Byron Gilliam

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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Growth in revenues cannot exceed growth in people who can execute and sustain that growth.”



— Packard’s Law
</blockquote>



Arboreal ecosystems operate on a brutal but necessary paradox: For a forest to grow, it occasionally needs to burn.



Without these seemingly-apocalyptic conflagrations, the forest floor becomes choked with underbrush, preventing the new growth needed for regeneration and long-term viability.



Dion Lim <a href="https://ceodinner.substack.com/p/the-ai-wildfire-is-coming-its-going?utm_source=share&amp;utm_medium=android&amp;r=3qcul&amp;triedRedirect=true">says</a> this is how technology cycles work, too.



“The first web cycle,” he explains, “burned through dot-com exuberance and left behind Google, Amazon, eBay, and PayPal: the hardy survivors of Web 1.0. The next cycle, driven by social and mobile, burned again in 2008-2009, clearing the underbrush for Facebook, Airbnb, Uber, and the offspring of Y Combinator.”



The speculative frenzy of investment bubbles burns off non-productive capital much like a wildfire consumes dense fuel — and the inevitable crash clears the way for the market’s resources to be reallocated.



Without these seemingly apocalyptic market conflagrations, a permanent underbrush of failed startups would drain the technology sector of the resources it needs to grow.



This might be why crypto feels so left behind this year: A tangled undergrowth of big projects that never seem to die has been hoarding the resources the ecosystem needs to evolve.&nbsp;



In the real economy, labor is constantly being reallocated from failed companies to successful or promising ones: “Many of Google’s best early employees,” Lim notes, “were founders or early employees of failed Web 1.0 startups.”



This seems to happen less in crypto.



To cite just one example, the Polkadot blockchain — which collected <a href="https://tokenterminal.com/explorer/projects/polkadot/metrics/fees?granularity=day&amp;interval=7d">$72 of fees</a> yesterday — is <a href="https://www.developerreport.com/">supported</a> by 482 full-time developers and 1,404 contributors.



If a project like that — in its sixth year of operations — was funded by stock and not tokens, I’m guessing those resources would have been released back into the ecosystem by now.



This is a problem because <a href="https://www.jimcollins.com/article_topics/articles/the-timeless-physics.html">Packard’s Law</a> suggests that if the scarce resource of crypto developers is not being redistributed to successful projects, crypto will struggle to grow.



Unproductive crypto projects hoard investment resources, too.&nbsp;



Crypto founders are notorious for <a href="https://x.com/hasufl/status/1995417501321040346?s=20">over-raising from investors</a> and living off the proceeds, with no market-imposed urgency to find product market-fit.



For example: One of the original crypto projects, Golem, stockpiled 820,000 ETH in its 2016 ICO, and still held <a href="https://x.com/WuBlockchain/status/1810148153087173023?s=20">231,400</a> of it as recently as last year.



Traditional startup investors expect their capital to be deployed far more quickly than that.&nbsp;



In other cases, projects with inexplicably large market valuations fund themselves seemingly forever by selling their native token out of treasury. Cardano, for example, <a href="https://messari.io/report/state-of-cardano-q3-2025">holds</a> roughly $700 million of its ADA token in treasury, which should keep the project funded approximately forever.



Collectively, crypto protocols are sitting on billions in capital and have little or no incentive to deploy it efficiently — no activist shareholders to placate, corporate raiders to fear or quarterly earnings estimates to meet.



In short, crypto may be too funded to fail.



Ben Thompson has recently articulated a similar fear about traditional tech, worrying that giants like TSMC, Nvidia and Alphabet have become so dominant that the entire ecosystem risks stagnation.



He therefore welcomes the bubble: “What is invigorating or why we should embrace the mania, embrace the bubble, is [that] ‘too-big-to-fail’ was starting to afflict tech as well.”



Thompson notes that the benefit of private enterprise is that &#8220;stupid stuff&#8221; eventually goes out of business. But when companies become entrenched monopolies (or government-backed entities), the stupid stuff doesn’t die. It just becomes over-engineered and inefficient.



He argues we need investment bubbles precisely because they bring risk back into the equation: “You don’t get upside risk without downside risk.”



This might explain why crypto has felt so stagnant this cycle. We have the &#8220;stupid stuff&#8221; — protocols with few users and minimal revenue — but lack the mechanism to make them go out of business.



“Growth becomes difficult when everyone’s roots are tangled,” Lim warns.



Until a forest fire is allowed to burn through the tangled roots of over-funded zombie protocols, the nutrients — capital and developers — will remain trapped, and the next era of growth will remain out of reach.



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amazon

Too funded to fail: Crypto needs a forest fire

Shalini Nagarajan

Immutable has partnered with Amazon Web Services (AWS) to streamline blockchain gaming infrastructure for developers.



Teaming up with AWS allows Immutable to tap into valuable technical resources and support, boosting its capabilities in the blockchain gaming world, and simultaneously driving innovation and growth.



