One of the largest retailers in the world could soon be among the companies exploring the world of non-fungible tokens. A new report pointed to an NFT initiative from Amazon.com, Inc. AMZN coming this spring.
Here are the details and what it could mean.
What Happened: A new report pointed to Amazon exploring interest in digital assets and NFTs. The news came after it was recently announced Amazon’s cloud segment Amazon Web Services was partnering with Avalanche AVAX/USD, a layer-1 blockchain.
A report from Blockworks said Amazon was exploring interest in layer-1 blockchains, blockchain-based gaming companies and digital asset exchanges. The sources told Blockworks NFTs could be a big part of the new initiative that could launch in the spring of 2023.
One example in the report saw Amazon offering games to customers that would offer free claimable NFTs.
A source told Blockworks that Amazon was entering the crypto and NFT space was big “for many different reasons.”
“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,” the source said.
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Why It’s Important: The NFT market was booming in 2021 and saw many players enter the sector, including some big names like Nike Inc NKE, Anheuser-Busch Inbev BUD and PepsiCo, Inc. PEP.
Nike made a big splash in the NFT market with the acquisition of RTFKT, a digital sneaker company and owner of the CloneX NFTs.
Retailer Walmart Inc WMT also put forth aggressive plans for the metaverse that included shopping in virtual stores and the launch of a dedicated themed area inside the Roblox Corp RBLX game.
Shopify Inc SHOP also launched NFT integration that allowed merchants to create their own NFTs and sell them.
The report said the new NFT initiatives for Amazon would be separate from its Amazon Web Services business, but the possibilities should be considered for the company. Like Shopify, Amazon could offer NFT integration for its website partners. The company’s AWS has an NFT explainer listed on its website.
Amazon has a massive customer base, including its Amazon Prime members who pay an annual or monthly membership fee for access to free shipping, a video streaming platform and other perks.
The report did not indicate if Amazon planned on launching an NFT marketplace, which could become a competitor to market leader OpenSea.
The most likely NFT initiatives from Amazon, as mentioned above, could center around gaming and be similar to what GameStop Corp GME previously launched. GameStop used its expertise in the gaming sector to launch an NFT marketplace and to partner with gaming companies for NFTs.
Amazon purchased game streaming platform Twitch in 2014, which along with Alphabet Inc GOOGGOOGL-owned YouTube, is one of the largest video game streaming platforms in the U.S.
Along with Twitch ownership, Amazon has also released several hit games including “Lost Ark,” which could give the company an opportunity to launch games that have NFTs integrated in them.
The ownership of Amazon Prime Video and MGM Studios also offered the company the chance to make NFTs and digital assets based on hit movies and shows it could also use to promote upcoming series and season premieres.
Amazon CEO Andy Jassy has been open to the idea of the company selling NFTs in the future.
“I expect that NFTs will continue to grow very significantly,” Jassy told CNBC in April 2022. “I think it’s possible down the road on the platform.”
Jassy also said Amazon was not close to adding cryptocurrency as a payment option for its retail business. The company had been rumored to be exploring more possibilities for cryptocurrency integration at the time.
Last year, Amazon.eth Ethereum Name Services ENS/USD domain received a $1 million offer from an anonymous wallet. The ENS was purchased for 33 Ethereum ETH/USD over a year ago. With news of more NFT initiatives, Amazon could look to purchase the desirable ENS domain.
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