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What are the factors that give Amazon the edge over the other FAAMG members in the crypto race?
A recent Amazon advert has got the crypto world buzzing. The retailer advertised for a lead position in digital currencies and blockchain. The news excited crypto enthusiasts who couldn’t stop speculating on the move’s meaning. Some went as far as suggesting that Amazon teased its entry into the crypto space.
This development saw the firm scramble for a clarification. It refuted that it was entering the crypto sector. But Its denial did little to quell the growing speculation. If anything, it left more answers than questions. Chief among these questions is what the idea means for Amazon’s crypto interests.
It poses questions about the retailer’s crypto push compared to other FAAMG members. The other members of the quintet are FacebookMicrosoft. Could some factors give Amazon the advantage over them in their bid to launch crypto tokens? This article assesses why Amazon could become the first of the FAAMG to launch a crypto token.
How Could Amazon Become the First FAAMG to Issue a Crypto Token?
The growth of crypto payments has sent many industry players back to the drawing board. They’ve had to reconsider placing cryptocurrencies in their operations. The FAAMG quintet hasn’t lagged in this either. That said, in the crypto adoption race, Amazon seems to have the edge over the other four. Here are the top reasons why it could pioneer in launching a crypto token.
It Has a Functioning Digital Asset Already
Amazon isn’t a newbie in the crypto sector. Its interest in the area goes back to 2013. Then, the company launched AmazonCoins, a virtual currency used by its customers. Can use them to buy Kindle-based apps and games.
The token goes for about $0.01 and has wide acceptance within Amazon’s ecosystem. Should the company decide to issue a native token, it already has a prototype to work with. Developing a token is a time-consuming venture. So since Amazon has a functional currency in use, transforming it into a token will be effortless. Unlike the rest, Amazon wouldn’t have to start from scratch.
It’s a Trusted Global Brand
According to a recent Morning Consult study, Amazon is the fifth most trusted brand in the world. Although Google and Microsoft ranked ahead, they’ve faced accusations of data mining. Facebook also continues to face the same allegations.
Amazon may also mine data, but in contrast, it allows users greater freedom in what they’d want to share. One of the cryptos’ selling points is confidentiality. On this score, it’s easy to see why the public would accept Amazon’s token compared to the rest.
Its AWS Platform is a Key Player in the Crypto Space
Another factor playing to Amazon’s advantage is its Web Service (AWS). AWS is the firm’s computing arm providing BC service known as the managed blockchain. Many global firms have been renting access to the network rather than building their own.
AWS is a perfect fit for launching the Amazon token should the company decide to do so. For one, it’s a proven BC system backed by the trust of thousands of global firms. So, it makes total sense that deploying a crypto token would be an easy thing to do.
Amazon’s Deep Involvement with Ethereum
The firm is already a key player in the crypto universe. Amazon supports a quarter of the global (ETH) workload. This is a justifiable fact as ETH is second only to (BTC) in market share. But ETH is more than a currency; it’s a whole financial ecosystem.
Other players in the industry are still developing their BCs. ETH is evolving to include more functionalities. And with it, so has AWS’ significance within the crypto space. When Amazon launches its token, it’ll use AWS’ experience and reputation. It will thus reach the masses.
Amazon is Investing in its Blockchain and Crypto Teams
Amazon’s advert came out as a dead giveaway on its crypto project. Why else would they want to hire for such a position? Again, it follows CoinDesk’s February report on Amazon’s “digital currency” project in Mexico. Furthermore, the firm has in the recent past announced over 70 openings for BC experts. What’s clear is that Amazon is beefing up its BC and crypto teams. It’s doing so to make its presence in the crypto space permanent.
It Holds Patents to Crypto Domains
In 2017, Amazon acquired three crypto-related domains. These are:
- AmazonEthereum.com
- AmazonCryptocurrency.com
- AmazonCryptocurrencies.com
It has also indicated an interest in Proof of Work and Merkle Trees cryptosystems. The move gives it a head start over the other four.
Amazon Has an Extensive Network of Loyal Customers
Statista reports by Q1 2021, Prime – its premium membership platform -had 200 million members. The membership renews at $119 annually. Members enjoy certain privileges from the retailer. Besides their loyalty, prime members are early adopters. Thus, they will readily embrace an Amazon token upon launch.
It Has Always Been an Industry Disruptor
Amazon has a reputation for disrupting industries. And AWS has enabled firms to cut third parties from their functions. There’s no reason why it can’t use the platform for its crypto offering.
