Amazon is set to launch its own NFT marketplace, as it continues to broaden its e-commerce empire.
NFTs, or non-fungible tokens, are digital assets that are based on blockchain technology. What makes them non-fungible is that they cannot be exchanged or traded on an equal basis. In contrast, cryptocurrency can be traded for one another, making them fungible.
Still In Development
Amazon was initially planning to launch its NFT marketplace last year, however, the collapse of FTX delayed the launch.
Although some details are yet to be fleshed out, what is known is that the launch is set for April 2023 and Amazon will initially offer 15 NFT collections for U.S. customers to start. Consumers will be able to purchase these digital collectibles via a credit or debit card using their Amazon account.
This will also give consumers, who don’t have a digital wallet, to the ability to purchase an NFT without having to purchase cryptocurrencies.
Post-launch, Amazon customers will be able to purchase fashion-oriented NFTs that are linked to physical clothing, Yahoo Finance reports. There are also plans to enable customers to play crypto games in exchange for free NFTs. A major focus is being placed on blockchain-based gaming and other NFT applications.
How Amazon Digital Marketplace May Stack Up to Competitors
Joining the ranks of Meta and Google, Amazon has partnered with Ava Labs in order to speed up adoption of blockchain technology. With its large customer base, Amazon is sure to inflict robust competition to existing NFT marketplace players such as OpenSea and Rarible.
Safety and liabilities continue to be critical issues that must be addressed to see how NFT platforms fare over time.
One thing is certain, Amazon’s foray into NFTs means it is well on its way to entering the Web3 ecosystem.