Twitter and TikTok Embrace NFTs: Has Mainstream Adoption Arrived?

Author: FRANCISCO RODRIGUES, Cointelegraph

*Original Title: * 《Twitter and TikTok embrace NFTs: mainstream adoption incoming?》

Translated by: Linqi, Chain Catcher

Last year, Twitter's user base steadily grew, surpassing 185 million. The company is experimenting with NFTs, allowing users to showcase their collections as profile pictures.

According to Twitter's senior software engineer Mada Aflak, the platform is developing a new feature that will allow users to import their NFT collections from blockchain wallets. This feature will display a verification checkmark based on the blockchain where the NFT was created. (For example: twitter.com)

Verified NFTs on Twitter could be the answer to the ongoing issues that have plagued crypto Twitter. Earlier this year, following the explosive growth of NFTs and the trading of collections like CryptoPunks for hundreds of thousands or even millions of dollars, they began to be used as personal avatars.

While ownership can be easily verified on the blockchain, on social media, anyone can copy and paste another person's profile picture and use it as their own avatar. When this starts happening with extremely expensive NFTs, collectors are understandably unhappy.

For example, a piece of NFT artwork by digital artist Mike Winkelmann (Beeple) sold for $69 million, while leading NFT marketplace OpenSea saw monthly sales reach $4 billion. This involves a significant amount of money, and while some believe that copying and pasting NFTs only makes them more valuable due to the attention they receive, others wish to have unique ownership and usage rights over their digital assets.

On social media, other people's NFTs can be easily reused without any form of verification process. For instance, to verify ownership of their NFTs, users can link their wallets, although doing so may potentially compromise their anonymity. Showcasing NFTs and verifying ownership could now become part of a new reputation system online.

A New Reputation System in the Digital World

Early cryptocurrency users were admired for their foresight, seeing what others did not in a market that was illiquid and high-risk at the time, which is now worth trillions. Owning expensive and rare NFTs can now be seen as a way to flaunt "crypto savvy" and demonstrate pride in being a member of the community.

Alex Salnikov, co-founder and product lead of the NFT marketplace Rarible, pointed out that the launch of NFTs on Twitter is "just a matter of time."

He added that for an increasingly digital world, this feature could become part of a new reputation system, stating that "the significance of Twitter's new feature is not about proving that a certain NFT belongs to an individual." In his view, the opposite is true:

"The most important aspect is the data access that this feature unlocks: What is the provenance of the NFT, who were the previous owners, what was its purchase price? This is a new reputation system in the digital world."

Jesse Johnson, co-founder of the DeFi and NFT crossover project Aavegotchi, expressed his excitement about Twitter verifying NFTs and the possibilities it brings for showcasing our digital identities, adding that as our real-life selves intertwine with digital avatars, "'what's in your wallet' and 'who you are' are equally valid sources of social identity."

Twitter's CEO Jack Dorsey, a well-known BTC supporter, sold the first tweet ever posted on the platform for $2.9 million, and it is not the only social media giant testing the waters with NFTs.

In an announcement released on September 28, TikTok revealed it will launch an NFT series inspired by its top creators, including Lil Nas X, Bella Poarch, and Curtis Roach. TikTok's NFTs will be launched on the Ethereum network and powered by Immutable X, a new scaling solution for Layer 2 NFT protocols. (Currently in auction)

The series, named TikTok Top Moments, will feature six TikTok videos from the most influential creators on the platform, celebrating their impact in helping it become one of the largest social media platforms in the world. Sales proceeds will go directly to content creators and NFT artists.

Salnikov commented on TikTok's move, stating that celebrities on the platform now "want to monetize through NFTs (the primary medium of the metaverse)," which is "good news for the entire market," as it represents "the mass adoption the crypto industry has been waiting for over the past decade."

With over 1 billion users, TikTok is one of the largest social media platforms in the world. Its use of blockchain technology brings it a step closer to mainstream users, who may never have considered or realized that they could hold assets on the blockchain.

Monetizing Intellectual Property

Daniele Mensi, managing director of DigitalBits, commented that NFTs are "changing the way we value ownership," adding that TikTok's move "ushers in a new era of creating value for global consumers."

Mensi further stated that anything can be an NFT, including TikTok videos. Thus, TikTok stars can now sell their content as NFTs, giving "fans the opportunity to own their work." He believes:

"This paves the way for NFTs to be more easily accepted. As the term becomes more recognized by the public, people will realize the value and necessity of NFTs."

Sasha Ivanov, founder of the Waves blockchain, stated that TikTok's ability to "create cultural trends and hyperlinked global communities will play a key role in the development of the entire ecosystem."

Over time, TikTok has been integrating blockchain technology into its business. In August of this year, it partnered with blockchain streaming platform Audius to develop a feature called TikTok Sounds. This collaboration allows Audius users to export songs created on the protocol to TikTok.

Solo Ceesay, co-founder of the creator marketplace Calaxy, stated that TikTok's actions are raising awareness of the broader applications of NFTs as "community-building and intellectual property (IP) monetization tools."

Ceesay believes that monetizing intellectual property has been a hot topic for years, and NFTs "prove scarcity," which could open up "the next wave of consumer adoption of cryptocurrencies."

TikTok and Twitter are now actively embracing NFTs, but this journey has been a wild one. In 2013, the emerging cryptocurrency community discussed the potential of colored coins, which had to bring real-world assets onto the blockchain. Eight years later, the discussion is about how blockchain-based unique assets can enter their favorite social media platforms used by billions.