top of page

NFT on Meta Platform?

The role of Polygon Network on Instagram and NFTs in Social Media.

A look at the future role of Blockchain in Social Networks.



TL;DR

  • The audience of members of the instagram social platform, will have the opportunity to post and share NFT.

  • This is expected to be powered by Polygon.


What is Polygon Network?


Polygon (formerly Matic Network) is a Layer 2 scaling solution supported by Binance and Coinbase. The project seeks to stimulate mass adoption of cryptocurrencies by solving scaling problems on many blockchains. Polygon effectively transforms Ethereum into a true multi-chain system (also known as the Internet of Blockchains). This multi-chain system is similar to others such as Polkadot, Cosmos, Avalanche, etc., but with the advantages and security of the Ethereum ecosystem.


Are NFTs landing on Instagram?


In a video updating on May 9, 2022, the CEO of Meta (Mark Zuckerberg), communicated his intent to give the Instagram audience the ability to post and share non-fungible tokens (NFTs). In fact, through the augmented reality software SparkAR, it will be possible to create NFTs for instagram stories.


What role does Polygon play in all this?

Well, all of this is supposed to be powered by Polygon.


Why Polygon?


Beyond the fact that Polygon's Network has managed over time to achieve high levels of efficiency compared to its competitors, what also seems to be of great interest is the team's commitment to make its structure carbon neutral (a very sensitive aspect in the blockchain theme). This feature, typically represents a great appeal when dealing with media-intensive companies, as indeed Meta (formerly Facebook) is. Polygon's native currency is $MATIC, the child of a historical typo characteristic of Polygon's original project.


However, any of you who have been following us for a while will be turning up your noses right now wondering, Okay, Meta will probably use Polygon ... why should I invest in $MATIC?


What is $MATIC?


The $MATIC token, has a very interesting native economic structure.As a whitepaper, it has two primary and one secondary uses:


(a) To pay network fees.

b) To be used as a participation token in the PoS consensus mechanism.


c) While the secondary use is as a means of payment, simply due to the fact that using $MATIC is a fairly convenient solution compared to other tokens.


In addition, the communications team of the Polygon project has repeatedly reiterated the importance of $MATIC within the network:


"The $MATIC token will continue to exist and play an increasingly important role protecting the system and enabling governance."


So, dear readers, pay close attention:The token is not security and is purely user-oriented. This means that investing in $MATIC will not directly involve an investment intended in a pure sense in the project but rather, a direct participation in its ecosystem.


It follows that, according to the supply and demand mechanism, the price of the $MATIC token will grow primarily if the uses of the network grow.


Thus, although in the world of finance 1+1 often makes -2, in this case we may still be in a context of "stock market banality" i.e. in a 1+1=2 type situation.


Let me elaborate ... Having said that, it might make sense to simply reason like this:

"META will use Polygon as its network. Then I invest in $MATIC because I expect the price to grow."


In this case, it might make sense to take on this logic because META's adoption of the Polygon ecosystem might actually increase the use of MATIC.



GRAPHICAL ANALYSIS



The token, like all its altcoin counterparts, is suffering the consequences of the current economic slowdown that characterizes the mainstream market.


The entire crypto sector is going through what for all intents and purposes appears to be a massive flight of capital from the speculative markets, to assets considered objectively less risky.


This does not mean that the speculative asset is also losing value or utility. In fact, in this case, Polygon is expanding its "business" and with it, also the chances that its network could become one of the most widely used.


The price trades on a fairly important long-term level: The $0.5 level.

This area has a strong volumetric impact, and it is certainly no coincidence that the price is using it as a springboard. Although no one outside of market makers knows whether the aforementioned springboard is pierced or not, we must always remember two very important things when investing in a project:


  • (a) We are in a period of bearish markets, and although the project appears to be viable, it is by no means mandatory that its viability must translate into instant, long-range growth. The financial world is full of such examples. The cryptocurrency one, alas, even more so.


  • (b) In a bullish market, there is a very high probability that the project will outperform the rest.


So, in our opinion, more than the price of $MATIC, it is wise to try to understand the market understood in 360° and only then, switch to individual crypto projects.


This is certainly not investment advice, just sharing our point of view.



Let us know your thoughts in our Discord...


Comments


Iscriviti alla Newsletter

 

Grazie per l'iscrizione!

Latest Articles

bottom of page