Amazon Launches NFT Marketplace Next Month, What Can We Expect?
Amazon is to launch its own NFT marketplace next month, with the option to have digital collectibles linked to physical goods delivered to customers’ doorsteps, according to reports.
The details so far say the marketplace will have 15 NFT collections available at launch for US-based customers, before expanding worldwide.
NFT enthusiasts will be able to purchase the digital collectibles with their own Amazon account (AMZN) via debit or credit card.
This will allow those who do not have access to a crypto wallet, such as Metamask, the ability to purchase NFTs without having to purchase cryptocurrencies such as ethereum (ETH-USD).
According to reports, the Amazon NFT marketplace may be called either ‘Amazon NFT Marketplace’ or ‘Amazon Digital Marketplace’.
Web3 media outlet The Big Whale reported a launch date of April 24.
NFTs linked to physical goods delivered at the doorstep
After the initiative launches, Amazon customers will be able to purchase fashion-oriented NFTs that are tied to physical clothing, such as jeans, sneakers and sweatshirts, according to a report.
These NFTs will be delivered to customers’ NFT accounts while the physical garment is delivered to the customer’s doorstep.
One apparel company that has been at the forefront of connecting NFTs with their physical products is Nike.
Nike (NKE) acquired virtual asset company RTFKT in 2021, which was integrated into the new “Nike Virtual Studio” to unleash a series of Nike-branded NFTs.
An example of this is Nike’s Dunk Genesis CryptoKicks NFT line which is tied to the apparel retailer’s “real life” Dunk sneakers.
The Amazon NFT initiative has been in development for several months
Jeff Bezos’ multinational technology and online retail business has taken progressive steps toward incorporating more Web3 capabilities into its platforms.
Back in January, crypto news outlet Blockworks reported that the world’s largest retailer launched a digital asset business involving NFTs.
According to the January report, four sources told Blockwork’s that an Amazon NFT initiative is expected to be made available to consumers worldwide in the spring.
In the same month, Amazon Web Services (AWS) partnered with the web3 company Ava Labs in an effort to accelerate the adoption of blockchain technology.
NFT market decline and FTX collapse
The launch of digital aggregator services on Amazon was delayed following the November 2022 collapse of Bahamian cryptocurrency exchange FTX.
After the collapse of FTX, the entire crypto-ecosystem took a critical blow to its reputation, and the interest of web2 firms and retailers to launch NFT marketplaces almost disappeared.
However, consumer interest in NFTs has slowly picked up again. The digital collectibles market has shown signs of improvement since the beginning of 2023, according to data from DappRadar.
A recent report from DappRadar showed healthier numbers for the NFT market as a whole. In January, NFT trading volume was $946 million, up 38% from December 2022.
Companies such as Gucci, Nike and McDonald’s (MCD) are developing digital collectibles as a promotional strategy to increase interest in their offerings.
Gucci now runs its own NFT-based metaverse event in The Sandbox. The Italian fashion brand has created the first significant virtual environment on the metaverse platform containing the brand’s NFTs, called “Gucci Vault Land”.
What are NFTs?
NFT stands for ‘non-fungible token’, and can usually be bought on NFT marketplaces such as OpenSea.
They are unique digital assets that exist on a blockchain, which is a decentralized digital ledger that records transactions.
Think of NFTs as digital collectibles or works of art that are unique and cannot be replicated. They can be anything from a digital photo or video to a tweet or a music album, or even a digital article of clothing that can be worn in a virtual world.
When someone buys an NFT, they own a digital proof of ownership that confirms they own the original, unique version of the asset.
This certificate is stored on the blockchain and cannot be replicated or changed.
NFTs have become popular in recent years as a way for creators and artists to sell and monetize their digital creations.
They also provide collectors with a way to own and invest in unique digital assets.
Amazon has been contacted by Yahoo Finance UK but has yet to respond for comment.
See: Ukraine buys military equipment with crypto | Crypto Mile
