Sportswear giant Nike is the most successful company with its non-fungible token (NFT) foray, generating millions in revenue from the sale of its NFTs.
The company had raked in over $185 million from the sale of its NFTs by early September, outperforming other fashion brands by a wide margin.
Furthermore, Nike had received over $93 million in royalties by September. The company’s NFT collection had made $93 million in primary sales volume and $92 million in secondary sales.
In comparison, other companies have not been much successful. For instance, clothing brand Dolce & Gabbana, which is the second top company in terms of NFT revenues, has made around $25 million from the sale of its NFTs. Other major fashion brands like Tiffany, Gucci, and Adidas have each made between $11 to $13 million from their NFT sales.
Nike Launches Web3 Platform .Swoosh
Nike aims to ramp up its efforts with the launch of a new Web3 platform called .Swoosh. The platform is billed as the epicenter for Nike’s digital efforts around Web3. It’s designed to spotlight the brand’s NFTs and virtual apparel initiatives, including future ways for customers to become co-creators and share in digital product royalties.
Nike will use the platform as a hub to launch virtual apparel like t-shirts and sneakers for avatars that can be used within Web3 games. It will also utilize Web3 tech to allow users to unlock real-world benefits, such as exclusive physical apparel or chats with pro athletes.
Some other popular NFT projects—including one from Adidas—come with physical apparel or real-world perks.
Back in December 2021, Nike acquired RTFKT, a virtual sneakers company that creates NFTs and digital sneakers for the metaverse. The terms of the deal were not disclosed, but RTFKT was last valued at $33.3 million, suggesting that Nike could have paid well over $30 million for the deal.
The RTFKT acquisition came after the footwear giant unveiled Nikeland, a 3D virtual space where fans can “connect, create, share experiences, and compete,” in November 2021. In fact, Nike’s interest in blockchain dates back to 2019, when the company started exploring blockchain technology to tokenize the ownership of exclusive shoes.
Earlier this year, Nike and RTFKT unveiled their first collection of virtual sneakers. Called CryptoKicks, it was a collection of 20,000 digital wearable items apparently designed for use in metaverse worlds.