Snap reportedly plans to let users showcase NFTs as filters

Snap (ex-Snapchat) plans to allow users to showcase NFTs on its app, as social media platforms increasingly turn to digital collectibles as a means of attracting influencers and their fans despite the crypto crash.

According to sources of FT, the US-based social media platform is preparing to test a feature that would allow NFT artists to showcase their designs on the Snapchat platform as augmented reality filters. The test is scheduled to start in late-August, one of the sources said.

A roster of developers uses the Snap platform to create playful AR filters for users, known as Lenses, which can be overlaid onto real-world images. Developers will be able to mint NFTs via a third-party service off the platform before transferring them to Snap as Lenses. The technology would ensure those filters are attributable to that creator.

Although the development is at an early stage, it marks the first foray into the crypto asset sector for Snap, which is focused on the largely millennial and younger Generation Z audience.

As per the source, Snap does not have any plans to charge the creators for showcasing NFTs, but it is exploring partnerships with third parties that could help the creators monetize their designs.

Lately, social media are increasingly trying to attract online talent to boost broader user numbers and engagement, facing rising competition with Chinese-based TikTok.

Another Snap rival, Meta, plans, among others, to roll out NFT features to its 3 billion users over time, luring creators to Meta apps, its head of fintech Stephane Kasriel said last week. It hopes to build an online avatar-filled world known as the metaverse, where users will use NFTs to create and trade digital goods and services. Meanwhile, Reddit announced Thursday plans to launch its own NFT avatars collection.

Last year, NFTs exploded in popularity to become a global market worth $40 billion. But as the hype has subsided, prices have plunged in line with a broader rout of crypto assets in the past two months.

Similar to other social media, Snap has been investing in new features to help creators earn directly from the platform. This has included sharing some revenues it generates from advertising with certain influencers and offering cash prizes for top-performing posts, for example.