The blockchain gaming company, known for its Ethereum layer-2 scaling solution, will leverage a vast network of potential game studio collaborators through AWS, according to a Tuesday <a href="https://www.immutable.com/blog/immutable-and-amazon-investing-in-the-next-evolution-of-gaming?utm_source=twitter&amp;utm_medium=social&amp;utm_campaign=signup&amp;utm_id=20231011_AWS">announcement</a>.



<a href="https://blockworks.co/tag/immutable">Immutable</a> has joined Amazon&#8217;s Independent Software Vendors (ISV) Accelerate <a href="https://aws.amazon.com/partners/programs/isv-accelerate/">Program</a>, which offers support and advantages to partner with AWS sellers worldwide.



“This will allow Immutable to gain access to expert resources from AWS to help secure prospective customers and ultimately close deals with major game studios from around the world,” Immutable said.



An Immutable spokesperson described the ISV Accelerate Program as “very prestigious,” saying that members need to meet strict industry standards and undergo a thorough evaluation to be accepted.



To work with AWS, Immutable has to meet certain criteria, like signing a non-disclosure agreement, going through a business review and maintaining at least $350,000 in AWS revenue through the partner network over a year.



There&#8217;s typically no direct program fee, but organizations may need to invest in their software solutions on AWS.



“There’s no payment involved on either side,” the spokesperson told Blockworks.&nbsp;



“This is a mutually beneficial collaboration for both Immutable and AWS. Both companies will work together to accelerate the mass adoption and development of Web3 gaming space, both from technical and commercial standpoints,” they added.



Read more: <a href="https://blockworks.co/news/crypto-gaming-web3-argus-labs-web2">Crypto gaming needs to move beyond ‘just having collectibles,’ Argus Labs CEO says</a>



Despite the collaboration, Amazon won’t have exposure to Immutable X&#8217;s native token IMX in any way.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><a href="https://twitter.com/hashtag/Immutable?src=hash&amp;ref_src=twsrc%5Etfw">#Immutable</a> 🤝 <a href="https://twitter.com/amazon?ref_src=twsrc%5Etfw">@amazon</a> Amazon Web Services and Immutable are working together to shape the future of gaming! Through our collaboration with Amazon, we will gain access to a vast pipeline of game studio leads, support for successful deal closures, and up to $100k in AWS cloud… <a href="https://t.co/SX7xfFqrtK">pic.twitter.com/SX7xfFqrtK</a>&mdash; Immutable (@Immutable) <a href="https://twitter.com/Immutable/status/1711865035612733594?ref_src=twsrc%5Etfw">October 10, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Game developers utilizing Immutable will now be able to be part of AWS Activate, a program that provides technical assistance, referral opportunities, up to $100,000 in AWS credits and other resources.



“Today, Web3 <a href="https://blockworks.co/tag/gaming">gaming</a> is one of the fastest growing sub-sectors of the blockchain industry and is already enjoyed by millions of gamers worldwide,” John Kearney, head of sales at AWS, said in a statement.



Read more: <a href="https://blockworks.co/news/dappicom-web3-gaming-nintendo">Press start to disrupt: Dappicom’s bid to reinvent Web3 gaming</a>



AWS is best-known for its versatile cloud computing services. In the context of blockchain gaming, it provides adaptable infrastructure that enables game studios to efficiently manage varying user loads and in-game activities.



Ava Labs struck a partnership with AWS in January in an effort to accelerate blockchain adoption for enterprises, governments and institutions.



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Amazon and Immutable team up to advance Web3 gaming

Ben Strack

Just days ahead of the deadline to file proof of claims against FTX, Amazon’s investment — in a firm the bankrupt exchange reportedly has a stake in — could be a win for its creditors.



Time will tell what sort of impact the investment has for those looking to recover funds lost as a result of the FTX implosion last November.



Amazon is set to invest up to $4 billion in artificial intelligence-focused company Anthropic, the latter firm said in a Monday X <a href="https://twitter.com/AnthropicAI/status/1706202966238318670">post</a>. The agreement is “part of a broader collaboration to develop reliable and high-performing foundation models,” the privately held firm said.&nbsp;



FTX had a $500 million investment in Anthropic, Financial Times <a href="https://www.ft.com/content/db415ae9-938d-45bd-a8b7-510ce2edc943">reported</a> in November.&nbsp;



While it is unclear at what valuation FTX acquired its stake in Anthropic, it is likely that the Amazon investment will raise the company’s valuation and, therefore, raise the value of FTX’s stake, said Jared Gianatasio, a partner at law firm Kleinberg Kaplan.



