Amazon to launch NFT marketplace next month, what can we expect?
Amazon is set to launch its own NFT marketplace next month, with the option of having digital collectibles linked to physical goods delivered to customers’ doorsteps, according reports.
The details so far state that the marketplace will have 15 NFT collections available on launch for US-based customers, before expanding worldwide.
NFT aficionados will be able to purchase the digital collectibles with their own Amazon (AMZN) account via debit or credit cards.
This will allow those who do not have access to a crypto wallet, such as Metamask, the ability to buy NFTs without having to purchase cryptocurrencies like ethereum (ETH-USD).
According to reports the Amazon NFT marketplace could be called either 'Amazon NFT Marketplace' or 'Amazon Digital Marketplace'.
Web3 media outlet The Big Whale reported a date of April 24 for the launch.
NFTs linked to physical goods delivered to doorsteps
After the initiative is launched, Amazon shoppers will be able to purchase fashion-oriented NFTs that are linked to physical clothing, such as jeans, trainers and sweatshirts, according to a report.
These NFTs will be delivered to customer NFT accounts whilst the physical piece of clothing is being delivered to customer doorsteps.
One clothing company that has been at the forefront of linking NFTs with their physical produce is Nike.
Nike (NKE) acquired the virtual assets 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 range that is linked to the apparel retailer's 'real-world' Dunk sneakers.
Amazon NFT initiative has been in development for months
Jeff Bezos' tech and online retail multinational has been taking progressive steps towards incorporating more Web3 features into its platforms.
Back in January, crypto news outlet Blockworks reported that the world's largest retailer was launching a digital assets enterprise 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 web3 firm Ava Labs in a bid to accelerate the adoption of blockchain technology.
We’re joining forces with @Amazon to help enterprises and governments build compliant blockchain solutions. #AWS makes it easier to launch and manage #Avalanche nodes, giving the network more strength and flexibility for developers.https://t.co/vgabB5c6Ya
— Ava Labs 🔺 (@avalabsofficial) January 11, 2023
NFT market slump and the FTX collapse
The launch of digital collectible services on Amazon was delayed following the collapse of Bahamian cryptocurrency exchange FTX in November 2022.
After the collapse of FTX the entire crypto ecosystem took a critical hit to its reputation, and the interest from web2 firms and retails in launching NFT marketplaces almost evaporated.
However, the interest in NFTs amongst consumers has been slowly picking up pace again. The market for digital collectibles has shown signs of recovery since the beginning of 2023, according to data from DappRadar.
A recent report from DappRadar showed healthier figures for the NFT market as a whole. In January NFT trading volume stood at $946m, 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 is now running its own NFT-based metaverse event in The Sandbox. The Italian fashion label has created the first significant virtual environment on the metaverse platform that incorporates the brand's NFTs, called 'Gucci Vault Land'.
What are NFTs?
NFT stands for 'non-fungible token', and can usually be purchased on NFT marketplaces such as OpenSea.
They are unique digital assets that exist on a blockchain, which is a decentralised digital ledger that records transactions.
Think of NFTs as digital collectibles or artwork that are unique and can't be replicated. They can be anything from a digital image or video to a tweet or a music album, or even a digital piece of clothing that can be used within a virtual world.
When someone purchases an NFT, they own a digital certificate of ownership that verifies that they own the original, one-of-a-kind version of the asset.
This certificate is stored on the blockchain and can't be replicated or altered.
NFTs have become popular in recent years as a way for creators and artists to sell and monetise 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 have yet to reply with comment.
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