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Highlights
- Earlier in December, Nike purchased Rtfkt (pronounced art-i-fact) - a startup launched in 2020 that creates custom NFTs of sneakers and other collectibles
- Adidas, announced its next collection will be a mix of digital and physical products. Additionally, the products will be created with collaborators such as Bored Ape Yacht Club
- People buy products from Nike and Adidas because they make a statement. Taking the product into a digital context, it makes sense that people would pay money for a Adidas or Nike NFT
NFT (non-fungible token) was the Collins Dictionary 2021 “Word of The Year” and its no wonder why. NFTs have been everywhere this year, defining a new way to portray clout as well as new way for artists to display and monetise their work.
And it’s no joke. In March, surreal artist Beeple collected US$69 million for his NFT piece titled Everydays: The First 5,000 Days. Additionally, collections like CryptoPunks and The Bored Ape Yacht Club have pulled big dollars for their off-beat character pieces.
Now, the sportswear industry wants a piece of the action as industry giants, Nike and Adidas, has declared its wish to sell NFTs of its sneakers and clothing.
You might think, why would anyone want to buy a pair of Nikes they can’t even wear? Well, consider this. Why pay the extra money on a pair of Nikes when you can go to Target and buy a pair of no-thrill sneakers for a hundred and fifty dollars less? People buy products from Nike and Adidas because they make a statement. Taking the product into a digital context, it makes sense that people would pay money for a Adidas or Nike NFT.
Nike’s Foray into The NFT Space
Earlier in December, Nike purchased Rtfkt (pronounced art-i-fact) - a startup launched in 2020 that creates custom NFTs of sneakers and other collectibles. Nike is counting on sneakerheads wanting you purchase digital representations of their sneakers. Furthermore, Nike plans to sell clothing and other goods stamped with its swoosh logo in the form of an NFT.
The move from Nike is indicative of a time when fashion companies are looking to get a foothold in the virtual space.
Nike have previously worked the scarcity angle in selling its products by selling limited edition sneakers. The move into the NFT space is just extending this angle into the virtual world.
Image Source: © Bragearonsen | Megapixl.com
Adidas Launches Its Own NFTs
Not to be outdone, Nike’s main competitor, Adidas, has announced its next collection will be a mix of digital and physical products. Additionally, the products will be created with collaborators like the Bored Ape Yacht Club.
The collection, titled Into The Metaverse will include virtual wearables that buyers can use in online platforms, but also the matching physical clothing.
Adidas chief digital officer Scott Zalaznik praised blockchain technology, saying the technology’s recording of the unique signature and ownership of NFTs presents a great opportunity for brands.
The Adidas NFTs went on sale on December 17 priced at 0.2 Ethereum, with the digital and physical wearables for NFT owners to be made available next year.
The Bottom Line
Nike and Adidas's move to the NFT space represents a period of great change in society and culture as the world moves further into the digital space, or the Metaverse. While it’s unclear exactly what this space will look like in the coming years, the direction Nike and Adidas are moving in sets up exciting possible for the sports and fashion market in the near future.
