American tech giant Apple <a href="https://www.theinformation.com/articles/how-apples-app-store-policies-squeeze-nft-startups/">now allows</a> NFTs to be sold and bought through the App Store. This policy change offers new opportunities for crypto firms and other blockchain-based apps. There are, however, a few caveats. 

The first is that Apple gets a sizable 30% share of each transaction. The second snag is that all transactions must be made in US dollars, ruling out cryptocurrency as a possibility.

App developers making more than $1 million per year via the App Store will have their profits slashed by 30%, while those earning less will see their revenues reduced by 15%. As a consequence, developers cannot profit from selling their NFTs. This might also limit the number of developers that want to build and sell NFTs on the platform, thereby stifling NFT market innovation and development. Not surprisingly, this policy has been heavily criticized by the crypto community.

Tim Sweeney, the CEO of <a href="https://tingbits.com/post/greasemonkey-torquedrift2/">Epic Games</a> — the company behind the Fortnite video game – <a href="https://twitter.com/timsweeneyepic/status/1573377990100238338?s=46&t=3TcxHKMXFeOblWCI8nG7wg/">tweeted</a>:

<blockquote>“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.”</blockquote>

As reported by The Information, Magic Eden, a Solana-based NFT market, has also decided to withdraw its services from the App Store. Apple offered to reduce its commission by 15%, but Magic Eden declined.

While some have questioned Apple’s move to charge a commission on NFT purchases, others have noted that the shift comes at a good time for the NFT industry. With the App Store opening its doors to NFT creators, developers and companies will have a popular platform to market their NFTs and attract more people.

<a href="https://tingbits.com/post/gabe-leydon-blockchain/">Gabriel Leydon</a>, the founder of the Digidaigaku NFT project, sees the bright side of the situation. Leydon <a href="https://twitter.com/gabrielleydon/status/1573432171972685826/">tweeted</a>, “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.” 

He <a href="https://twitter.com/gabrielleydon/status/1573435780084932613/">added</a> that he is “happy to give Apple a 30% cut of a free NFT.”

The commission is, of course, not the only problem. According to reports, Apple does not accept cryptocurrency payments on its platform. Users must make transactions in US dollars or other physically-backed currency. Because the value of cryptocurrencies fluctuates so rapidly, developers cannot assign a monetary equivalent.

“It feels like the position is that Apple doesn’t really want [App Store] users to be able to purchase or sell NFTs,” <a href="https://appleinsider.com/articles/22/09/23/nft-firms-say-apple-rules-make-the-app-store-impossible/">said</a> Alexei Falin, CEO of NFT startup marketplace Rarible. “[It’s] almost impossible because it’s fixed subscriptions or fixed prices.” 

Apple’s commission and payment policies could limit the mass adoption of crypto features on the App Store. Despite these hurdles, Apple’s engagement in NFTs is encouraging for the cryptocurrency community. It indicates that the tech titan is open to new technologies and eager to experiment with commercial strategies. 

Stay tuned for more updates.

Here’s what you need to know about Apple’s new policy and what it could mean for the future of NFTs.

Apple Now Allows NFT Sales - Here’s What It Means for NFT StartUps

Here’s what you need to know about Apple’s new policy and what it could mean for the future of NFTs.

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