Kleinberg Kaplan’s clients have included investors with frozen FTX accounts and equity shareholders, as well as crypto firms with indirect exposures to the exchange, executives at the law firm <a href="https://blockworks.co/news/bare-bones-ftx-bankruptcy-filings-are-likely-bad-investor-omen-lawyers-say">previously told Blockworks</a>.&nbsp;



Sunil Kavuri, a trader who <a href="https://www.bbc.com/news/technology-66892685">claims</a> to have lost $2.1 million in the FTX collapse, called the Amazon investment a “massive win” for FTX creditors in a Monday X <a href="https://twitter.com/sunil_trades">post</a>.&nbsp;



“Time will tell whether the impact on <a href="https://blockworks.co/tag/ftx">FTX</a> creditors will be meaningful, but I think what is clear is that the value of this asset has appreciated with the increased focus on AI technology,” Gianatasio told Blockworks. “I think the Amazon investment is an example of that.”&nbsp;



The exchange — currently navigating the bankruptcy process — paused its sale of its stake in Anthropic, sources <a href="https://www.bloomberg.com/news/articles/2023-06-27/bankman-fried-s-ftx-said-to-halt-sale-of-its-stake-in-ai-startup-anthropic?sref=3REHEaVI">told</a> Bloomberg News in June.&nbsp;



John J. Ray III, CEO and chief restructuring officer of FTX, is likely to take a “renewed look” at the stake in an effort to maximize the estate’s assets, Gianatasio said.&nbsp;



“I would not be surprised, however, if the FTX team does not actively look for a sale of this stake and waits to see how its stake in Anthropic may continue to appreciate in value over the coming months given the rising demand and value being placed in AI technology companies,” he added.&nbsp;



A spokesperson for Perella Weinberg Partners, an investment bank working with FTX through bankruptcy, declined to comment. A representative from Sullivan &amp; Cromwell — a law firm also working with the exchange — did not immediately return a request for comment.&nbsp;



Amazon’s investment in Anthropic comes a few days before the Sept. 29 deadline for FTX customers to submit proof of claims — a date set by the US bankruptcy court in June. The company was set to launch a customer claims portal at the time. 



A judge earlier this month approved a plan for FTX to <a href="https://blockworks.co/news/ftx-can-sell-digital-assets-judge">start selling up to $100 million worth of  its digital assets</a> per week. <a href="https://blockworks.co/news/sam-bankman-fried-trial-starting-soon">The trial for former FTX CEO Sam Bankman-Fried</a> is set to begin on Oct. 3.



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Is Amazon’s investment in Anthropic a win for FTX creditors?

Michael Bodley

Amazon is putting the finishing touches to its in-house NFT initiative, according to sources directly familiar with the matter. And at least one document suggests that Amazon is set to feature digital collectibles from top crypto-native creators including Beeple and Pudgy Penguins.



The Amazon NFT marketplace will run on a private and permissioned blockchain controlled by the e-commerce giant, according to a confidential terms of service agreement reviewed by Blockworks. A separate confidential Amazon deck reviewed by Blockworks confirmed the private blockchain, adding that Amazon Web Services (AWS) has been a major contributor to its formation. Neither document could be confirmed as presenting the most current version of Amazon’s plans.



Blockworks<a href="https://blockworks.co/news/amazon-nft-marketplace-web3"> exclusively reported the formation of the initiative</a> in January, <a href="https://blockworks.co/news/amazon-nfts-real-world-assets-token">as well as additional developments on March 3</a>, including the buildout of a private blockchain. Sources say Amazon has shifted its launch timeline several times, and an exact unveil date could not be verified.&nbsp;



The blockchain powering Amazon’s digital collectibles is gas-less and read-only, and imposes strict restrictions on NFT creators, partners and — eventually — Amazon customers after launch, per both documents. Blockworks agreed to not directly quote from either document to protect their provenance.



Amazon has inked a number of partnerships for the launch that have been kept under tight wraps, according to multiple sources. One deck, and a separate source, specified that in addition to day-one partnerships with Beeple and the creators of Pudgy Penguins, Amazon has told product partners that Artifact Labs will be involved, as well as Proof Collective.&nbsp;



Requests for comment to Beeple and Pudgy Penguins creators were not immediately returned. Proof Collective and Artifact Labs likewise did not immediately respond to requests for comment.&nbsp;



Amazon has imposed strict non-disclosure agreements around its dealings with current and potential Web3 partners.



This story is based on interviews with seven people familiar with the platform’s formation. A number of those sources have direct knowledge of the matter, and all seven sources were granted anonymity to candidly discuss sensitive business dealings.&nbsp;



<h2 class="wp-block-heading">Amazon tapping subsidiary streamer Twitch&nbsp;</h2>



Streaming service Twitch — the Amazon.com subsidiary that <a href="https://techcrunch.com/2023/03/20/twitch-says-it-will-lay-off-400-employees/?guccounter=1&amp;guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&amp;guce_referrer_sig=AQAAAC1bIc4byVLDHr0V76JrjXvjT0Ih4CfIF0Qbr_klDToxcVzslr6vOR2urgH_RBRwBMX_NEQbd_aiz9up46AfMFgqe0eZ0V13mONclGUBdCjvkdeg6H30u-mGBXqG7FqACVk6-n7cc-oDyZVehobtWyatFOsgJxPQIsv5WH_iY6o_">reportedly</a> made substantial staff cuts in March — has been tapped to promote the Amazon initiative. Several crypto gaming companies have either discussed or signed partnerships with Amazon to sell NFTs tied to their titles on the marketplace.&nbsp;



Representatives for Twitch did not immediately return a request for comment.



