NFT firms say Apple rules make App Store ‘impossible’

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NFT startups and trading firms say they are ignoring the App Store because Apple’s rules and 30% commission make it unacceptable to them.

The market value of NFTs — firms producing non-fungible tokens — has been affected by the volatility of the value of the cryptocurrency. So start-ups and merchants would reportedly like to be on the App Store and thus be able to reach a wider audience, but most of them won’t.

According to InformationApple is now pushing for its usual 30% commission on in-app purchases to also be paid on all transactions. This in particular has prevented NFT startup Magic Eden from ever offering in-app trading, even after Apple cut fees to 15% for firms making less than $1 million a year.

In the case of NFT trading between users, a typical marketplace takes only 2% to 3% of a transaction. Under Apple’s rules, companies will lose heavily on every deal.

However, it’s not just the commission. Information says a number of NFT firms have the issue that an App Store purchase must be made in dollars or another physically backed currency. It does not accept cryptocurrencies.

Since the exchange rate of cryptocurrencies varies so much, developers cannot simply set the equivalent in dollars.

Artur Sabintsev of blockchain company Pocket Network told the publication that the issue made it “very difficult to price because you have to dynamically program all those values.”

Sabintsev said he advised one of his clients to allow users to buy in-game currency in the same way that some games do. They buy currency, and this transaction earns Apple 30%, and then they spend it in the app on transactions.

In particular, selling NFTs in apps is particularly problematic.

“It looks like the position is that Apple doesn’t really want to [App Store] users will be able to buy or sell NFTs,” said Alexey Falin, CEO of NFT Rarible startup market.[It’s] almost impossible because it’s a fixed subscription or fixed prices.”

Perhaps this notion is supported by Apple’s reported delay in approving NFTs and crypto apps for the App Store. It took several months for the Rarible app to appear on the App Store, compared to a few days for the Google Play Store, according to Falin.

This means that such applications make it to the store, but it seems that they usually act as a showcase for their services. Actual sales or transactions are redirected to the browser site and not to the app.

It is reported that Apple did not specifically address the problem of NFT application delays with Information, and instead stated that its 500 reviewers review 90% of applications within 24 hours. Apple also declined to comment on other criticisms of the NFT, instead directing the post to the App Store’s general rules.

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