Nike is using NFTs to sell limited-edition sneakers or other collectibles, leveraging the popularity of the brand and the growing interest in NFTs. Also has taken a step further into the world of digital collectibles with the Nike NFT acquisition of NFT studio RTFKT.
This Nike-bought NFT company comes as RTFKT was gaining attention with the CloneX avatar partnership with artist Takashi Murakami, which generated around $65 million in transaction volume within its first three weeks after launch. While the terms of the deal were not disclosed, the startup had previously raised $8 million in a seed funding round led by Andreessen Horowitz in May, which valued the company at $33.3 million.
RTFKT is known for creating digital avatars and Metaverse collectibles. Right now, one of their most popular creations is Cryptokicks, which are digital sneakers that can be customized and purchased as NFTs on the Ethereum blockchain.
With this acquisition, Nike's collaboration with RTFKT was focussed on launching the Nike NFT Shoes iRL. The real-life Cryptokicks boast innovative features, such as a lacing system that adjusts to a comfortable, pre-programmed fit after the wearer starts walking. Each pair of Cryptokicks comes with a wireless Power Deck that can connect to the Cryptokicks iRL app via Bluetooth. Additionally, the NFT Sneakers Nike are equipped with RTFKT's latest World Merging (WM) NFC chip, which allows users to authenticate each physical copy with its digital counterpart to verify its authenticity.
This acquisition showed Nike's interest in the growing world of digital collectibles and the Metaverse. RTFKT's innovative designs and expertise in the field will undoubtedly be of great benefit to Nike as it explores new possibilities in the digital realm. With the launch of Cryptokicks iRL, Nike is not only bringing the virtual world to life, but also creating a new form of physical and digital collaboration that can change how we experience sneakers and other collectibles.
Nike has launched its new NFT drop, Cryptokicks iRL, in collaboration with RTFKT. The collection had a limited edition of 19,000 sneakers in four styles that Nike is calling "the first native Web3 sneaker" line. The physical NFT Nike shoes will ship in May and only to U.S. addresses, which has caused some frustration in the intense collectible sneaker market. The new sneakers will feature haptic feedback, gesture control, walk detection, app connectivity, and wireless charging brought together with artificial intelligence/machine learning (AI/ML) algorithms, as well as auto-lacing technology that Nike designed for the Air Mag more than 30 years ago for the film Back to the Future 2.
To purchase the Cryptokicks sneakers, one must burn a special "forging" NFT, which is purchasable on the secondary market, to mint a Stockx Nike NFT version of the shoes and order an iRL in their size and style choice. The prices ranged from $450 to $1,333, payable in ETH. While Nike did not reveal many details about how the NFC-linked physical and digital versions of the sneakers would interact, the technology suggests that it hopes to pair them in the metaverse and game settings.
In October 2022, Nike had $185 million in NFT sales, ten times more than the rest of the top 10 brands combined and 14 times more than the No. 2 brand on that list, Dolce & Gabbana. Nike made that on 67,000 sales, while Adidas's 50,000 sales brought in just $11 million.
Nike has also announced a collaboration with Polygon, the blockchain scaling platform, to launch a Web3 platform called "Swoosh". The platform will feature digital apparel, such as t-shirts, sneakers, and accessories, that can be used to dress digital avatars and will include virtual events and exclusive products. The first NFT drop was in January 2023, and customers became co-creators and shared digital product royalties with Nike.
Nike's NFT apparel was minted on the Ethereum-based blockchain through this Nike Polygon collaboration. The company seeks to integrate its services into web3 and capture a slice of the growing business in the metaverse. The platform will position itself as an epicenter for virtual apparel, featuring Nike's iconic array of clothes in the form of digital assets. Other brands, such as Adidas, have also ventured into web3 through collaborations with Yuga Labs, the creators of Bored Ape Yacht Club. Companies view the early metaverse as a "testing ground" for this new venture and a potential brand-new marketing strategy.
Nike is entering the metaverse with its new platform called Swoosh. The platform will host all the brand's virtual products and serve as a place for the collection of Nike's digital items for gaming and immersive experiences. In addition, Nike Swoosh NFT will eventually allow the Nike community to buy, sell, trade, and co-create new digital merchandise for a percentage of royalty streams. The platform will initially prioritize Web3 education with a six-city tour before selling virtual goods regularly. Nike is inviting its first cohort of participants to try out the beta, with a focus on diversity and inclusivity. Users will be able to create their own .swoosh domain, which will act as their online identity or "home" inside Nike's metaverse. If you wonder how to buy Nike NFT, Swoosh.nike can be a nice place to start looking at.
The brand's history of innovation shows its dedication to technology. Nike has been ahead of the online curve since 1999, with the debut of Nike ID, a customization service for customers to design and receive their personalized Nike merchandise. In 2006, Nike collaborated with Apple to present an iPod sensor that combined sports and music for users to track physical activity with a portable track player. Nike also unveiled its fitness wearable, the Fuelband, three years before the introduction of the Apple Watch. In 2019, the brand launched Nike Fit, a foot-scanning solution to measure and match every person's foot size to the best-fit product. Now, with Swoosh. Nike NFT, Nike aims to bridge its established community to the greater Web3 ecosystem, using the power of the blockchain to create new opportunities for brands, products, and players to connect and unite with their supporters from anywhere in the world.
As we said previously, Nike's partnership with RTFKT Studios gave birth to Nike Cryptokicks, which can be customized with eight skins designed by RTFKT's community of artists and contributors. These skins can be applied to the virtual Nike shoes NFT by changing the "Skin Vial," which changes the sneakers' appearance. The Skin Vials are already available on OpenSea and other marketplaces, with a wide range of new vials set to be launched in the future.
Nike has also launched Nikeland, its store in the Roblox metaverse, which has been successful in terms of visitor numbers and revenue. The store had 7 million visitors in its first five months since launch, contributing to the overall increase in digital revenue activities.
The price of the sneakers ranges from $450 to $1333. This initiative is a part of Nike's ongoing Web3 activities and aims to establish a community with over 1 million followers on social media. The Nike-RTFKT duo has been working on this effort as the next stage of their journey. With the NFTs, Nike is exploring a new and innovative way to provide its customers with a collectable that holds value and is also functional. This launch has generated a lot of buzz and interest within the crypto community, with many enthusiasts eagerly anticipating the release of the digital collectible sneakers. It remains to be seen whether Nike will expand its NFT offerings in the future or continue to explore the potential of the technology.