Amazon Is Working on its NFT Initiative
After years of speculation, retail giant Amazon is reportedly working toward NFTs in 2023.
After years of speculation, retail giant Amazon is reportedly working toward NFTs in 2023.
According to insiders familiar with the matter, Amazon’s dive into NFTs could be expected sometime in the spring as the firm makes a bid for its slice of the pie. As reported by Blockworks, the company has been making behind-the-scenes efforts to launch its very own digital collectables. According to multiple sources, this will include entities like layer-1 blockchains, blockchain-based gaming startups and developers, and digital asset exchanges.
Two sources said that Amazon is focused on blockchain-based gaming as well as NFT-related applications. Another source revealed that one example currently in the works is to get Amazon customers to play more crypto games and claim free NFTs. The NFT offering has been touted to run on the actual Amazon site rather than AWS, with insiders suggesting that a Web3 hiring spree is on the horizon.
The company executives are said to have reached out to at least one family office recently. Initial plans involved doing at least one NFT drop with an artist, however, these plans have evolved significantly. Amazon has been dropping hints about its NFT interest since early 2022, with CEO Andy Jassy stating that he could see the company selling digital collectibles “down the road.” Also, last September the European Central Bank chose 5 entities, including Amazon, to prototype the frontend of their digital euro project, which clearly shows Amazon’s long-term interest in the crypto world.
“We knew it was possible. But now it seems like it’s really happening. That’s going to affect the existing players in the space — if they execute and do this right and are smart about it,” said one of the insiders.
Amazon’s 98 million monthly users will make it a major player in the NFT space, comparable to current market leaders, OpenSea and Rarible. However, presently it may not be the best time for NFT projects as transaction volumes and floor prices are at an all-time low from the raging highs of 2022. We continue to observe.