Amazon is allegedly launching an NFT marketplace next month, largely applauded in the industry as it cements the growing acceptance of digital assets. The initiative resembles other prominent corporations dabbling in the industry, such as GameStop and Reddit.
Whereas Amazon is acknowledged for following in the footsteps of other prominent platforms, Meta, formerly Facebook, is taking a step back less than a year after pushing to accept digital collectibles on its platforms. According to an announcement on March 14, 2023, Meta intends to phase off NFT support on its platforms, Instagram and Facebook.
So while Meta opts out of NFTs, will Amazon’s plan to dive in impact the marketplace? Or will it be another platform that dipped its feet in the NFT world and went back?
What Do Experts Say?
According to Christopher Alexander, Liberty Blockchain’s chief communications officer, Amazon’s involvement in NFTs is noteworthy for two reasons.
“The first is tied to the brand,” he explained. “Amazon is well-known and trusted by more than 200 million Prime Members. Amazon can act as a trustworthy gateway for first-time Web3 users. Second, Amazon provides enormous lobbying clout to a crypto business waging many battles on Capitol Hill.”
GameStop and Reddit are two other companies that have entered the market. In October 2022, GameStop and ImmutableX Pty Limited created an NFT marketplace. According to a Hype Partners tweet, Reddit began collecting in July of last year and has already onboarded approximately 6.9 million visitors to Web3.
Furthermore, CJ Reim, a contributor at Core DAO, also stated that Amazon’s announcement shows how there is still momentum for other non-crypto technology corporations to experiment with NFTs and crypto in general.
Today, if you look at the NFT world, the NFT space has taken a beating — just like the crypto market in general — since the May 2022 collapse of TerraUSD/Luna, the accompanying platform collapses, and the famed FTX incident.
Yet, it appears to be on the mend. Therefore, it remains to be seen whether Amazon will compete with “pure” NFT marketplaces like OpenSea, although analysts think there is an opportunity for competition in a relatively new industry.
More About Amazon’s Marketplace:
Amazon consumers can purchase NFTs linked to real-world assets, according to Blockworks. The business will notify US Amazon Prime users when the digital collectibles strategy goes live.
The marketplace, expected to launch on April 24, will initially offer 15 NFT collections, available on Amazon’s website and can be viewed by clicking the “Amazon Digital Marketplace” option, according to Coingape. Consumers will not require crypto wallets to purchase NFTs from Amazon.