An example: a Web3 game developer signs up with Amazon to sell an NFT to the site’s customers, which then grants the customer access to play the game through Amazon and stream it live on Twitch.&nbsp;



On the fashion front, The Fabricant has agreed to be what two sources categorized as an anchor participant for the marketplace’s fashion vertical. The crypto company has its own partnerships in place with major fashion brands and hosts an NFT <a href="https://www.thefabricant.com/marketplace">marketplace</a> featuring digital collectibles tied to real world experiences.&nbsp;



The Fabricant has its own Discord community while Amazon, according to multiple sources, is planning to support premium Discord memberships for partners. The idea is that brands can hawk an NFT tied to membership to an exclusive Discord community. A spokesperson for The Fabricant declined to comment.



Other planned use cases on the marketplace, per multiple sources include exclusive drops of music, ebooks and movies or tv shows; physical goods shipped after an Amazon customer buys an NFT; access to a private club; or behind the scenes meet and greets with musicians or celebrities.



<h2 class="wp-block-heading">2023 Prime Day NFT promotion</h2>



The company is still planning to heavily promote its hosted digital collectibles on<a href="https://www.amazon.com/primeday"> Prime Day</a>, slated for July 22 and 23, according to multiple sources and one of the decks.That includes pushing messaging to Amazon Prime customers in the US, as previously reported by Blockworks.



All customers will be able to snap up available NFTs just as they would order any other product of Amazon, with supported credit and debit cards or any of the company’s assorted payment options — including using one-click checkout.&nbsp;



Three sources said Amazon has emphasized that its platform would result in Web3 adoption for its 300 million active customers, which would support the idea that the platform is designed for the 300 million or so worldwide customers that Amazon <a href="https://sell.amazon.com/blog/amazon-stats">says</a> it has.&nbsp;



Amazon’s NFT platform has been repeatedly delayed, according to three sources with direct knowledge of the matter who said it was supposed to hit the market as early as the fourth quarter of 2022.



The company has told at least two partners that there are no plans at launch to include multichain functionality that would allow Amazon NFT buyers to move or transact their digital wares off Amazon’s blockchain. Sources offered conflicting accounts of whether there may be future plans for such functionality, which would likely result in a major liquidity boon for the NFT market on different blockchains.



Read more: <a href="https://blockworks.co/news/nft-investing-guide">NFT Investing Explained</a>



“Everything is going to be encouraged to be transactional and transferable,” one source told Blockworks this week. “You can’t build in things like digital identity on Amazon, digital reputation on Amazon.”



<h2 class="wp-block-heading">“Fishing for intelligence”?</h2>



Amazon representatives previously reached out to Americana NFT, a crypto-native startup that <a href="https://www.americana.io/">says</a> it offers a curated marketplace designed to set “the new standard for collecting” premium digital collectibles, according to two sources with direct knowledge of the matter.



The effort didn’t go anywhere for Americana, both sources said, and the startup is said to have thought that its much larger counterpart was fishing for intelligence to build out its own marketplace. Amazon representatives have on several previous occasions met with startups and then “launched competing products,” The Wall Street Journal <a href="https://www.wsj.com/articles/amazon-tech-startup-echo-bezos-alexa-investment-fund-11595520249%5C">reported</a> in July 2020.&nbsp;



A spokesperson for Americana said that “Although we did not have direct discussions with Amazon&#8217;s team, we can verify that we had a meeting with Amazon Ventures in 2022. We look forward to launching our platform in the coming days as we exit beta-testing. We extend our best wishes to Amazon as they launch their new marketplace and become a part of the rapidly expanding Web3 community.”



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Amazon NFT Marketplace Could Feature Beeple, Pudgy Penguins

Amazon is laying the groundwork to give its customers the ability to purchase NFTs tied to real-world assets that are delivered to their doorstep, according to three sources familiar with the matter.



The move is a significant upgrade from the <a href="https://blockworks.co/news/amazon-nft-marketplace-web3">e-commerce giant’s earlier steps in developing its NFT platform</a>, a move previously reported by Blockworks. And the company is planning to notify every Amazon Prime customer — at least in the US — of its digital collectibles initiative once it goes live, an additional two sources said. 



Amazon shoppers, for instance, would be able to purchase a fashion-oriented NFT tied to a pair of jeans — and pay with a credit card, sources said, just as they would with any other Amazon purchase.&nbsp;



The timing of the massive enterprise’s launch still appears to be in flux, although The Big Whale today <a href="https://en.thebigwhale.io/article/nfts-amazon-lancera-sa-plateforme-le-24-avril">reported</a> a date of April 24. An Amazon spokesperson declined to comment. Two sources said a launch would come by this May at the latest.&nbsp;



One mechanism Amazon is considering for spreading the word about its digital collectibles push is sending out an email blast to every US-based Prime subscriber, one source said. An additional two sources said the company is planning to notify its Prime customers in some capacity — either before or when the product goes live.



