NFTs Are Coming To Instagram: Why Meta Is Bad On These Cryptos, And You Should Be Too | Tech Reddy

Back in May 2022, Standard Meter (META 10.25%) announced that the non-fungible token (NFT) feature is coming to its social media platforms Facebook and Instagram, allowing users to share or share their digital collections with followers. But with a new announcement, more features have been added, and Instagram is turning to the NFT market.

The news suggests that creators can list NFTs in their information available for sale, similar to other popular NFT markets such as OpenSea or SuperRare. In addition, a tipping option will be created where users can tip money to their favorite content creators. All this is possible by connecting a digital wallet for user information to receive and send payments via cryptocurrency.

The decision to enable all NFT transactions, rather than a place to display digital collections as originally planned, seems like the right thing for Meta. Although you might think that this will turn into good news for Meta’s stock, if we look closely, investors will see the opportunity.

The next big block

It was announced by Meta Polygon (MATIC 16.66%) the first blockchain to support NFT transactions. Fortunately, you can buy Polygon’s original cryptocurrency, MATIC. Like a stock, the more demand a cryptocurrency has, the higher its price. Since Polygon is the first blockchain for Instagram NFTs, the demand for MATIC is likely to increase.

Meta chose the Polygon for a few reasons. First, Polygon is very fast at processing transactions. Different Ethereum, the vehicle can go crazy and slow down to normal speed, Polygon is boasting impressive speeds of up to 7,000 transactions per second. This important feature is important to ensure that Instagram users have a smooth experience.

Additionally, Polygon has some of the lowest transaction fees of any blockchain. This means that purchases and sales do not require any additional payment from users, something that Ethereum struggled with when it was used.

Finally, the block is very environmentally friendly. A carbon-free blockchain is very efficient, and there is a plan for the end when carbon becomes negative.

What Polygon reveals is slowly becoming the best-kept secret in the world of blockchain. In 2022, many companies have partnered with Polygon, such as Disney, Coca-Colaand now Meta is always looking for ways to make it faster and cheaper.

Here’s the real opportunity for investors: Polygon is down more than 60% from its all-time high, but it’s the best year of all blockchains in terms of performance. If companies continue to focus on what is being offered in the coming years, a return to those all-time highs will likely outpace demand growth.

Data storage but on blockchain

There is another witness in the middle of this report. It is known as Arweave (AR 11.23%), this blockchain is used by Instagram as a decentralized storage solution to maintain the creators’ digital collections. Similar to Polygon, investors can buy the AR token as a way to directly invest in the Arweave blockchain.

Like Polygon, there are a few features that make Arweave part of Instagram’s new NFT initiative. First, perhaps, is the stability of Arweave. Data will remain on Arweave forever.

Additionally, Arweave’s block strength is almost constant. Most importantly, because Arweave uses blockchain and is decentralized, user data remains anonymous, anti-blocking, and immutable.

The decision to use Arweave is one of the first examples of a major technology company like Meta tapping into its potential. However in the blockchain world, Arweave has been recognized as an innovator for a long time now. Similar cryptocurrencies Cosmos, Polka dot, Avalanche, CLOSE, Solanaa The Graph Everyone uses Arweave to store transactional data. This will help them make their own blocks smaller and more flexible. The potential use cases for Arweave in the years to come are seemingly endless in a world of massive amounts of data.

The road ahead

So, since the news dropped, Polygon and Arweave have been crying. Polygon is up nearly 40%, and Arweave is up nearly 60% in hours, trading at $17, but has since recovered to $10. However, despite these gains, Polygon is still below its all-time high, and Arweave is down nearly 90% from its peak of $85.

In my opinion, the value of these two cryptocurrencies is not fully reflected in their price, and their future potential is not properly priced in. It’s hard to imagine a situation where some cases won’t arise, especially since these two blockchains have worked with some of the most famous companies in the world.