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Instagram NFT Feature
What are NFTs and how do you present them on Instagram?
Social media agency eBakery
What Twitter had already introduced in January is now also becoming a reality for Instagram. We are talking about NTF’s. That’s why we’re taking advantage of this opportunity to tell you what NFTs are, why they’re becoming more and more popular, whether you should be interested in them, and what you can do with them on Instagram. However, if you need help with the planning and implementation of your social media content, please take a look at our social media agency page and make an appointment directly there.
What are NFTs?
But now to the basics around NFTs. NFT first stands for “Non-fungible Token”. By definition, it is a “cryptographically unique indivisible, irreplaceable and verifiable token that represents a specific item, whether digital or physical, in a blockchain.” First of all, that’s a lot of technical terms that you don’t have to understand right away. We’ll break these down again for you in a moment. Roughly paraphrased, however, NFTs can be described as digital works of art. Similar to a Van Gogh painting, this one is also irreplaceable and verifiable. But where the inconceivable value of such a painting comes from is difficult to explain. Because, as we all know, art is always in the eye of the beholder. That is, similar to works of art, the price is composed of other factors than, for example. the price of gold or oil or copper. The core of the definition on NFTs is the blockchain.
Instagram NFT Feature - The Blockchain Explained
Simply explained, a blockchain is a continuously expandable list of records in individual blocks. In this process, new blocks can be created by cryptographic method and appended to an existing chain. What you may be more familiar with is the cryptocurrency Bitcoin, which has the oldest blockchain. Unlike Bitcoins, NFTs are unique and not divisible, which is obviously not the case for Bitcoins. As a small fun fact on the side – exactly this criterion of indivisibility is also contained in the name, because “Non-Fungible” translates as “not interchangeable”. This means that an NFT exists only once and can only be acquired as a whole, i.e. not as, for example, an NFT. Ethereum as a cryptocurrency, that is also to a small extent, so 0.05 Ethereum for example. can acquire.
Instagram NFT feature - practical examples for NFTs
For better comprehensibility, a practical example. For this we will take a look at the Berlin rapper “Kool Savas”. One of his most famous songs is “King of Rap”. Until October 2021, the original lyric sheet still existed, but he then burned it in an Instagram livestream. The background to the action was that he wanted to draw attention to the fact that this haptic piece of art no longer exists, but lives on in the digital world as an NFT work of art. Now one or the other will probably say: “So what, it’s just a piece of paper”. The same could be argued when it comes to a Picasso – “It’s just an old canvas with colors”. But the King of Rap NFT went for a whopping €30,000 over the digital counter of NFT auction house NIFTEE. It was then sold on for €150,000. So a profit margin of 120.000€. This should then also clarify the question of whether they are worthwhile.
Adam Mosseri announces new Instagram NFT feature
Of course, there are a number of factors that need to be taken into account, such as the following. the level of awareness. In the case of Kool Savas, it would be a physically existing object that is digitized. Another example, would be purely digital products like those offered by content creator and photographer Paul Ripke. These are self-created 3D models, each reflecting a personal reference, such as. the friendship with Materia, the attachment to his own brand PaRi and much more. Now that it’s hopefully roughly clear what NFTs are, let’s move on to the question of what this has to do with Instagram. The Metaverse, which we had previously reported on, is also set to become the NFT marketplace sooner or later. As a first test phase, it is now possible for some artists to present their artwork on Instagram. The Head of Instagram Adam Mosseri talks on Twitter about the fact that it will be possible to show off created, but also acquired NFTs in the feed and Stories. This is to accommodate the creators, to enable them to secure their livelihood with it.
Are there any points of criticism?
But to look at the whole thing from the other side, are there also downsides to NFTs? First of all, NFTs raise new, legal questions. In Germany, for example, the not clarified whether the minting of an NFT itself constitutes an act relevant under copyright law. This then leads to follow-up questions. Because normally, when you sell one of your works, you only transfer the rights of use, not the copyrights. But what about NFTs? Another question is whether NFTs should be considered securities, which would make them subject to the European Prospectus Regulation. Specific points of criticism relate to long-term storage and the associated question of whether this is possible, as well as the enormous carbon footprint caused by the performance of the complex computing tasks and the associated power consumption. The accusation of being able to launder money more easily, since there is no objective price and the transactions are anonymous, also arises.
However, the fact that NFT trading is no longer a niche business is demonstrated by companies such as Nike, Microsoft, FC Bayern and Formula 1, which have already relied on NFTs as creators.
Are there any points of criticism?
What is your opinion on this? Is Instagram taking a step in the right direction or do you think it will fizzle out in the next few years anyway and be replaced by the next crypto idea? Write it in the comments, we are curious. If you need help with social media issues, feel free to contact us.
Do you have questions or need an individual offer? Do not hesitate to contact us.
Haben Sie Fragen oder brauchen ein individuelles Angebot? Zögern Sie nicht, uns zu kontaktieren.
