Is Amazon (AMZN) Gearing Up for a Cryptocurrency Exchange?

In an article published yesterday, ValueWalk.com reporter Maj Soueidan suggests Amazon (NASDAQ: AMZN) could be "gearing up for cryptocurrency exchanges" following reports the company has registered names related to cryptocurrencies. The domans include: amazonethereum.com, amazoncryptocurrency.com, amazoncryptocurrencies.com.

CNBC reported the domain registrations in November, following up on an original report from trade publication, DomainNameWire, prompting immediate speculation across social and online publications, that AMZN was preparing to accept cyptopayments on it's platform. However, Souejdan provides a different take, writing, "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'. "

Souejdan follows up the 'exchange' premise with a speculative breakdown of how the company would monetize a potential Amazon cryptocurrency exchange, commenting that, "the notion of being able to take a fee off of every transaction in the future is, I believe, a promising runway for new revenue growth. In addition, the managing of exchanges is would be an extremely synergistic enterprise for Amazon as not only do they already have the massive computing power necessary to run their own exchanges and potentially mine for cryptocurrency themselves, but they are already one of the world’s largest marketplaces and the addition of cryptocurrencies to their arsenal would likely be a self-fulfilling prophecy that helps bolster the value of the cryptos that they would be transacting in. Using all of their resources to run a cryptocurrency exchange could be one of the best new runways for revenue growth that Amazon could possibly enter into at this stage in the game."

The article concludes with the ValueWalk.com reporter also speculating on the potential for AMZN to acquire Coinbase, eventually competing with Overstock.com (NASDAQ: OSTK), while potentially allocating resources to mining cryptocurrencies, all resulting in increased "credibility of digital currency" space.

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