“They can onboard millions of users without educating people about self-custody, without educating people how to [set up] a MetaMask wallet,” one source said, likening Amazon’s move to <a href="https://blockworks.co/news/starbucks-nfts-like-loyalty-cards">Starbucks loyalty program</a> with Polygon. Amazon currently has approximately 167 million Prime members in the USA.



The back end blockchain technology isn’t clear, and the company appears to have considered a number of different options for integration since it began working on the ambitious initiative.&nbsp;



Representatives for Amazon working on the project have contacted layer-1 blockchains, blockchain gaming companies and other types of both emerging and established digital asset projects. The company has either hired or is looking to hire or partner with dozens of Web3 oriented developers.&nbsp;



Amazon’s intention is to create some type of private blockchain, multiple sources said — adding that it’s not clear whether that could come about via a fork of an existing protocol. Several sources said it’s also not definitive, to their knowledge as of publication, whether an Amazon token would be part of the deal, with one of them dubbing the setup as a “very walled garden.” 



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Amazon NFTs Will Be Tied to Real-world Assets, Token Possible

A developing and deepening partnership between Amazon Web Services (AWS) and Ava Labs is set to assist developers trying to “redefine the internet,” according to AWS’ global head of Web3. 



Jeff Hasselman, who has led AWS’ Web3’s efforts since 2017, said during a Wednesday webinar that he has had conversations over the past two years with some of the world’s largest banks and entertainment companies looking to develop their own Web3 initiatives.



Some need “101 level” education, he said, while others are further along in their digital assets journey. Either way, according to the executive, everyone is looking for the most straightforward path in doing so. 



“We’re starting to see a shift; we’re at an inflection point right now where more and more people are coming in,” Hasselman said. “How do you grab them? And how do you simplify it?”



The webinar comes a few weeks after Ava Labs <a href="https://blockworks.co/news/ava-labs-partnership-with-amazon-cloud-triggers-avax-rally">struck its initial partnership with AWS</a>. That, at the time, was said to be intended as an effort to accelerate blockchain adoption for enterprises, governments and institutions.



Ava Labs created the Avalanche blockchain. AWS offers an infrastructure platform in the cloud that powers hundreds of thousands of businesses in 190 countries.



The joint arrangement differs from the <a href="https://blockworks.co/news/amazon-nft-marketplace-web3">brewing NFT push undertaken by Amazon</a> proper, Blockworks previously reported. That effort, sources then said, is not led by AWS. 



While supply-chain companies are seeking to use blockchain tech for better track-and-trace processes, AWS and Ava Labs executives said during the webinar, potential future government use cases of blockchain include digital identity and on-chain documentation.&nbsp;



<h2 class="wp-block-heading">Ava Labs shifting focus</h2>



Nick Mussallem, head of product at Ava Labs, said the company’s focus has shifted from a single blockchain on which to launch apps, to having technology to allow for a variety of customized blockchains, which it calls subnets.&nbsp;



“All of the orchestration that needs to go underneath the subnet architecture, and all the supporting services that make them work, require a very strong, flexible partner who has high availability, elastic scaling and high throughput systems,” Mussallem said on Wednesday’s webinar. “By deepening our integrations and a lot of the automation on top of AWS, we’re really abstracting a lot of the complexities associated with getting your application to market.”&nbsp;



AWS supports Avalanche’s infrastructure and decentralized application (dapp) ecosystem — including one-click node deployment — through <a href="https://aws.amazon.com/marketplace" target="_blank" rel="noreferrer noopener">AWS Marketplace</a>, according to a <a href="https://medium.com/avalancheavax/ava-labs-and-aws-bring-scalable-blockchain-solutions-to-enterprises-and-governments-295040a34263" target="_blank" rel="noreferrer noopener">January blog post</a>.



Avalanche node operators can run in AWS GovCloud for compliance use cases — deemed a prerequisite for certain enterprises and governments. The partnership also includes Ava Labs joining <a href="https://aws.amazon.com/activate/" target="_blank" rel="noreferrer noopener">AWS Activate</a>, which extends the benefit of AWS credits to builders in the Avalanche ecosystem.



The ultimate goal is allowing individuals and institutions to launch custom subnets “with just a few clicks,” executives said.



Ava Labs President John Wu said a company considering deploying a subnet on Avalanche had many questions — including how to select validators, as well as which wallet to use. &nbsp;



“Between Ava Labs and AWS, we’re going to create this dashboard that allows people to do one click of a subnet and they can choose all their choices based on guidance from previous projects or companies and instantly come up with the answers for them,” Wu said.



An Ava Labs spokesperson declined to comment on potential other future offerings.&nbsp;



This isn’t the first time AWS has <a href="https://www.cnbc.com/2018/05/15/amazon-is-moving-into-blockchain-with-a-new-partnership.html" target="_blank" rel="noreferrer noopener">partnered</a> with a blockchain startup, considering the Amazon division teamed up with Consensys-incubated startup Kaleido in 2018 to offer simplified blockchain platforms.



