NFT firms say Apple rules make the App Store 'impossible'

Posted:
in iOS
Startup and trading NFT firms say they ignore the App Store because Apple's rules, and 30% commission, make it untenable for them.




The market value of NFTs -- non-fungible token firms -- has been affected by the volatile value of cryptocurrency. So startup and trading companies in the field would reportedly love to be on the App Store, and so able to reach a bigger audience -- but most won't do it.

According to The Information, Apple is now insisting that its regular 30% commission from in-app purchases be also paid on all trades. This has specifically stopped NFT startup Magic Eden from ever offering trading on its app, even after Apple reduced its commission to 15% for firms earning under $1 million annually.

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

However, it's not just the commission that's an issue. The Information says that a number of NFT firms have the issue that App Store in-app purchasing must be done in dollars, or another physically-backed currency. It does not accept cryptocurrency.

Since the cryptocurrency exchange rate varies enormously, developers can't just set an equivalent in dollars.

Arthur Sabintsev from blockchain company Pocket Network, told the publication that this issue "makes it really hard to price it because you have to program all these values in dynamically."

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

Specifically, selling NFTs within apps is particularly problematic.

"It feels like the position is that Apple doesn't really want [App Store] users to be able to purchase or sell NFTs," said Alexei Falin, CEO of NFT startup marketplace Rarible. "[It's] almost impossible because it's fixed subscriptions or fixed prices."

Perhaps backing up that opinion is how Apple reportedly delays approving NFT and crypto apps for the App Store. According to Falin, it took several months to get the Rarible app onto the App Store, as compared to mere days for the Google Play Store.

This does mean that such apps are getting on to the store, but it seems they are generally acting as showcases for their services. Actual sales or transactions are being routed out to a browser site, rather than being done-in app.

Apple reportedly did not specifically address the issue of NFT app delays with The Information, and instead said its 500 reviewers check 90% of apps within 24 hours. Apple also declined to comment on the other NFT criticisms, instead directing the publication to the App Store's general rules.

Read on AppleInsider
«1

Comments

  • Reply 1 of 34
    So, crypto is unstable, NFTs are a scam, and Apple wants rent paid. Awwwwww. Unfair…
    rob53Evan-elmike1bloggerblogAnilu_777dewmelkruppmaximaraStrangeDaysjony0
  • Reply 2 of 34
    Well this is this wonderful thing called the internet. They seem to forget that all smartphones have the ability to connect to the internet and have internet browsers. So all they need is a functional website. In 2 moves someone who actually wanted to go to theirs it's could create a bookmark on the desktop of their phone, that would function just like an app. They don't need an app to swindle people out of money. 
    NFTs are such a scam! I'd be quite interested on how much of a discount they give to celebrities who buy them, just to promote NFTs. That would be like a ball card company giving a top rookie a bunch of limited edition rookie cards.  
    rob53iqatedoEvan-elforegoneconclusionmike1bloggerblogAnilu_777maximarajony0tdknox
  • Reply 3 of 34
    rob53rob53 Posts: 3,060member
    Isn’t crypto like legalized gambling? Stock market companies don’t appear to be complaining so suck it up and pay to use Apple products. 
    mike1Anilu_777watto_cobra
  • Reply 4 of 34
    crowleycrowley Posts: 10,453member
    Excellent.  Chalk one up in the App Store benefits column.
    Evan-elbloggerblogAnilu_777maximaraStrangeDaysjony0tdknoxbaconstangpulseimagesITGUYINSD
  • Reply 5 of 34
    iqatedoiqatedo Posts: 1,761member
    Crypto technologies including cryptocurrencies are old technologies dressed for the modern age. They do and will make activities possible that are currently not and have huge potential for good, such as a means of personal privacy in public and corporate spaces that is currently not possible. NFTs have in many cases earned a justifiably poor reputation, however, they permit quite admirable use cases too. The cat is out of the bag and isn't getting shoved back in...
    lkruppjony0williamlondonOferbyronl
  • Reply 6 of 34
    melgrossmelgross Posts: 33,327member
     My hope is for crypto to just collapse and go away. No, I don’t agree that there’s anything good coming from it. Unless you deal with illegal activities, that is. NFT’s are ridiculous. I hope Apple doesn’t give in to them. If people buy them and they fail, as many have done, Apple will manage to get blamed for that, just as people who think Apple is a bank that can be squeezed to get money out of every time they fail to read the instructions and sue them.
    Anilu_777muthuk_vanalingammaximarastevegeeStrangeDaysjony0tdknoxbaconstangDAalsethwatto_cobra
  • Reply 7 of 34
    The curated App Store wins again and keeps modern day scams away from their users. Also, the internet still exists... not everything should be on the App Store.
    Anilu_777maximaratdknoxwilliamlondonAlex_Vbaconstangwatto_cobraFileMakerFeller
  • Reply 8 of 34
    xbitxbit Posts: 365member
    Good. Having NFT trading apps on the App Store will only harm Apple’s reputation.
    Anilu_777tdknoxAlex_Vwatto_cobrachasm
  • Reply 9 of 34
    mac_dogmac_dog Posts: 1,018member
    Apple should simply charge an annual subscription for these jokers who think apple’s cut is too much. The cost would cover everything from renting all aspects of getting a product to the App Store. 
    Anilu_777watto_cobra
  • Reply 10 of 34
    It's not a bug; it's a feature.
    TenApplesUpOnTopwhocaresshdhdbdstevegeeStrangeDaysjony0tdknoxbaconstangwatto_cobrachasmdarkvader
  • Reply 11 of 34
    delightful. NFTs are BS and Apple is protecting its customers and itself from this scam. 
    tdknoxwilliamlondonbaconstangwatto_cobrachasm
  • Reply 12 of 34
    scammers gonna scam
    tdknoxwilliamlondonbaconstangwatto_cobrachasm
  • Reply 13 of 34
    davidwdavidw Posts: 1,691member
    Apple gets sued all the time for not knowingly allowing apps that ends up being scams into the Apple App Store. Can you imagine the lawsuits if Apple knowingly allowed apps that are scams into the Apple App Store?

