Amazon will soon unveil its NFT initiative, which will most likely revolve around blockchain-based gaming.
Amazon and an NFT project
Amazon is creating a digital asset organization, with an NFT project set to begin in the spring. According to various sources, Amazon has been touting the virtual collections initiative to a host of industry heavyweights.
These organizations are said to include Layer-1 blockchains, blockchain-based game companies and creators, and technology platform marketplaces.
Particular emphasis is placed on blockchain-based games and associated NFT solutions, which allow Amazon shoppers to play crypto activities and earn free NFT in the meantime.
Amazon’s entry into the sector is important for cryptocurrency for many reasons.
In recent months, Amazon officials have been in contact with at least one family office. The concept at the time was to execute at least one NFT launch with an artist.
Amazon’s Web3 plan seems to have developed a lot since then.
Recently, Amazon has been investigating new Web3 projects. Both the network and Amazon’s subsequent cryptographic projects are expected to require a variety of corporate hires.
Although Amazon Web Services has occasionally offered jobs for Web3 programmers and designers, the e-commerce company is not well known for its forays into the cryptocurrency or blockchain realms.
Amazon Coins is still in operation, but it’s more of a loyalty program than a cryptocurrency initiative.
Amazon CEO Andy Jassy previously stated that he is open to the company selling NFT; however, the company is not closing the door on cryptocurrencies in general.
While the initiative is still in development, and it’s unclear who will lead the effort or what it will focus on, Amazon is reaching out to Web3, a technology the company has previously expressed interest in.
In April last year, Amazon CEO Andy Jassy expressed optimism about cryptocurrencies and NFTs, foreseeing the e-commerce giant’s possible decision to start accepting cryptocurrencies as a form of payment and selling NFTs.
According to sources, the project is still in the development stage. It appears that the e-commerce giant has set April to go public with its bold crypto ambitions.
“We knew it was possible,” the source said. “But now it looks like it’s happening. That will affect those already in the Web3 space – if they are smart about it and do this right.”
Many expected Amazon, as a technological titan, to follow in the footsteps of other peers such as Meta and Microsoft; now, Blockworks sources have confirmed this plan.
After all, the crisis that hit last year and has continued this year, which has caused the profit forecasts of the major technology companies to fall short of expectations, has forced them to turn their strategies around and focus on new sources of revenue.
A key part of Amazon’s strategy to cope with the crisis may be its decision to enter the lucrative NFT market, which is forecast to reach $231 billion by 2030.
Amazon executives leading the push contacted at least one family office in recent months, one of the sources said.
At the time, the plan, in its first iteration, was to do at least one NFT delivery with an artist, the same source said. Amazon’s Web3 project appears to have evolved considerably since then.
It was unclear who was running Amazon’s NFT initiative. Details about the platform, which would include certain NFT gaming initiatives, are still unclear, but two sources said the platform will be run by Amazon itself, rather than by its popular web hosting platform, Amazon Web Services (AWS).
Another fifth source claims that Amazon has been exploring other Web3 initiatives in recent times. Regarding both the platform and Amazon’s additional crypto forays, a number of internal hires are likely to be a prerequisite, one source said.
While Amazon Web Services has posted occasional positions for Web3 developers and engineers, the e-commerce site is not as well known for exploring the crypto or blockchain realms.
An Amazon Coins program still exists, following its introduction in 2013, but it is more akin to a straightforward loyalty program than a crypto initiative.
Also unknown is the extent of Amazon’s ultimate ambitions and goals for Web3. Whether the company intends to compete with OpenSea and Rarible is unclear, but two sources say both entities would see a successful launch as a major threat.
“With the large customer base that Amazon has, they will cause a major revolution in the NFT market.”
More than 2.5 million users have so far interacted with OpenSea, the leading NFT marketplace by trading volume, according to data from Dune Analytics. There are now several well-established venues for buying and selling NFT.
Amazon and Web3
Recently, AWS partnered with Ava Labs, the company behind the Avalanche blockchain, which Ava’s Emin Gün Sirer described as “a great help for developers, both individuals, and enterprises, to create nodes and test networks on the fly with AWS in whatever legal jurisdiction is most convenient for them.”
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