Amazon Managed Blockchain, the tech giant’s blockchain-focused cloud service, already supports Ethereum and enterprise solution Hyperledger Fabric.



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After AWS Deal With Ava Labs, Web3 at ‘Inflection Point’

Online marketplace eBay is looking to prop up its Web3 ambitions by hiring specialists for its NFT marketplace KnownOrigin.



Those who come onboard will be building an understanding of the market, championing the Web3 sector and improving go-to-market outcomes.&nbsp;



Not all roles require candidates to have crypto-native experiences, but a crypto counsel role is expected to bring legal experience in law related to NFTs, Web3 or blockchain.



Crypto <a href="https://www.linkedin.com/jobs/view/3462689513/" target="_blank" rel="noreferrer noopener">counsel</a> aside, LinkedIn postings from eBay show open spots a head of <a href="https://www.linkedin.com/jobs/view/3434316689/" target="_blank" rel="noreferrer noopener">community</a> at KnownOrigin, content <a href="https://www.linkedin.com/jobs/search/?currentJobId=3393201099&amp;f_C=1481%2C270603%2C3710655%2C6121%2C853612%2C78768%2C2340505%2C74513497&amp;geoId=92000000&amp;originToLandingJobPostings=3457213846%2C3457215686%2C3465525458%2C3434316689%2C3465523839%2C3434317651%2C3455923176%2C3428722174%2C3393201099" target="_blank" rel="noreferrer noopener">designer</a>, artist liaison <a href="https://www.linkedin.com/jobs/view/3447490680/?eBP=JOB_SEARCH_ORGANIC&amp;recommendedFlavor=SCHOOL_RECRUIT&amp;refId=H82HTaAru8y8n15rKjsuXg%3D%3D&amp;trackingId=Cxg6JmAqSSN1PeTlPbPvbQ%3D%3D&amp;trk=flagship3_search_srp_jobs" target="_blank" rel="noreferrer noopener">manager</a>, a product marketing <a href="https://www.linkedin.com/jobs/view/3434317651/?eBP=JOB_SEARCH_ORGANIC&amp;recommendedFlavor=SCHOOL_RECRUIT&amp;refId=Cocra09cvvmIAKoawTdI5Q%3D%3D&amp;trackingId=8n0x5xQvNRm%2FkQ4bKAh1nw%3D%3D&amp;trk=flagship3_search_srp_jobs" target="_blank" rel="noreferrer noopener">manager</a> and tech <a href="https://www.linkedin.com/jobs/view/3406685694/?eBP=JOB_SEARCH_ORGANIC&amp;recommendedFlavor=SCHOOL_RECRUIT&amp;refId=Cocra09cvvmIAKoawTdI5Q%3D%3D&amp;trackingId=c2L%2FfDlkUYt2zd613WK8Hw%3D%3D&amp;trk=flagship3_search_srp_jobs" target="_blank" rel="noreferrer noopener">lead</a>.&nbsp;&nbsp;



Most of the jobs are based in Manchester, United Kingdom, but some mention hybrid working environments.



Last June, eBay <a href="https://blockworks.co/news/ebay-acquires-uk-based-nft-marketplace-knownorigin" target="_blank" rel="noreferrer noopener">acquired</a> UK-based KnownOrigin for an undisclosed amount. Yet NFTs were already sold on the platform. EBay <a href="https://www.ebayinc.com/stories/news/ebay-and-digital-collectibles-our-tech-led-reimagination-continues/" target="_blank" rel="noreferrer noopener">announced</a> in 2021 an expansion into the collectibles category as they “offer greater access to a broader audience of collectors and creators.”



EBay describes KnownOrigin as an “early Web3 pioneer” looking to empower NFT creators who want to to express themselves and maintain livelihoods through their passion.&nbsp;



EBay <a href="https://blockworks.co/news/ebay-nfts-connect-athletes-fans" target="_blank" rel="noreferrer noopener">recently partnered</a> with events platform Notable Live to provide fans with a new way to connect with players.&nbsp;



Both firms have a multi-year contract under which Notable will add exclusive player merchandise, NFTs and other interactive experiences on eBay. It isn’t yet known which blockchain will support Notable Live’s NFTs.



Google searches for Web3 jobs have been steadily rising and companies are still hiring despite a bearish background.&nbsp;



Amazon, one of eBay’s biggest rivals recently put up a job posting for a senior go-to-market <a href="https://www.amazon.jobs/en/jobs/2320871/senior-gtm-specialist-web3" target="_blank" rel="noreferrer noopener">specialist</a>, who would be responsible for growing adoption of Web3 workloads on its cloud computing division. The role requires knowledge of blockchain-based architectures and developer workflow in Layer-1 and 2.&nbsp;



EBay’s KnownOrigin push comes after Blockworks reported that Amazon is soon expected to <a href="https://blockworks.co/news/amazon-nft-marketplace-web3" target="_blank" rel="noreferrer noopener">launch an NFT initative</a>, pegged to inspire customers to play crypto-based games and claim digital collectable rewards.



