E-commerce giant Amazon could finally jump onto the Web 3.0 space, after shunning the sector for long due to its volatile nature and legitimacy issues. Amazon is reportedly set to launch an NFT initiative in April that would be closely integrated with its main platform.
According to some reports, Amazon is introducing a gaming-focussed NFT enterprise and one example of the NFT scheme that Amazon is currently developing is allowing its customers to play blockchain-based games and earn NFT as rewards. There will also be free NFT that will be up for grabs.
Experts reckon that the global retail giant’s entry into the Web 3.0 space could be a big one for crypto for a number of reasons. People who were waiting at the fringes could now well be convinced to take the plunge in crypto, following Amazon’s entry.
As mentioned earlier, Amazon has been staying away from crypto and NFT for the longest time due to legitimacy issues and also the volatile nature of the crypto market. Some of the executives at Amazon are leading the NFT push.
Initially, the plan was to carry out at least one NFT drop with an artist but that plan has advanced significantly since then. Some sources claimed that the platform may not be operated on the company’s own Amazon Web Services (AWS). Instead, it will operate out of the main Amazon platform itself.
Although there is no concrete detail available about Amazon’s plans in the crypto and NFT sector, Amazon’s CEO Andy Jassy had suggested in April that the online retail giant may enter the crypto and NFT space. At that time, he said although the company was not close to adding crypto as a payment mechanism in its retail business, it was possible to see crypto payments over a period of time.
Several globally renowned and high-end brands have linked their products and brands to NFT in order to lure Web 3.0 enthusiasts. A total of US $260 million has collectively been bagged by high-end luxury brands including Nike, Gucci, Dolce & Gabbana with the sale of their NFT art pieces, according to some reports published in August.
Industry experts predicted that NFT, that are compatible in the Metaverse, could be the next advancement that global brands could take up in order to engage with the native customers of Web 3.0.
Amazon, being a seller of thousands of local and international brands, could now be seeing NFT as a way to multiply its own revenue. Amazon’s entry could single-handedly drive a mass engagement of people with digital assets, especially among its huge base of customers spread across the world.
Amazon’s command in the e-commerce sector essentially means the company has a firm grasp on the ins and outs of the online marketplaces and itself is a big brand name. The NFT industry has been on a declining trend since its high point in the second half of 2021.
The news of a giant corporation like Amazon entering the space could significantly help in turning the fortunes of the industry. However, the future growth of the sector would still largely depend on the actual cases of NFT.
