Apple recently announced allowing app providers to sell NFTs on its App Store. While app providers appreciated the news, they could not help but worry about Apple charging a 30% cut in every NFT transaction.
With over 984,000 games and 3.5 million apps, Apple’s App Store dominates the app market alongside Google Play Store. Thus, its latest announcement can work wonders for the company regarding revenue and potential customers.
As soon as Apple announced, users quickly pointed out that markets like Magic Eden and OpenSea only charge around 5% per transaction. Compared to Apple’s 30% cut, the market will naturally avoid such a huge fee.
However, Web3 CEO, Gabriel Leydon presented an optimistic glance over the situation. As per Leydon, while everyone focuses on Apple’s 30% cut, let’s not forget how the platform exposes game providers to more than a billion players. With an exposure of such scale, paying 30% should not be an issue, said Leydon.
Even though the statement makes sense, the fact remains that Apple is yet to start accepting cryptocurrencies. Several sources have confirmed that the announcement caused Magic Eden to withdraw its services from Apple’s App Store.
The platform even declined the 15% transaction cut offered by Apple. While the tech giant has a firm grasp over the smartphone domain, it has not entered the NFT or crypto circuit in any way.
With names like Coinbase and Metamask competing in the industry, Apple must propose a highly beneficial value proposition to attract users. Apple’s only involvement with NFTs is one of its executives moving to Disney to explore the industry.
While the industry expects Apple to succeed, its approach might need changes before claiming this success.