H/T: CoinDesk



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EBay NFT Job Openings Hint At Web3 Showdown With Amazon

Amazon is launching a digital assets enterprise, according to four sources familiar with the matter, who said that an NFT initiative is expected in the spring.



Amazon has been shopping the digital collectibles effort to no shortage of power players in the industry, per multiple sources. Said to be among those entities are layer-1 blockchains, blockchain-based gaming startups and developers and digital asset exchanges. There’s a focus on blockchain-based gaming and related NFT applications, two sources said. 



One example in the works, per one source: getting Amazon customers to play crypto games and claim free NFTs in the process.&nbsp;



The effort is still developing, sources said. April appears to have been penciled in for the e-commerce giant to make its bold crypto ambitions public.



Amazon “coming into the space” is “a big one” for crypto “for many different reasons, one source said.&nbsp;



“We knew it was possible,” the source said. “But now it seems like it’s really happening. That’s going to affect the existing players in the space — if they execute and do this right and are smart about it.”



Amazon executives leading the push reached out to at least one family office in recent months, one of the sources said. At the time, the plan, in its earlier iteration, was to do at least one NFT drop with an artist, the same source said. Amazon’s Web3 blueprint appears to have significantly evolved since.&nbsp;



It wasn’t immediately clear who in terms of personnel is leading Amazon’s NFT initiative. Details about the platform, which would include certain NFT gaming initiatives, are still unfolding, but two sources said the platform is set to run out of Amazon proper, rather than its popular web-hosting platform, Amazon Web Services (AWS).



An additional fifth source said Amazon has been exploring a number of other Web3 initiatives of late. When it comes to both the platform and Amazon’s additional crypto forays, a number of internal hires would likely be a prerequisite, one source said.&nbsp;



While Amazon Web Services has posted occasional roles for developers and engineers in the Web3 realm, the e-commerce site is not as well known for exploring the crypto or blockchain arenas. An Amazon <a href="https://www.amazon.com/gp/help/customer/display.html?nodeId=201434520">Coins</a> program continues to exist, following an introduction in 2013, but it is more akin to a straightforward loyalty program than a crypto initiative.



Andy Jassy, the CEO of Amazon, has previously <a href="https://cryptobriefing.com/amazon-ceo-hints-at-nft-sales/">stated</a> that he is open to the company selling NFTs — and that the company is not closing the door to cryptocurrencies generally.



Also an open question: the full extent of Amazon’s Web3 ambitions and end goals. Whether the company intends to compete with the likes of OpenSea and Rarible isn’t exactly clear, but two sources said both entities would view a successful launch as a substantial threat.&nbsp;



“With the [number] of customers Amazon has, they could make a huge splash in the NFT marketplace,” one source said.



Over 2.5 million users have so far interacted with OpenSea, the leading NFT marketplace today by trading volume, according to <a href="https://dune.com/queries/2877/5680">data</a> from Dune Analytics. There are now multiple <a href="https://blockworks.co/news/your-guide-to-nft-platforms" target="_blank" rel="noreferrer noopener">well-established places to buy and sell NFTs</a>. 



AWS recently inked a partnership with Ava Labs, the company behind the Avalanche blockchain, which Emin Gün Sirer of Ava <a href="https://blockworks.co/news/ava-labs-partnership-with-amazon-cloud-triggers-avax-rally">described as</a> “a huge boon for both individual and enterprise developers to be able to spin up nodes and test networks on the fly with AWS in whatever legal jurisdiction makes the most sense for them.“



A representative for Amazon did not immediately have a comment.



Updated Jan. 26 at 4:55 pm ET: Additional context and quotes throughout.



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Amazon NFT Initiative Coming Soon: Exclusive

Casey Wagner

<div id="highlights-block_635ff002d5f50" class="highlights">
 <ul>
 <li>Fed still expected to raise rates by 75 basis points</li>
 <li>Stocks are going to move on the news, and crypto is likely to follow, analysts say</li>
 </ul>
 
</div>



After a promising comeback in October, crypto and equities edged lower on the last trading day of the month as Monday kicked off a busy week for economic data.



The S&amp;P 500 and Nasdaq indexes lost 0.6% and 1.1%, respectively, at the start of the trading session Monday. Ether and bitcoin also posted losses, both dropping about 1%.



“This week is full of potentially important events and it’s not an exaggeration to say that the events of this week could result in another 5% rally in the S&amp;P 500, or a give back of a lot of the gains of the past two weeks,” Tom Essaye, founder of Sevens Report Research, said.&nbsp;



<a href="https://cms.blockworks.co/big-tech-trading-like-bitcoin-on-a-bad-day-after-disappointing-earnings/" target="_blank" rel="noreferrer noopener">Big Tech</a> saw crypto-like losses at the end of last week following a series of disappointing quarterly earnings reports, but markets overall remained steady.&nbsp;



