Nonfungible tokens (NFTs) are finally coming to Apple. However, they are coming with a hefty fee. There is a lot of standardization and hefty transactional costs. In a report that was first published by theinformation, Apple has decided to let NFT-based apps be acquired through the App store.
Apple is a newcomer to NFT distribution, after Facebook and Instagram. But, an exorbitant 30% commission fee on NFTs bought via NFT-based apps will go to Apple.
The tech giant has left many NFT startups worried after it imposed a massive fee on all NFT sales.
Based on the Friday report that was published by theinformation, users can buy NFTs through apps listed in the App store. Sadly, NFT providers will be charged a 30% commission on all sales.
Apple has told startups it must sell NFTs through in-app purchases, forcing many startups to limit functionality in apps to dodge fees up to 30% of the transaction, even when the startups are only facilitating the trades. My latest for @theinformation https://t.co/2pKamhLmCp
— Aidan Ryan (@aidanfitzryan) September 23, 2022
The founder of Epic Games, Tim Sweeney, shared his thoughts through Twitter, addressing Apple’s price threshold as ‘grotesquely overpriced’. Sweeney also noted how Apple’s exorbitant fees can easily suffocate the whole NFT industry.
Now 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. Apple must be stopped. https://t.co/4KChp6jtFZ
— Tim Sweeney (@TimSweeneyEpic) September 23, 2022
Furthermore, Tech blogger Florian Mueller also voiced his opinion on Apple imposing a 30% fee on NFT sales, by calling it a type of ‘app tax’.
— Florian Mueller (@FOSSpatents) September 24, 2022
Apple’s huge commission tag has attracted lots of criticism from the global crypto community, drawing some comparisons with many other NFT marketplaces that have managed to keep their transactional cost threshold as low as 2.5%.
The report also noted how Solana-backed Magic Eden withdrew its service from the app store after it heard about Apple’s hefty cost demands.
Based on the report, Apple had also offered to slash its commission rate by nearly 15% to accommodate Magic Eden but the Solana-backed platform did not agree to its newly formed price policy.
Apple is now insisting that its regular 30% commission from in-app purchases be also paid on all trades. This has specifically stopped NFT startup Magic Eden from ever offering trading on its app, even after Apple reduced its commission to 15% for firms earning under $1 million
— Anime Boy (@AnimeBoyNFT) September 26, 2022