is on par with other in-app purchases; however, compared to other NFT marketplaces, a 30% cut amounts to highway robbery.
The most popular NFT exchange, OpenSea, charges a 2.5% commission. Entrepot, the first decentralized app to run entirely in Web3, built on Dfinity’s Internet Computer, charges a 1% commission.
What gives? Does Apple have its head in the sand?
Missing Out
When a company is as established as Apple, they have the cash to position themselves as a leader in NFT exchange. They have the opportunity to make it simple for companies to develop on their platform.
Apple could easily make the commission minimal and both buyers and sellers would flock to their marketplace. No sweat. They’ve done the opposite. Some companies are backing out. Solana withdrew its NFT market, Magic Eden, even after Apple offered to lower the fee to 15%. The commission fees aren’t the only downside.
Cryptocurrency is not accepted yet. Currently, the only option available is to trade in dollars. Since the cryptocurrency exchange rate varies enormously, developers can’t set a firm equivalent in dollars.
“[It’s] almost impossible because it’s fixed subscriptions or fixed prices.” – Alexei Falin, CEO of NFT marketplace Rarible
According to Falin, getting the Rarible app in the App Store took months. Getting onto the Google Play Store took mere days.
The Good and the Bad
Comments on Apple forums screamed, “Good for Apple!” “NFTs are a scam!” and “This is why I buy Apple.” A reader could get lost in these comment threads and believe Apple is looking out for the little guy, protecting their consumers, or digging their heels into Web2.
But Twitter users, and those with ties to Web3, have a different view.
A reply to this post included, “We went from ‘what are NFTs?’ to Apple actually taking a position and acknowledging that NFT projects can be transacted in store” – @ abuNft on Twitter.
Apps included in the app store offer legitimacy. It signals to consumers that a technology is becoming more widely accepted, and Apple supports it.
Get On Board, Normies
NFTs aren’t going away. Neither is cryptocurrency. No matter how much people cry about it, it will not disappear. There is utility and community built into NFTs – that’s what the Web2 crowd doesn’t understand.
Yes, there are scams, but scams are everywhere. During the pandemic, people scammed the US government PPP loan program for $80 billion. NBC called it “The biggest fraud in a generation.” So, should the US government stop helping out its citizens altogether?
No.
Scams aren’t going away, and neither are NFTs. Normies need to start their education now. It’s better to learn about the technology, function, and utility rather than sit on that balcony like the grumpy old Muppet men.
Yes, Apple will, for now, take 30%. The company may be missing a huge opportunity to let smaller/newer companies thrive and position themselves as a leader in new tech. But Rich Cabrera said it best: Apple is “treating NFT sales as every other transaction. That is bullish.”
About Kit
Kit Campoy is a former retail professional turned freelance writer. She writes about Leadership, Retail, and Web3. Contact Kit for your content needs.