Flow (FLOW) crypto rises heavily after Instagram’s NFT service rollout

Highlights

• Instagram’s support for NFTs seems to have come as a boost for the wider crypto world
• The social media platform, used by billions worldwide, will support NFTs minted on multiple blockchains
• Flow is one such blockchain, and its token FLOW, seems to be gaining heavily in the aftermath

Are cryptocurrencies under stress at the moment? The internet is flooded with such headlines as ‘Is crypto dead?’, and ‘When will crypto rise?’. But one can arguably say this is a matter of perspective.

Consider these developments. BlackRock, the American investment management firm with trillions of dollars in assets under management (AUM), has announced a partnership with listed exchange Coinbase to bring institutional investors closer to cryptoassets. New non-fungible tokens (NFTs) are being unveiled virtually every day, including heavyweight names like Madonna and Bill Murray.

And now, Meta’s Instagram, one of the most popular social media applications globally, has announced NFT integration support in 100 countries. The news has lifted one cryptocurrency, FLOW, heavily over the past few hours of trading. Let us explore the Flow ecosystem.

Flow blockchain

Although many identify Flow as a crypto token, the project is primarily a blockchain. The network claims that it helps assemble smart contracts like “Lego blocks”. The blockchain highlights its so-called ‘multi-node architecture’, which it says differentiates the network from traditional blockchains.

In a multi-node arrangement, validator nodes participate in stages during any transaction. This, Flow claims infuses a kind of ‘division of labour’ system in decentralised ledger tech.

Also read: Is Bitcoin to blame for Saylor quitting MicroStrategy’s CEO office?

Flow blockchain and Instagram

Instagram announced in May this year its intention to roll out NFT support on the platform. It began by collaborating with a limited number of creators in the US during the test phase. The platform declared it would support digital collectibles linked to the blockchains of Ethereum and Polygon to start with. Flow and Solana would be added at later stages, it was said.

Now, in the latest blog, Instagram has confirmed that it would support NFTs minted using Flow, besides the full rollout of NFT support services in 100 countries. Instagram does not have, as of now, NFT trading features, and the support is limited to uploading NFTs as posts.

Also read: What is Instagram NFT integration & how to use it?

FLOW token

FLOW, the token of the Flow blockchain, seems to have benefited from the news. It is up over 35% in a matter of a few hours, as of writing. FLOW is one of the top 30 cryptos by market cap, and the price as of writing is nearly US$2.5.

Data provided by CoinMarketCap.com

Bottom line

The answer to why the FLOW token is rising is in the announcement made by Instagram regarding NFT integration. How long this momentum will last is a matter of speculation. Right now, two news headlines -- one related to BlackRock and Coinbase’s partnership, and the other to Instagram’s NFT integration -- are supporting a positive sentiment in the crypto world.

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