Amazon is launching its own NFT marketplace called the “Amazon Digital Marketplace,” with a significant difference compared to other NFT marketplaces. The effort is still developing, but April has been rumored as the time for Amazon to unveil its crypto ambitions. It’s not clear who is leading Amazon’s NFT initiative, but the platform is expected to run out of Amazon proper, not its popular web-hosting platform AWS.
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A Centralised NFT Marketplace?
Although Amazon has a significant user base, it is not allowing NFT purchases with web 3.0 wallets like Metamask but with credit cards, with their Amazon account serving as their wallet. While some are critical of this decision, it has the potential to widespread NFTs and the use of blockchain among the masses. Amazon has no plans to accept cryptocurrency or wallets anytime soon.
Limited NFTs only
Amazon is planning to allow users to buy a limited number of NFTs initially. The marketplace will launch with 15 NFT collections, and it will initially be available in the US, with plans to expand to other countries later on. While this move could potentially onboard millions of new users to NFTs, it also comes at a cost. The adoption of NFTs in this way means that companies will be at the center, controlling the entire marketplace and acting as their customer’s “bank,” while prioritizing convenience over decentralization.
Therefore, although this move may significantly boost NFT exposure and lead to more mainstream adoption, it is a purely centralized play, not Web3, and could be considered Web 2.5. Whether the price of this adoption is worth it remains to be seen.
It is still unclear which personnel is leading Amazon’s NFT initiative, and the details about the platform are still unfolding. However, two sources said that the platform is set to run out of Amazon proper rather than its popular web-hosting platform, Amazon Web Services (AWS).
Physical NFTs Linked to Clothing
An intriguing feature of Amazon’s NFT initiative is its emphasis on physical goods. Customers will soon be able to purchase fashion-focused NFTs that correspond to tangible clothing items, such as jeans, sneakers, and sweatshirts. While the physical clothing is shipped to customers’ doorsteps, the NFTs will be sent to their NFT accounts. This approach is reminiscent of Nike’s early adoption of this concept, as the apparel retailer acquired virtual assets firm RTFKT in 2021.
Is Amazon exploring Crypto Games too?
Amazon is not only focusing on physical goods in its NFT initiatives but also exploring opportunities in the world of NFT gaming. The company is reportedly developing a strategy to offer free NFTs to customers who play crypto games. This indicates that Amazon’s Web3 plans have expanded and diversified, with the company exploring various other Web3 initiatives. Although the end goals of Amazon’s Web3 efforts are not fully known, there are indications that the launch of this project could pose a significant threat to NFT marketplaces like OpenSea and Rarible.
Well, is it Official Already?
Amazon has not made any official announcement yet. However, several popular media agencies like theBlock, Yahoofinance and many other has already written on this topic stating unnamed sources.
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My Personal Take on Amazon launching NFT marketplace
How I personally see this news is as: Amazon’s entrance into the NFT marketplace could lead to a significant boost in exposure and mainstream adoption of NFTs. However, the platform’s decision to only allow purchases with credit cards and Amazon accounts instead of web 3.0 wallets like Metamask could be seen as a step away from the decentralized nature of blockchain technology.
Additionally, Amazon’s centralized control over the entire marketplace raises concerns about customer privacy and convenience over decentralization. Nonetheless, the platform’s emphasis on physical goods and its plans to offer free NFTs to customers playing crypto games indicate a diverse set of Web3 initiatives.
I think Amazon’s NFT marketplace could potentially expand NFT use cases and bring NFTs to a broader audience, but it is crucial to keep an eye on the platform’s development and its impact on the Web3 ecosystem.