Tech powerhouse Amazon plans to launch NFTs that grant ownership of physical goods to improve the customer experience and attract more buyers.
Amazon (NASDAQ: AMZN) is developing an initiative focused on its non-fungible tokens (NFTs) that would improve the customer experience. The e-commerce giant is reportedly looking to link ownership of NFTs to physical goods delivered to customers. This development marks a significant improvement on Amazon’s initial efforts to launch a digital asset company.
The Amazon NFT platform could go live on April 24, and the company looks to notify all Prime customers in the US once it does.
By linking digital assets to real-life items, Amazon is looking to stoke further interest in NFTs as viable assets worth owning. For example, shoppers can purchase a fashion-focused NFT tied to an item of clothing and pay with a credit card. The same concept also applies to all other categories of items available for sale.
Amazon CEO weighs in on the company’s projected NFTs
Speaking about the possibilities that abound for the NFT scheme from a broader point of view, Amazon CEO Andy Jassy said:
“I expect NFTs to continue to grow very significantly. We’re probably not close to adding cryptocurrency as a payment mechanism in our retail business, but I think over time you’ll see cryptocurrency get bigger and Amazon may integrate cryptocurrency payments.”
With Amazon’s large customer base, an introduction like this NFT initiative could reach unprecedented magnitudes. An inside source also touched on the projected scale of the initiative and its feasibility, saying:
“We knew it was possible, but now it looks like it’s really happening. That will affect existing players in the space, if they execute and do this right and are smart about it.”
However, NFT’s release timing still seems to be in a constant state of flux despite the April release date. Meanwhile, two other inside sources say that Amazon will launch the initiative in May.
The supporting blockchain technology for the NFT agenda remains unclear, and Amazon is considering various options. Reports indicate that Amazon representatives working on the project have already communicated with a large number of blockchain projects. These include Tier 1 blockchains, blockchain-minded gaming platforms, and other startups and established companies.
Amazon is looking to create a private blockchain for its NFT initiative, though it is unclear how this goal will come to fruition. Over the past year, the multinational technology company has become increasingly interested in Web3 technologies.
NFT Documentary
Last December, Amazon revealed a new NFT documentary featuring artists, collectors, and industry insiders from around the world. In the documentary, these inhabitants share their experiences with digital assets and the positive impact of the mergers between technology and art.
Entitled ‘NFTMe’, the documentary has seen more than 50 guests in its inaugural season, including Peter Rafelson and Cheryl Douglas.
Amazon is also funding other popular NFT platforms in addition to its own projects. For example, the tech giant played a key investment role in the $20 million Series A financing of animation studio NFT Superplastic.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify the crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
