Amazon Taps Web3 Domain with NFT Project Plans

Amazon is entering the cryptocurrency sector for the first time. And the eCommerce titan is interested in non-fungible tokens (NFTs) rather than cryptocurrencies. According to a report issued by Blockworks on Thursday (January 26), the online store intends to roll out an NFT effort this spring. The revelation from the cryptocurrency sector journal claims many people acquainted with Amazon’s intentions, all of whom assert that Amazon has been studying the creation of digital assets firm on its principal platform, and not through Amazon Web Services (AWS).

Amazon, the world’s biggest retailer, has maintained a distance from the cryptocurrency business while investing in and achieving success with other upcoming digital commerce initiatives, such as online selling. Amazon’s arrival into the Web3 ecosystem might offer a significant boost to the legitimacy and vibrancy of a sector that is now at a crossroads.

As initially disclosed by PYMNTS, the amount of newly issued NFTs has decreased by 60%, and the number of proactive traders is a third of what it was at the start of 2022. Individually, the sports shop Fanatics has gotten bored with NFTs and is presumably selling their controlling ownership in Candy Digital at a loss.

Amazon is hardly the only conventional institutional firm putting its boots into the NFT marketplace, notwithstanding industry obstacles. In recent times, Fidelity Investments submitted trademark applications for its native NFT platform.

A Fidelity Investments spokeswoman told PYMNTS via email that although it is early to discuss recently submitted trademark applications, they confirm the company’s reputation for innovation. According to reports, Amazon’s Web3 objectives include blockchain-based gaming and NFT memorabilia. Sources contacted by Blockworks say that an April rollout has been “penciled in” despite the fact that the initiative is still under creation.

Uncertain is Amazon’s intention to start a marketplace, but any efforts in that route by the Seattle-headquartered behemoth would cause ripples reverberating through industry stalwarts such as OpenSea or Rarible given Amazon’s size, scope, and influence.

Andy Jassy, the CEO of Amazon who succeeded founder Jeff Bezos, is no novice to the collectibles sector. According to the CEO’s profile, he served at MBI as a project manager for around five years following his graduation from Harvard University.

Amazon has not yet disclosed any details on possible recruits or the development of new internal teams to lead the NFT and blockchain gaming activities. Amazon’s Web3 goals are likewise cloaked in ambiguity. Jassy remarked in a CNBC Squawkbox interview in April 2022 that he sees NFTs in Amazon’s roadmap.

“I anticipate that the growth of NFTs will remain substantial. We’re likely not near to introducing cryptocurrency as a payment option for our retail company, but I think cryptocurrency will develop in the future and it’s feasible… it’s likely in the future,” he stated at the time. This seems to be the case currently, or at best this spring.