Could Amazon Be Getting Into Cryptocurrency? | Investopedia
On October 31, Amazon (AMZN) registered three different domain names relating to digital currencies. (See more: Amazon Acquires Cryptocurrency-Related Domains.) The domain names are amazonethereum.com, amazoncryptocurrency.com, and amazoncryptocurrencies.com, according to a report by Coin Telegraph.
In the wake of the news, investors and digital currency analysts are speculating that the e-commerce titan may be making inroads into the cryptocurrency craze. Will Amazon launch its own cryptocurrency? Or do the domains suggest something else?
It's important to note that this is not the first time Amazon has been the topic of a rumor regarding digital currencies. Investors had previously speculated that the company would accept digital currency payments through its e-commerce platform. (See more: Is Amazon Planning to Accept Bitcoin Payments?)
Although bitcoin has grown tremendously in value and interest level among investors, many brick-and-mortar stores and online retailers have been slow to include it as a means of payment. Amazon's decision to adopt bitcoin payments would likely exert a significant influence. However, the company has made no formal indications that it will do so.
Launching a New Cryptocurrency?
Bolstered by the success of top currencies like bitcoin and ethereum, many companies are considering creating their own digital tokens. One result of this phenomenon has been the ICO craze, which has dominated the cryptocurrency space in the past several months.
Companies endeavoring to release their own tokens to the broader public have taken to selling them in an "initial coin offering," similar in some ways to an IPO. They then use the funds raised through the sale to formally launch or increase their activity.
Could Amazon be plotting its own cryptocurrency? Considering the number of new digital currencies to hit the field each week, this is not outside of the realm of possibility. It's worth noting, though, that Amazon already owns the domain "amazonbitcoin.com," and the domain names referring to pre-existing digital currencies might point in another direction.
As of this writing, there has been no formal indication by the company that a new cryptocurrency is on its way, although a launch of this type would have a dramatic impact on the market.
Regardless of what Amazon's plans are for its new domains, the suggestion that the company is receptive to getting involved in the digital currency space may be enough to inspire investors to place their assets there. The support of a corporate juggernaut like Amazon could take the cryptocurrency space from a hot trend to a long-term fixture of the investment and business worlds.