Speculation as to Amazon developing their very own cryptocurrency first began in earnest late last year, with reports of several domain-name purchases. In February CNBC released the results of a poll that showed 58% of Amazon Prime customers would gladly use that company’s crypto. And then… nothing!
In late 2017, CNBC reported that Amazon had purchased a variety of crypto-related domain names including amazonethereum.com, amazoncryptocurrency.com, and amazoncryptocurrencies.com.
Back in February, CNBC published the results of a poll carried out by LendEDU – possibly at the behest of online retail colossus Amazon.com. This poll and its results sent the crypto world into a frenzy of speculation, much of which remains to this day.
Jeff Bezos Knows Crypto
Jeff Bezos, the Amazon founder and CEO and the world’s richest man ($142.5 billion) had clearly been paying attention to the cryptocurrency boom of 2017, and figured that creating Amazon’s own crypto, utilizing the very latest in blockchain technology, would make them instant major players in what was becoming a highly lucrative industry.
What’s more, the blockchain’s capacity for handling large numbers of transactions easily, economically, and much quicker than anything else was very appealing to a company that averages 306 transactions per second and 26.5 million every day.
2018 LendEDU Amazon Crypto Poll
In February 2018, LendEDU surveyed 1,000 Amazon customers, asking them multiple questions regarding banking, loans and mortgages. Tellingly, it was the cryptocurrency related question which drew the most positive feedback:
If offered, would you be open to the idea of using an Amazon-created cryptocurrency for future purchases on Amazon.com?
- 51.70% of respondents answered “yes” (58.27%)
- 21.90% of respondents answered “no” (18.30%)
- 26.40% of respondents answered “unsure” (23.43%)
With over 50% of Amazon customers – even more among Amazon Prime users – seemingly happy to make their purchases using Amazon-Coin, the connotations were mindboggling. Amazon doesn’t currently accept payments in cryptocurrency, so they would have exclusivity to their own market.
If 50% of Amazon customers begin using the company’s own crypto for purchases, potentially, Amazon-Coin could be used in 12.5 million transactions daily. The world’s top-two cryptocurrencies are Bitcoin and Ethereum.
Bitcoin currently has an average of 200,000 transactions per day, while Ethereum average 750,000 daily transactions, a combined total of less than a million. Theoretically, if Amazon-Coin were to reach its full potential, it could be involved in more daily transactions than the other 1,600 cryptocurrencies – combined.
What’s Happened With Amazon-Coin Post LendEDU Poll?
In the months since the domain-name purchases and the LendEDU poll , there has been much speculation as to Amazon’s intentions. While the obvious reason for such purchases and such an attention-grabbing poll (if indeed Amazon were behind it) was a potential Amazon cryptocurrency, some experts believed it was more likely Amazon were looking at setting up their own crypto exchange platform, possibly a rival to Binance.
For example, Maj Soueidan, co-founder of GeoInvesting recently had this to say:
“When I took one look at these domain names, that is how they read to me. What would be the point of going out in registering a domain name like these if you were simply going to use one of the digital currencies on the website as a method of payment? A domain name is a placeholder for a bigger project than that and, the thought of Amazon exchanges was literally the first thing that popped into my mind when I saw the domain names. I literally said out loud ‘they’re going to set up exchanges’. ”
The bottom line is whatever their intentions, Amazon are playing their cards close to their digital chest, keeping their cyber-powder dry, and giving literally nothing away. Has Bezos been put off by the precarious nature of the crypto landscape and market in 2018? Is he waiting to see the impending SEC regulations and how they will affect the market?
Surely the ideal time to make a maximum impact on a market is when it is experiencing a lull, as cryptocurrency is in June 2018, as opposed to when the market is on a financial high, as it was in December 2017. Jeff Bezos didn’t become the richest man in history by making the wrong choices, so if Amazon are indeed set to enter the crypto market, he’ll know exactly when to “unleash the beast!” for maximum effect. It’s going to be fun!