Amazon Gears to Enter the NFT World

Amazon, the world’s largest online retailer, is reportedly planning to venture into the NFT market in the spring of 2023. The company will concentrate its efforts on developing blockchain-based games that award players using NFTs. In the same vein, the entire scope of Amazon’s Web3 aspirations remains unknown. That said, the company’s involvement in the Web3 ecosystem could be a game-changer for the appeal and growth of the sector.

Amazon’s approach to NFTand its potential impact on the sector

According to sources, rather than using Amazon’s well-known web hosting service, Amazon Web Services (AWS), the platform will operate out of the main Amazon platform itself. Even while AWS occasionally advertises positions for developers and engineers in the Web3 space, it is not widely known for its forays into the crypto and blockchain industries. Notably, AWS recently signed a cooperation deal with Ava Labs, the company behind the Avalanche blockchain. That could be a sign of things to come.

Amazon’scommanding position in the e-commerce sector means that the company has a firm grasp on the ins and outs of online marketplaces. In addition, it has a big brand name behind it. The NFT ecosystem, however, is unique in that it serves a niche product and demographic of consumers. Also, since established companies like OpenSea and Rarible dominate the NFT market, it may not be smooth sailing for Amazon in this territory.

As of now, it is not known if Amazon has any plans to establish an NFT marketplace. However, the industry could react strongly to any efforts in that direction by Amazon. In the recent past, company CEO Andy Jassy has been quoted as saying that the company could consider adding cryptocurrencies as payment. However, the prospect remains farfetched for now. The NFT industry has been on a downward spiral since its high point in H2 of 2021. Therefore, news of interest by a mega-corporation such as Amazon is most welcome. However, the future growth of the sector will largely depend on NFT use cases.