Amazon Moves Into Web3. But Is the World Ready for Amazon Web3?
$Amazon(AMZN.US$ is rumored to be unveiling a Web3 initiative, according to a report by Blockworks. What this project will look like when it materializes is unclear: It might involve gaming, an NFT marketplace or something in between.
Either the regulatory complexity and uncertainty of doing this will kill the project before it begins, or Amazon has the size and scale to "make the market" on this and bring the Web3 economy into the mainstream.
Flying Blind?
Generally speaking, major blue chip corporations have avoided Web3 because of legal uncertainties. Sure, there have been efforts by payment companies like Visa and Mastercard to integrate stablecoins into their networks, many crypto nodes are hosted on Amazon’s cloud service AWS, and big tech and TradFi firms are regular investors in the crypto economy.
But this doesn’t mean they are stakeholders in the Web3 economy, embracing the ethos of decentralized ownership. Regulatory uncertainty and a lack of clarity interferes. Amazon’s efforts are potentially transformational if it can succeed, which will mean addressing the regulatory issues.
Either the regulatory complexity and uncertainty of doing this will kill the project before it begins, or Amazon has the size and scale to "make the market" on this and bring the Web3 economy into the mainstream.
Flying Blind?
Generally speaking, major blue chip corporations have avoided Web3 because of legal uncertainties. Sure, there have been efforts by payment companies like Visa and Mastercard to integrate stablecoins into their networks, many crypto nodes are hosted on Amazon’s cloud service AWS, and big tech and TradFi firms are regular investors in the crypto economy.
But this doesn’t mean they are stakeholders in the Web3 economy, embracing the ethos of decentralized ownership. Regulatory uncertainty and a lack of clarity interferes. Amazon’s efforts are potentially transformational if it can succeed, which will mean addressing the regulatory issues.
All this isn’t to say that Amazon faces an impossible task.
The company has access to almost infinite legal resources and compliance teams to create a version of Web3 that doesn’t run afoul of the law – despite there being limited legal guidance available and existing paradigms being regulatory and compliance hellscapes.
Some might argue, citing a declining market for NFTs and the overall bear sentiment for crypto, that this is the time to do it. But entering at the bottom of the market can also create market momentum, and there’s nobody like Amazon with its scale in the Web2 world.
Amazon entering this market would certainly legitimize it in the eyes of many, and it would be an important step in creating an institutional-grade asset out of NFTs. But first, they need to push through the regulatory challenges.
The company has access to almost infinite legal resources and compliance teams to create a version of Web3 that doesn’t run afoul of the law – despite there being limited legal guidance available and existing paradigms being regulatory and compliance hellscapes.
Some might argue, citing a declining market for NFTs and the overall bear sentiment for crypto, that this is the time to do it. But entering at the bottom of the market can also create market momentum, and there’s nobody like Amazon with its scale in the Web2 world.
Amazon entering this market would certainly legitimize it in the eyes of many, and it would be an important step in creating an institutional-grade asset out of NFTs. But first, they need to push through the regulatory challenges.
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71403390 : Will fail just like ftx being the “exchange” for crypto. Sbf paid for by others and failed just like the next try from the old powers will fail. They don’t know how to do something new anymore. They just act like a parasites. I hope they fail while $GameStop (GME.US)$ succeeds.
MeltyyOP 103948150: Yes! I recently got a new kitten! I now have two