Mon. Feb 6th, 2023

While it might seem like good news for the adoption of the technology, some Web3 proponents scoffed at the fees, which are many times higher than other platforms, including market leader OpenSea, which charges a 2.5% fee per NFT transaction.

Xiao Yi, co-founder and executive chairman of Hong Kong software company Animoca Brands, is one of Apple’s critics. He told Fortune that while Apple’s decision may drive wider adoption of non-fungible tokens, it will also drive out Web3.

Reports elsewhere say that major NFT marketplace Magic Eden is taking down its app in protest, but a company spokesperson confirmed to Fortune: “We have not withdrawn our service from the App Store. Our app is still available as a showcase Magic Eden lists and mints tools use, but it doesn’t support transactions.”

Siu goes on to compare the 30% fee to the higher taxes in the Nordic countries, but in this case the fee Apple offers isn’t worth it.

“Taxes are high in Sweden, but maybe I chose to live there because the high taxes gave me something,” he said. “The problem with Apple is that they charge you 30% because they are Apple and no other explanation is given.”

Apple did not immediately respond to a request for comment.

While Apple may have been the most important channel for distributing apps or games in the past, Siu said the company’s performance in this area has declined as people find recommendations online or through friends and social media.

“The only reason you pay this tax is if you think Apple can give you millions of users that you can’t get,” he said. “Once you have millions of users and you get to the scale of Epic or Fortnite, they’re like, ‘Wait a minute, why do I keep paying this tax?'”

The growth of blockchain-based gaming, Siu said, could turn to the blinking Apple, adding that “the economies of scale and opportunity to play blockchain games have become so important that, like an open market, they will eventually had to surrender.”