- Apple announced that apps can now sell NFTs through its App Store and the American tech giant will collect 30% fees on each transaction.
- Several companies have expressed their displeasure on the overpriced cut of sales.
- While NFTs are in regulators’ and lawmakers’ crosshairs, startups are now critical of Apple’s giant share of commission and pricing conventions.
NFT sales volumes have picked up pace and startups are looking for a boost from mobile apps to sell digital collectibles. However, Apple’s 30% commission has emerged as an obstacle. Startups believe pricing conventions are difficult to apply to volatile digital assets.
Also read: Shiba Inu: This is what happens when Ethereum whales move 4.35 trillion SHIB
Apple imposed 30% commission on in-app NFT purchases
NFT developers and startups took note of Apple’s update on commission on NFT sales. The Apple App Store has updated its policy and imposed a 30% commission on NFTs sold through apps on its marketplace, effectively putting NFT purchases in the same boat as regular in-app purchases.
According to a report from The Information, Apple is now onboard with NFT sales through apps listed on its marketplace but imposes its standard commission on in-app purchases of 30%. This is similar to the Android app store Google Play.
NFT developers have slammed Apple for being “grotesquely overpriced,” comparing it to standard NFT marketplace commission, around 2.5%.
Magic Eden, Solana-based NFT market has withdrawn its service from the App Store after learning about Apple’s policy change. Apple offered to lower its commission by 15%, however Magic Eden made its exit.
Other NFT marketplaces have limited their functionality due to Apple’s giant share of commissions. This is likely to limit the number of NFT sales through Apple's App Store and is likely to discourage developers from powering the sale of digital collectibles.
While most developers in the marketplaces have criticized Apple’s move, a Web3-based CEO, Gabriel Leydon, sees the positive side to the situation. Leydon said,
Everyone is focusing on Apple wanting its 30% cut of each transaction without realizing this could put an ETH wallet in every single mobile game onboarding 1B+ players! I will HAPPILY give Apple a 30% cut of a free NFT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.