NFT startups shun Apple App Store due to high commission, tough rules
San Francisco: Non-fungible token (NFT) trading startups do not want to sell their offerings through Apple App Store because 30 per cent commission on in-app purchases, and other tough rules, will bleed them out.
According to a report in The Information, Apple is insisting that its regular 30 per cent commission from in-app purchases should also be paid on all trades.
This stopped NFT startup Magic Eden from offering trading on its app, even after Apple reduced its commission to 15 per cent for firms earning under $1 million annually.
“So far, though, most see some obstacles, including the up to 30 per cent commission Apple charges on in-app purchases, as well as pricing conventions that are difficult to apply to volatile digital assets,a the report mentioned.
A typical NFT marketplace charges just 2-3 per cent of the transaction.
However, under Apple’s App Store policies, NFT startups will lose heavily on every deal.
Also, since App Store in-app purchasing must be done in dollars o r other currencies, it does not accept cryptocurrency.
Arthur Sabintsev from Blockchain firm Pocket Network was quoted as saying that this “makes it really hard to price it because you have to program all these values in dynamically.”
“It feels like the position is that Apple doesn’t really want (App Store) users to be able to purchase or sell NFTs,” said Alexei Falin, CEO of NFT startup marketplace Rarible.
Apple said that its 500 reviewers check 90 per cent of apps within 24 hours. The company, however, did not comment on NFT startups’ criticisms of the App Store.
According to Juniper Research, the global number of NFTs transactions is likely to rise from 24 million in 2022 to 40 million by 2027.
The report said that metaverse-linked NFTs will be the fastest-growing NFT segment over the next five years, increasing from 600,000 transactions in 2022 to 9.8 million by 2027.