Amazon Poised to Make a Splash in NFT Space
As rumors swirl about Amazon’s entry into the NFT market, industry leaders are abuzz with speculation about the e-commerce giant’s potential impact on the digital collectibles space. Amazon’s massive user base of over 300 million active customers worldwide offers an opportunity to onboard more people new to blockchain, industry experts say.
Part of Anthony Hopkins NFT collection.
A Game-Changer for NFTs
Amazon’s potential move into the NFT space could be a game-changer, according to Dave Broome, CEO of Orange Comet, a prolific NFT studio behind collections tied to high-profile individuals and intellectual property. “Having a company like Amazon enter with a marketplace not only helps to legitimize NFTs … it offers an opportunity to onboard the masses into web3,” Broome said.
Speculation about Amazon’s plans to launch an NFT platform began as early as last year, when CEO Andy Jassy hinted that the company might consider selling NFTs. Since then, reports have surfaced outlining how the company’s NFT platform could work, where it might initially be available, and what type of digital assets it might offer. However, Amazon has yet to officially confirm the speculation.
Potential Impact on the NFT Market
For many NFT industry leaders, it’s only a matter of time before Amazon formally begins dealing in NFTs. OpenSea, the world’s largest NFT marketplace by dollar volume, has transacted almost 12.8 million ETH (currently more than $20 billion) since being founded in 2017, according to The Block Research. As the NFT market has matured, the use cases are multiplying rapidly, including functioning as access to customer rewards programs, like with Starbucks, or offering concertgoers “digital keepsakes,” like Ticketmaster allows event organizers to issue.
Amazon could be well positioned to take advantage of any NFT-gaming boom. The company owns Twitch, a streaming platform wildly popular among video game lovers. “Given [Amazon’s] deep connection with games through Twitch, we could see a big win for web3 gaming,” said Magic Eden’s Chief Gaming Officer Chris Akhavan.
Ethereum NFT Marketplace Monthly Volume (Source: Chart embedded from The Block Crypto Data.)
Credibility Boost for NFTs
Amazon’s biggest contribution to the NFT space could be the lending of credibility to an area dominated by first-time CEOs running fledgling companies. Amazon’s approach could also help to distinguish NFTs from cryptocurrency, argues Broome, who worked as a successful Hollywood producer before co-founding a blockchain startup in 2021. “The only way to grow the web3 gaming and NFT, digital collectibles space is to bring the masses in,” Broome said. “Amazon’s rumored marketplace … will help to differentiate a crypto exchange like FTX, from a blockchain web3 project.”
Source: TheBlock
