The market is again growing after the Amazon rumor appeared, but it also seems that this rumor has no substantial facts backing it. If there is no new valid information about this in the next few days then it will not help the market, not even in the short term.
Last year, credible sources of the crypto industry announced that PayPal was months away from adopting cryptocurrencies for its online app and services. These rumors appeared after a discussion of known cryptocurrency individuals with PayPal executives.
The PayPal rumor was more than just a rumor but mostly a pre-announcement of PayPal adding BTC, Bitcoin Cash, Ethereum, and Litecoin as payment options.
Meanwhile, this rumor we read about yesterday has many red flags that we can’t just ignore. An anonymous female informant, presumably from the higher levels of Amazon’s hierarchy just happened to discuss top Amazon plans for integration of cryptocurrencies with an irrelevant newspaper in the UK.
In fact, there is nothing credible in this report by “Citi a.m.” newspaper, besides the fact that Amazon is creating its own Digital Currency that may resemble some of the features cryptocurrencies today have.
How the Rumor Started Circulating
Image from: flickr by Bernard Goldbach(Creative Commons Licence)
Crypto news started yesterday circulating the information that Amazon is on its way to accept Bitcoin.
Even though the rumor itself wasn’t just mentioning BTC but it contained also Bitcoin Cash, Ethereum, and Cardano, something that was underreported by the crypto media.
Source: Citi a.m.
“Ethereum, Cardano and Bitcoin Cash will be next in line before they bring about eight of the most popular cryptocurrencies online,” she added.
Source: Citi a.m.
The first two red flags are already there.
The word "definitely" that is included in this title, gives us the hint that this "insider" doesn't have actual knowledge but is just speculating.
The word "confirms". There was no rumor before about Amazon. Confirmation of a rumor appears after we first have a rumor circulating. Until this article appeared no rumor existed.
This is how the rumor spread
Amazon posted on its website a vacancy for a blockchain expert to take over the product management for the creation of an Amazon digital currency. (Source)
The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap.
After reading the whole Amazon ad, the conclusion is that Amazon is looking for a product manager for its digital currency that will be running on its private blockchain.
The facts we have are just coming from this Amazon ad, and there is no mention of introducing other cryptocurrencies in the Amazon ecosystem. It will be just the "Amazon Coin" and nothing else.
The ad itself wasn't going to "pump" the market so an untrustworthy rumor had to appear and be recycled within the crypto media.
Market Reaction to the Rumor
Amazon has posted cryptocurrency-related ads before (source) but this didn't move the market and no rumors of crypto adoption appeared.
It required an anonymous informant in a dubious newspaper nobody ever heard before to create a pump.
It is also interesting that nearly 900 million shorts were liquidated in minutes after this news circulated the web.
Source of Image: The Block Crypto
The Amazon rumor even though it has very small chances of being real, it managed to push prices upwards a lot, liquidate shorts and create a bullish sentiment.
What happened was that not just the aforementioned cryptocurrencies pumped as the logical assumption would be, but everything started rising.
Was Dogecoin, Polkadot, XRP, or UniSwap on the list of this newspaper? No, but they are still rising like this rumor will have any effect on them.
The rumor is about BTC, Ethereum, Bitcoin Cash, and Cardano. There is no mention of any other cryptocurrency, yet this happened:
Dogecoin had the best performance out of all and we observe all cryptocurrencies rising today.
The Amazon Digital Currency
“When all these crypto ducks are lined up, there’s another twist to push things even further into Amazon’s favour – a native token,” the insider explained.
Source: Citi a.m.
About the Amazon digital currency, as many are expecting, the only resemblance to cryptocurrencies will be the word "blockchain". It will be a centralized currency under the control of Amazon.
The Amazon coin is widely expected to be a stablecoin. Possibly Amazon will try to create another "Libra" that will be also met with the same regulatory resistance that didn't allow Facebook to proceed with its plans.
Amazon Rumor on Adopting Crypto
Considering the rumor about Amazon accepting Crypto, it seems there was some kind of poorly constructed rumor circulating some dubious crypto-news websites, but there was no hint that Amazon could ever adopt cryptocurrencies from the information provided. (Source). Speculation was at the lowest point and these rumors weren't convincing unless an insider was going to drop the adoption bomb.
An anonymous insider appeared out of nowhere and a report from an unreliable source induced a market "pump". This is how it looks like everything happened.
I'm taking this kind of rumor with a pinch of salt unless there is some serious leak of inside information coming from credible sources in the following weeks.
While we all would love to see Amazon adopting cryptocurrencies this rumor looks like it was made-up.
What we have witnessed so far is just an imaginary insider that informs us that "definitely" Amazon is looking to accept cryptocurrencies.
Lead Image from: flickr by Bernard Goldbach(Creative Commons Licence)
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Oh omg I think I read that headline somewhere in Noisecash but didn’t really read thoroughly. Apparently it is just a rumor huh