Amazon to Launch NFT Marketplace Next Month, Offering Digital Collectibles Tied to Real-World Assets

NFTs Tied to Real-World Assets

Amazon is reportedly launching an NFT (non-fungible token) marketplace on April 24th, which is seen as a significant move in the crypto space. The platform will allow customers to purchase NFTs tied to real-world assets without the need for crypto wallets. The launch will feature 15 NFT collections, which will be available on Amazon’s website and can be seen by clicking the “Amazon Digital Marketplace” tab. The company will alert US Amazon Prime customers of the digital collectibles plan once it goes live.

Amazon as a Trusted Intermediary

This move is significant for two reasons, according to Christopher Alexander, chief communications officer for Liberty Blockchain. Firstly, Amazon is a well-known and trusted brand with over 200 million Prime members, which can serve as a trusted intermediary for customers experiencing Web3 for the first time. Secondly, Amazon’s entry into NFTs brings significant lobbying heft to a crypto industry fighting on multiple fronts.

Momentum for Non-Crypto Firms to Experiment with NFTs

The NFT market has taken a beating since the collapse of TerraUSD/Luna in May 2022 and the FTX debacle, but it seems to be rebounding. DappRadar noted in its February industry report that NFT trading volume spiked to $2 billion for the first time since last May, up 117% from the previous month, largely driven by Blur, the zero-fee marketplace launched last October.

Room for Competition in the Nascent NFT Space

Amazon’s NFT marketplace will likely differ markedly from what OpenSea has on offer, according to Anthony Georgiades, co-founder of Pastel Network. Amazon may try to incorporate NFT tech into their current business operations, perhaps tying them to the sale of physical goods. It’s still too early to tell what is planned, but it is exciting to see a Web2 giant dipping its toes into the crypto world.

Amazon’s Distribution Network as an Advantage in NFT Marketplace

Although it remains to be seen whether Amazon’s NFT marketplace will compete with OpenSea, they could co-exist, according to Mo Shaikh, co-founder and CEO of Aptos Labs. What may work in Amazon’s favor is the retail giant’s distribution network, which experts suggest could provide real utility for NFTs, something other marketplaces and infrastructure can’t handle. The launch of Amazon’s NFT marketplace is expected to help familiarize the company’s vast customer base with Web3 technology, which could drive further adoption of NFTs and crypto more broadly.