NFT (non-fungible token) marketplaces are willing to shut down their services on Apple’s App store due to a 30% tax with strict rules.
Non-fungible tokens have been a messiah for creators and investors since its inception. The crypto community welcomed the NFT space and aimed to expand it to the next level. But there are hurdles in the road for NFTs with tight crypto laws and regulations. Apple is not behind adding more troubles for the NFT space as the giant has recently imposed a 30% commission on in-app purchases (NFT sales) and other tight rules for the industry.
NFT Trading Apps Are Dead On Apple App Store
The NFT market is evolving and giving optimistic returns and job positions to investors and creators of the cryptocurrency industry. However, the NFT industry seems to face a failure ahead as marketplaces are unable to utilize the NFT boost on the app store.
NFT startups and firms are unwilling to offer their services on Apple’s App store due to a 30% commission on all NFT trades, making it untenable. Moreover, the tax sometimes exceeds 30% depending on several circumstances and developers are often forced to pay a significant amount to run their search ads as Apple places ads even on individual search pages.
The founder and CEO of Epic Games, Tim Sweeney, said, “Apple is killing all NFT app businesses it can’t tax, crushing another nascent technology that could rival its grotesquely overpriced in-app payment service.” A report stated, “So far, though, most see some obstacles, including the up to 30 per cent commission Apple charges on in-app purchases, as well as pricing conventions that are difficult to apply to volatile digital assets.”
Huge Loss For NFT Marketplaces
An NFT marketplace charges nearly 3% on every transaction, and according to Apple’s policy, the in-app purchases must be executed in dollars as Apple does not accept crypto, making it nearly impossible for the developers of marketplaces to set a fixed price in dollars as the price of crypto always keeps changing.
Arthur Sabintsev from blockchain company Pocket network said, “Makes it really hard to price it because you have to program all these values in dynamically.” This step from Apple has stopped popular NFT marketplace Magic Eden from offering its services on the app store even after the tax was reduced to 15% for firms making a revenue below $1 million annually.
Alexei Falin, CEO of NFT startup marketplace Rarible, said, “It feels like the position is that Apple doesn’t really want [App Store] users to be able to purchase or sell NFTs. It is almost impossible because it’s fixed subscriptions or fixed prices.”
According to Juniper Research, daily NFT transactions will likely rise from 24 million in 2022 to 40 million by 2027. The report further stated that Metaverse-linked NFTs will become the fastest-growing NFT sector in the industry over the next five years, increasing from 600,000 transactions in 2022 to 9.8 million by 2027.
However, Apple seems to ignore all these optimistic results of the NFT industry as it made a tough deal for NFT trading apps to continue their offerings in the app store. However, Apple did not make any comments regarding the criticism in the crypto space; instead, it said that 500 reviewers check 90% of apps within 24 hours, as Rarible claimed that it took several months to start their business on the app store.