<a href="https://www.cnbc.com/2022/10/27/amazon-amzn-earnings-q3-2022.html" target="_blank" rel="noreferrer noopener">Amazon lost more than 18%</a> during the after-hours session Thursday after the company missed on revenue. <a href="https://cms.blockworks.co/metas-metaverse-division-loses-nearly-3-7b-in-q3/" target="_blank" rel="noreferrer noopener">Meta closed Thursday</a> nearly 25% lower, ending the trading session at its lowest price since 2016, after posting a 4% year-over-year revenue decline. Meta is now down more than 72% year to date while Amazon has lost 40%.&nbsp;



Meta was trading nearly 5% lower at time of publication Monday while Amazon lost about 2%.&nbsp;



Even so, the Nasdaq Composite is up about 3% for the month of October, a reprieve from an otherwise disappointing year. The tech-heavy index is down more than 30% since the start of 2022.&nbsp;



Similarly, the S&amp;P 500 is seeing about 8% returns for the month, but it is still down more than 19% year to date. But Tuesday’s jobs data release and Wednesday’s Federal Reserve interest rate decision are setting up markets for a tumultuous November.&nbsp;



“The rebound itself, while impressive, was not that noteworthy,” Jim Paulsen, chief investment strategist of The Leuthold Group, said of equities’ mid-October comeback. “Bear markets often have sharp upswings, which ultimately fail.”&nbsp;



<h3 class="wp-block-heading">A predicted 75 bps</h3>



Federal Open Market Committee members entered their blackout period on Oct. 22, but prior to the quiet stretch leading up to Tuesday’s meeting, several members expressed resolve to get a handle on inflation once and for all.&nbsp;



Chicago Fed President Charles Evans and Fed Vice Chair Lael Brainard, as well as Cleveland Fed President Loretta Mester and others, insisted in recent weeks that the central bank will not shy away from higher rates to combat inflation.&nbsp;



On Monday, futures markets were predicting an 86% chance of a 75 basis point rate hike on Wednesday, according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html" target="_blank" rel="noreferrer noopener">data</a> from CME Group.&nbsp;



“It’s important to temper our enthusiasm and realize that, at these levels, the S&amp;P 500 is now stretching the bounds of justification given the actual market reality,” Essaye said.&nbsp;



“First, dovish hikes are still hikes. Yes, the Fed may well decrease the intensity of its rate hikes starting in December, but it’s still the terminal rate that really matters, and unless that drops towards (and ideally below) 4.50%, there’s no real dovish shift from the Fed.”



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Crypto, Equities in for Volatile Week Ahead of Fed Decision, Jobs Data

<div id="highlights-block_635af65bfd138" class="highlights">
 <ul>
 <li>Bitcoin managed to stay above $20,000 as Big Tech stocks continued their decline in after-hours trading</li>
 <li>Amazon lost more than 20% during the after-hours session Thursday while Meta closed Thursday nearly 25% lower</li>
 </ul>
 
</div>



Based on Thursday’s session, Big Tech is starting to trade like cryptocurrencies.&nbsp;



Although bitcoin managed to stay above $20,000, paring just 2% over the day, Big Tech stocks continued their decline in after-hours trading following disappointing earnings results.&nbsp;



<a href="https://www.cnbc.com/2022/10/27/amazon-amzn-earnings-q3-2022.html" target="_blank" rel="noreferrer noopener">Amazon lost more than 18%</a> during the after-hours session Thursday after the company missed on revenue. <a href="https://cms.blockworks.co/metas-metaverse-division-loses-nearly-3-7b-in-q3/" target="_blank" rel="noreferrer noopener">Meta closed Thursday</a> nearly 25% lower, ending the trading session at its lowest price since 2016, after posting a 4% year-over-year revenue decline. 



Apple, by contrast, posted a record quarterly earnings but still could not escape the market decline and lost 5% during the trading session, according to data from Investing.com.&nbsp;



<h3 class="wp-block-heading">Bitcoin’s volatility is legendary, but…</h3>



Bitcoin, known for its volatility, has only lost 18% or more in one day on 10 occasions over the last 10 years, and only twice in the last 5 years.&nbsp;



<a href="https://cms.blockworks.co/bitcoin-a-stable-investment-volatility-dips-below-nasdaq-sp-500/" target="_blank" rel="noreferrer noopener">Bitcoin’s 20-day volatility</a> is now lower than both that of the Nasdaq and S&amp;P 500, according to research from data firm Kaiko. Both BTC and ETH have outperformed META over the past year.



“Bitcoin’s market share of trade volume hit its highest level in more than two years,” Kaiko noted in a research report released Thursday. “Bitcoin dominance has increased sharply since April which suggests that sentiment has turned predominantly bearish after the collapse of Terra’s ecosystem and the wave of high-profile bankruptcies over the summer.”



Disappointing earnings, coupled with a looming central bank decision and a tumultuous macroeconomic environment, is creating an increasingly uncertain outlook for equities.&nbsp;



“US stocks are struggling for direction after a mixed bag of earnings was accompanied with economic data that supports the idea that the economy is weakening,” Edward Moya, senior analyst at Oanda, said. “Mark Zuckerberg is looking reckless here…artificial intelligence investment was boosted and now everyone is expecting Meta to have a free cash flow problem.”





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