     And i don't get it. If these companies selling NFT's can sucker people into paying for NFT's, then they can surely sucker them into also paying the app stores commission.
    edited September 23 watto_cobramuthuk_vanalingam
  • Reply 14 of 34
    Quick scan of the comments confirms what I thought. We don’t care about NFTs anyway so thanks Apple for making it harder for this crap to survive on the App Store. 
    jony0tdknoxbaconstangwatto_cobra
  • Reply 15 of 34
    chadbagchadbag Posts: 1,804member
    I have no interest in NFTs.  My comments are purely from thinking about it. 

    While an NFT is technically “software”, each one being unique and Individual , they are more like a physical item when we talk about buying and selling them.  I would think that eBay would be the better comparison market wise than an App Store or streamer.  Those are selling infinitely reproducible soft goods and as such lay commission.  Selling an NFT is like selling a hard good that happens to be soft.  

    I have apps that allow buying and selling of crypto without commission. How is this really different?

    again, I have no personal interest in NFT and only passing interest in crypto. 
    watto_cobra
  • Reply 16 of 34
    lkrupplkrupp Posts: 10,183member
    So, are the NFT companies going to speak in favor of Epic like the government is? /s

    I’m kinda actually waiting for Apple to allow third part payments. The Apple Discussion Forums are full of refund requests from users who “accidentally” “didn’t mean to” “forgot about cancelling” “my kid did this without my permission”  “I didn’t authorize this” “this app sucks and doesn’t work” the list goes on. Let ‘em try and get their money back from some fly-by-night developer who uses a seamy payment outfit.
    edited September 23 jony0williamlondonwatto_cobradocno42
  • Reply 17 of 34
    danoxdanox Posts: 1,348member
    Keep them off no need to be sued for a scam.
    baconstangwatto_cobra
  • Reply 18 of 34
    It’s fine if these companies don’t want to operate via the App Store.  Many companies don’t.  It is entirely reasonable for Apple to charge what it does for providing the infrastructure.  Selling via the App Store still gives 70%. If that’s not enough, then put your price up a bit.  I suspect it’s all about Apple having money and the startups don’t. Quite why Apple should provide its services for free or at a reduced price is beyond me.
    baconstangwatto_cobra
  • Reply 19 of 34
    jimh2jimh2 Posts: 447member
    iqatedo said:
    Crypto technologies including cryptocurrencies are old technologies dressed for the modern age. They do and will make activities possible that are currently not and have huge potential for good, such as a means of personal privacy in public and corporate spaces that is currently not possible. NFTs have in many cases earned a justifiably poor reputation, however, they permit quite admirable use cases too. The cat is out of the bag and isn't getting shoved back in...
    For most it is just another opportunity to get scammed by scammers. The dream of "working outside of the traditional financial system" is just that...a dream and one that will be regulated after enough of the right people get burned. Apple is doing the vast majority of people a favor by keeping the same rules in place. Not being able to buy/sell/trade NFT's via an App is a feature. There are plenty of other ways to buy and still use your phone.
    watto_cobra
  • Reply 20 of 34
    iqatedoiqatedo Posts: 1,761member
    melgross said:
     My hope is for crypto to just collapse and go away. No, I don’t agree that there’s anything good coming from it. Unless you deal with illegal activities, that is. NFT’s are ridiculous. I hope Apple doesn’t give in to them. If people buy them and they fail, as many have done, Apple will manage to get blamed for that, just as people who think Apple is a bank that can be squeezed to get money out of every time they fail to read the instructions and sue them.
    Over many years, as a member since 2003, I have valued your opinions and analysis very, very highly. It seems though that you haven't looked at cryptographic technologies in an even-handed way. Stuff the NFTs (although beyond the very obvious scamming they offer great use cases), these technologies offer unheard of opportunities for privacy in a world where every little device and activity wants to own you. Many of my friends have given up fighting for their privacy and ostracised me, for example, for not using whatsapp to keep up with group activities. It would take a massive public movement for the fight to become mainstream and yet public activism is where change can be wrought. Devices and systems could be introduced labeled as 'ethical devices' being ones that use cryptography (and cryptocurrencies) to keep our identities and data private through every stage of collection, storage AND analysis. I view Apple's products now as ethical devices, however, privacy at even deeper levels is possible.

    Many, many people over the years have lived their lives under the belief that they have nothing to hide from authorities or governments. I have too. That's fine, until the rules are changed. Cryptographic tech can shift the balance of power over privacy back in our favour, until at least quantum computing can be brought to bear on the task of cracking keys. Quantum secure tech is perhaps on the horizon though.

    Crypto offers great possibilities but like all tech, can be used too for evil. Don't throw out the baby with the bathwater.
    watto_cobrachadbagJanNL
Sign In or Register to comment.