Twitter TWTR recently announced the launch of a tool utilizing which users can showcase non-fungible tokens (NFTs) as their profile pictures. The feature is currently available on iOS to users subscribed with the blue subscription service of Twitter.
The new tool designed by Twitter connects the users’ Twitter accounts with their crypto wallets holding the NFTs. Twitter displays the NFT profile pictures as hexagons to differentiate them from normal profiles. Upon clicking the profile pictures, the NFTs and ownership details are shown on the screen.
Like other major big tech companies, Microsoft MSFT and Meta Corporation FB, Twitter has already taken measures to enter the fast-growing NFT space. Last year, the company added the functionality to send and receive Bitcoin. Twitter’s journey in cryptocurrencies and NFTs started when Twitter boss jack Dorsey sold his first tweet as an NFT for more than $2.9 million.
The latest initiative to introduce NFTs on the social media platform is anticipated to help Twitter win market share in the crypto and NFT market space.
Twitter, Inc. Price and Consensus
Twitter, Inc. price-consensus-chart | Twitter, Inc. Quote
Techs Battling to Control NFTs and Metaverse
The NFT space has experienced massive growth since the beginning of 2021. NFT trading volume has surpassed the $10-billion mark for the first time. Enterprises like Twitter have been lured by this rapid wealth creation and are extensively participating in the industry, which will further increase the trading volume.
Twitter is exploring the crypto universe and supporting NFT trading. Artists can use the platform to connect their crypto wallets and take payments directly through Twitter. They can also take tips in the form of cryptocurrencies like Bitcoin, Ethereum or through crypto wallet apps.
However, after the launch of the recent tool, a widely circulated tweet by security researcher Jane Manchun Wong highlighted how an outage at venture-backed NFT marketplace OpenSea temporarily blocked NFTs from loading on Twitter and raised questions regarding the security of trading and maintaining assets using the social media platform.
Other big tech giants like Microsoft have been keenly venturing into the new NFT asset class. Microsoft’s M12 venture fund recently invested in NFT start-up Palm NFT Studio.
The company has raised a total of $27 million that will be utilized to develop projects on the Palm Protocol, an energy-efficient Ethereum sidechain. Microsoft is looking to go beyond private, permissioned blockchain and into broader user cases.
Another major participant in this investment is AT&T T. Through its subsidiary Warner Bros., AT&T and Nifty have created The Matrix Avatars using Epic Games' MetaHuman Creator. These were minted on the Palm platform.
AT&T and Nifty minted 100,000 avatars, which were all sold out and can only be bought or traded in the secondary market like Coinbase, FTX and Binance.
These avatars were minted in an eco-friendly 99.99% more energy-efficient platform, so ESG compliant investors might be interested in buying these NFTs thus pulling new investment into the industry.
Twitter’s biggest rival is social media pioneer Meta Corporation, earlier known as Facebook. Last year, Facebook rebranded itself to focus more on bringing Metaverse to life. Meta CEO Mark Zuckerberg has had this metaverse vision ever since it purchased Oculus and its leading consumer VR operations back in 2014 for $2 billion.
Meta is looking to rival Twitter and developing Instagram as a platform to support NFT trading and generate significant revenues from the fastest-growing asset in the cryptocurrency industry.
Twitter currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past year, Twitter’s shares have tumbled 20.8% against the Computer and Technology sector’s growth of 8.1%. The Zacks Consensus Estimate for 2022 earnings remains unchanged in the past 60 days at 14 cents per share.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Meta Platforms, Inc. (FB) : Free Stock Analysis Report
Twitter, Inc. (TWTR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research