Will Apple’s 30% commission on NFT sales be detrimental?

Sahana Kiran
Source – Unsplash

With the bears taking over the crypto market, NFTs and other crypto-related products took a backseat. This came as a shock to many considering the fervor around the NFT business. Several in the community, shunned discussions about how NFTs were the future following the plummet in its sales. Non-fungible tokens were a mere fad in the eyes of many. However, prominent platforms continued to see potential in the market. Apple’s latest move noted how the ardor around NFTs hadn’t subsided.

Tech giant Apple was clearly one among them. Just last week, the firm announced that it would allow the purchase of NFTs through apps that were found on its marketplace. While this got the community elevated, the information that followed suit in the announcement came as a disappointment to many.

Apple’s latest NFT initiative came with a 30 percent commission on NFTs sold through the apps listed on its marketplace. This exorbitant number garnered immense hate considering the standard NFT marketplace commissions were priced at 2.5 percent.

Tim Sweeney of Epic Games expressed concerns over Apple’s latest move. He tweeted,

“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.”

Will Apple’s global dominance lure in firms despite its exorbitant commission?

The NFT market is still nascent. Despite widespread adoption, NFT platforms were still working towards spreading across the globe. Therefore, the community speculates that several platforms are likely to explore Apple’s latest initiative despite its 30 percent commission in order to utilize its global reach.

The CEO of a Web3 firm, Gabriel Leydon even stated,

“Apple has decided to let developers sell NFTs inside of games/apps. 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!”

However, Solana’s NFT market Magic Eden did not seem to be at par with Apple. It was brought to light that Magic Eden decided to withdraw from the App Store following the tech giant’s latest policy. The platform reportedly declined Apple’s offer even after the commission was lowered to 15 percent.