Illustration: Aïda Amer/Axios
Coinbase has killed a non-fungible token (NFT) function on its mobile wallet because Apple demanded a cut, even though the cryptocurrency platform wasn’t getting a cut either.
Driving the news: The company nixed a “Send NFT” function in its Coinbase Wallet, because it costs money (ether) to send an NFT.
- Meanwhile, the iPhone maker — which has come under fire for the stiff cut it charges larger app makers — has claimed that “gas” fees required to send NFTs should be paid within the app, according to Coinbase.
Why it matters: Many large firms (and not a few informed users) in Silicon Valley are mad about the 30% Apple takes from any transaction that takes place on a large developer’s iOS app.
- Spotify and Epic Games have been fighting it a long time, and Elon Musk has joined that fight now that he’s running Twitter.
- Even the French are upset with the Cupertino-based giant.
What they’re saying: “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 Wallet posted in a Twitter thread.
Context: Apple controls the most lucrative app marketplace in the world. Coinbase has, at times, been one of its most popular apps.
Zoom in: To send an NFT (to do literally anything on a blockchain) costs the sender a little money. Every time a user takes any action that goes into Ethereum or related blockchains, the user needs to pay the many computers that are going to run that computation.
- This is called “gas” but is actually paid in the coin of the blockchain realm (when it’s on Ethereum, gas is paid in ether).
- Still, Coinbase gets none of this when a Wallet user hits “send NFT.” It goes entirely to the blockchains’ validators. It’s just how Ethereum works.
- Nevertheless, money is changing hands through one of its apps, so Apple believes it deserves a cut.
Catch up fast: In October, updates to the Apple app store guidelines gave a firm “no” to…
