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Date: 2022-12-02 02:02:50
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Coinbase Global Inc. bought a piece of news for iOS users. It stated that customers using Apple Inc.’s iOS would no longer be able to send non-fungible tokens (NFTs) via the cryptocurrency exchange’s wallet.
Coinbase Wallet said in a tweet, “Apple’s claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system so that they can collect 30% of the gas fee.”
Even if it tried, Coinbase claimed it would be unable to meet the need because the iPhone maker’s exclusive in-app purchasing system does not enable cryptocurrency.
According to Coinbase, “Apple has introduced new policies to protect their profits at the expense of consumer investment in NFTs and developer innovation across the crypto ecosystem.” The company added that the policy was comparable to Apple trying to charge a fee for each email sent using open internet protocols.
Apple did not immediately answer an inquiry for comment on the subject from a news panel.
The 30% fees have been a source of contention between the most valuable corporation in the world and other app developers. The apps included Epic Games, the creator of “Fortnite,” and Spotify, who have both accused the former of abusing its “monopoly.”
Apple’s problem with Coinbase comes at a bad time for the cryptocurrency exchange, whose shares have fallen by around 80% this year. As investors’ interest in cryptocurrencies wanes, the corporation has likewise eliminated positions in order to control costs.
NFTs, which are blockchain-based digital assets with distinctive digital signatures, gained enormous popularity in 2021, and demand has been severely hampered in recent months by the crypto winter.
Higher interest rates and concerns about an economic slowdown are causing investors to sell riskier assets, and the recent collapse of rival exchange FTX is adding to the pressure on the cryptocurrency market.
“Apple’s claim is that the gas fees required to send NFTs need to be paid through their In-App Purchase system so that they can collect 30% of the gas fee,” Coinbase said. “For anyone who understands how NFTs and blockchains work, this is clearly not possible. Furthermore, apple’s proprietary In-App Purchase system does not support crypto, so we couldn’t comply even if we tried.”
However, the block prevents customers who have crypto and NFTs in their personal Coinbase Wallets on iOS from transferring their NFTs while it is in effect. Additionally, it poses a risk to sending NFTs or cryptocurrencies through any iOS app or exchanging one cryptocurrency for another, at least when gas costs are involved. It also makes it difficult for businesses to innovate in the field when people are putting the brakes on innovation by looking for ways for Apple to profit from their apps.