San Francisco: Non-fungible token (NFT) trading startups don’t want to sell their offerings through the Apple App Store because a 30% commission on in-app purchases and other strict rules will bleed them. According to a report by The Information, Apple insists that its usual 30% commission on in-app purchases should also be paid on all transactions. This has prevented NFT startup Magic Eden from offering transactions on its app, even after Apple cut its commission to 15% for businesses earning less than $1 million a year.
“So far, however, most see some hurdles, including up to 30% commission fees that Apple charges on in-app purchases, as well as difficult-to-enforce pricing conventions for volatile digital assets,” says The report.
A typical NFT market only charges 2-3% of the transaction.
However, according to Apple’s App Store policies, NFT startups will lose heavily on every transaction.
Also, since app store in-app purchases must be made in dollars or other currencies, it does not accept cryptocurrency.
Arthur Sabintsev of Blockchain company Pocket Network was quoted as saying that it “makes the price really difficult because you have to program all these values dynamically.”
“It seems like the position is that Apple doesn’t really want (App Store) users to be able to buy or sell NFTs,” said Alexei Falin, CEO of NFT startup marketplace Rarible.
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Apple said its 500 reviewers review 90% of apps within 24 hours. The company, however, has not commented on NFT startups’ criticisms of the App Store.
According to Juniper Research, the global number of NFT transactions is expected to grow from 24 million in 2022 to 40 million by 2027.
The report states that metaverse-related NFTs will be the fastest growing NFT segment over the next five years, growing from 600,000 transactions in 2022 to 9.8 million by 2027.
(This report was published as part of the auto-generated syndicate newsfeed. Other than the title, no edits were made to the copy by ABP Live.)
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