Information has been circulating since yesterday that Amazon has entered into a brand new crypto partnership with Ripple.
Though the information will not be fully unfaithful, some readability must be given about it to keep away from it being misinterpreted.
Amazon’s official web site and the information concerning the crypto partnership with Ripple
Certainly, on Amazon’s official web site, a page was posted explicitly titled “AWS Companion Profile: Ripple.”
AWS stands for Amazon Net Companies, and it’s a subsidiary of Amazon that gives cloud computing providers.
Though AWS could appear to be merely a type of frill for Amazon, it’s as an alternative answerable for a lot of the group’s income.
The Amazon group turns over $500 billion a 12 months, however has no revenue. It’s because whole bills are better than revenues, though AWS is an exception.
Amazon Net Companies makes $80 billion a 12 months, however with nearly $23 billion in revenue. That’s, if there have been no AWS, the Amazon group could be deep within the purple, whereas on this manner it pays off nearly all of its losses.
Due to this fact AWS is an important a part of the Amazon group, and a partnership with Ripple is one thing essential.
Crypto: the issue over the information between Amazon and Ripple
Though from all this the information that’s circulating lately could seem right, it seems that this web page was truly revealed three years in the past, in June 2020. It has by no means been considerably modified since then.
What’s extra, in December of that 12 months Ripple was sued by the SEC, and though this lawsuit ended with XRP profitable, the choose truly discovered Ripple responsible.
It’s value remembering that Ripple is the non-public firm that created the cryptocurrency of the identical identify, which was later renamed XRP and have become considerably extra decentralized.
So not solely is that this not new data, however it additionally dates again to a really totally different time in historical past than it does at the moment.
In the meantime, AWS has made enormous strides within the crypto world, a lot in order that even in July it launched new instruments.
The evolution of the crypto business
The very fact is that in these three years, which have additionally seen the start and finish of a significant new bull run, many issues have modified inside the crypto sector.
One of many largest modifications has been the growth of some new blockchains that in 2020 both didn’t but exist or had been nonetheless semi-literate.
The panorama has since modified fully, aside from Bitcoin, with, for example, Ethereum abandoning Proof-of-Work for Proof-of-Stake and the emergence of many second layers resembling Polygon, Arbitrum, and Optimism.
In different phrases, what was significant in June 2020 could not be significant in September 2023, or could imply one thing totally different.
As an illustration, in August 2020, Ripple’s CEO declared that the corporate was following within the footsteps of Amazon itself, whereas at the moment such an announcement would appear merely nonsense.
AWS now collaborates with many alternative blockchains, and with a number of crypto companions, resembling Avalanche with whom a partnership was shaped in January of this year.
So not solely is the information outdated, however its scope must also be drastically scaled again in mild of what has occurred since 2020, and particularly in mild of the present state of affairs, which is far richer in partnerships with crypto firms.
The function of XRP
The web page on Amazon’s official web site additionally talked about XRP, imagining some attainable use of it, for instance to spice up liquidity.
In June 2020, the worth of XRP was about $0.2, rising to just about $0.7 earlier than the SEC lawsuit.
Later the worth rose to $1.6 through the massive bullrun of 2021, however solely to return to $0.3 in June final 12 months.
After the victory within the lawsuit in opposition to the SEC it had risen to $0.8, however has lately fallen again beneath $0.5.
The present worth due to this fact is much larger than in June 2020, however is decrease than in November of the identical 12 months.
It’s value noting that over the past bull run the height has remained properly beneath the all-time excessive of $3.8 touched in January 2018, and has now been hovering between $0.2 and $0.8 since Might of that 12 months, besides through the 2021 bull run.