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The App Store is being ignored by NFT projects and exchanges because of the strict rules that Apple sets, demanding up to 30% commission when trading NFT.
Apple’s tough policies lead to unsustainable NFT projects. Meanwhile, the market capitalization of NFT has been affected by recent crypto market volatility.
The App Store allows NFT to appear as a new fertile ground for crypto companies before the precarious period, but it is not. Follow The InformationApple is now emphasizing the commission up to 30% from in-app NFT purchases. This is the main reason why NFT projects choose to stay away from the platform.
For example, NFT startup Magic Eden was unable to offer in-app purchases on the App Store, even as Apple reduced its commission to 15% for companies earning less than $1 million annually.
In the case of NFT transactions between users, a normal NFT Marketplace takes only 2% to 3% of the transaction. As for Apple’s regulations, obviously companies will have to bear heavy losses for the deals.
In fact, this is not the only problem. App Store purchases are required to be made in USD or another physical currency, cryptocurrencies are not accepted. Since cryptocurrency exchange rates vary widely, developers cannot just set the equivalent in USD.
Arthur Sabintsev from blockchain company Pocket Network, shared:
This “makes it really hard to value because you have to program all these values dynamically.”
Arthur came up with a solution that allows users to buy in-app currency in the same way that some games do. They buy in-app money, and that transaction returns Apple 30%. Then they spend it in the app on transactions.
On the other hand, the CEO of NFT Marketplalce Rarible, Alexei Falin, thinks that selling NFTs in applications is particularly problematic.
“It feels like Apple doesn’t really want App Store users to be able to buy or sell NFTs. It’s almost impossible because it’s a fixed subscription or a fixed price.”
This could be the root cause of Apple’s delay in approving NFT and crypto apps for the App Store. According to this director, it took several months to bring the Rarible app to the App Store, while it took only a few days to bring it to the Google Play Store.
Apps are slowly making their way to the store, but they seem to often act as a showcase for their services. The actual sale or transaction is being routed to another browser website, rather than being done in the app.
Apple reportedly did not specifically address the NFT application delay issue and instead let 500 reviewers test 90% of the app within 24 hours. Apple also declined to comment on other criticisms of NFT on its app, pointing to the general App Store rules.
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