Non-fungible token (NFT) trading startups don’t want to sell their offerings through the Apple App Store because 30 percent commissions on in-app purchases and other strict rules bleed them dry.
According to a report in The Information, Apple insists that its regular 30 percent commission from in-app purchases should also be paid on all trades.
This prevented NFT startup Magic Eden from offering trading through its app, even after Apple lowered its commission to 15 percent for companies making less than $1 million annually.
“So far, however, most see some obstacles, including the up to 30 percent commission Apple charges for in-app purchases, as well as pricing conventions that are difficult to apply with volatile digital assets,” the report said.
A typical NFT marketplace only charges 2-3 percent of the transaction.
However, according to Apple’s App Store guidelines, NFT startups will lose heavily on any deal.
Since in-app purchases on the App Store must be made in dollars or other currencies, cryptocurrencies are also not accepted.
Arthur Sabintsev of blockchain firm Pocket Network was quoted as saying that this “makes pricing really difficult because you have to dynamically program all these values in.”
“It feels like 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.
Apple said its 500 reviewers review 90 percent of apps within 24 hours. However, the company did not comment on the NFT startups’ criticism 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.
According to the report, metaverse-linked 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.
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