Home / Companies / News /  Nike buys into NFTs, eyeing real money from virtual sneakers

Thomas Arias is the proud owner of more than 100 pairs of new and vintage Nike Inc. sneakers. Now he is thinking about building a new collection of the brand’s footwear—but in the virtual world.

“I see an asset that possibly some time in the future could be worth a lot more than what I paid, » said Mr. Arias, who is 37 years old and helps his father run a small import business in Miami.

Nike, which reports second-quarter earnings Monday, is banking that sneakerheads like Mr. Arias and others will want to invest in virtual kicks as it looks to further expand the digital side of its business by tapping into emerging technologies such as nonfungible tokens, or NFTs. The tokens are essentially digital deeds that verify the authenticity of the items they represent as unique.

Earlier this month, Nike acquired Rtfkt (pronounced artifact), a startup launched in 2020 that creates NFTs of sneakers and other collectibles, for an undisclosed sum. Nike also recently filed trademark applications indicating it wants to sell NFTs of its sneakers, clothing and other goods stamped with its swoosh logo. Shortly afterward, the company launched a virtual play place on Roblox Corp.’s free online game platform where users can dress their avatars in Nike gear.

The moves speak to Nike’s ambitions at a time when a range of fashion and other consumer-goods companies are racing to claim footholds in virtual worlds where people are expected to learn, work, shop and be entertained. Dolce & Gabbana, Jimmy Choo and Adidas AG have launched NFTs. Balenciaga worked with “Fortnite » maker Epic Games Inc., and Gucci worked with Roblox to create immersive digital worlds.

Nike didn’t respond to requests for comment about its plans for Rtfkt. The startup referred questions to Nike.

Nike has long dominated the scarcity model in the physical world by selling limited quantities of exclusive items and hyping their uniqueness, said Erinn Murphy, senior analyst at Piper Sandler & Co. “There’s so much white space for Nike to conquer in the digital realm as well, » she said.

The apparel-and-sneaker seller has spent years beefing up its digital business by launching apps like SNKRS, which offers users access to exclusive items and events. Analysts say the digital investments have been a boon for sales. Overall, Nike’s net sales through its online channels have outpaced sales through bricks-and-mortar stores for more than a year.

Rtfkt, which was valued at $33.3 million after a funding round in May, designs its own virtual sneakers and avatars, which have collectively sold for millions of dollars in just minutes. The company has manufactured physical products through so-called “forging events, » where owners of the studio’s NFTs can request to have their virtual sneakers made into real ones.

Nike could also release real-world exclusives with NFTs, and the tokens could be traded via digital marketplaces such as OpenSea.

Tech analysts say NFTs could pose financial risks to buyers because their value is largely based on speculation and thus they tend to be volatile. While NFT creators may tout the unique nature of the tokens, they sometimes create thousands for the same item.

It could take years—if ever—for NFTs to become major drivers of Nike’s sales. But the company’s peers are finding some success in the space. Adidas launched its “Into the Metaverse » NFT collection on Friday and made around $23 million.

Analysts polled by FactSet project Nike to have generated $11.25 billion of revenue in the three months ended Nov. 30, which would be roughly flat from the comparable year-ago period. Nike’s stock price is up 12% over the past year, compared with a 25% gain in the S&P 500.

Nike, like other retailers that rely on manufacturing plants in Asia, has been hit by supply-chain woes stemming from the Covid-19 pandemic. Second-quarter profit could fall roughly 20% from the year-ago period, based on analysts’ projections.

The company said in September that shipments were taking twice as long to arrive in the U.S. but that it had enough inventory for the holidays.

Selling NFTs might be one way for Nike to quickly sidestep the supply crunch.

Justin Bazdarich, a restaurant owner and self-described sneakerhead, said he is excited about Nike’s purchase of Rtfkt. Mr. Bazdarich, of Brooklyn, N.Y., owns several NFTs, one of which cost $2,000 and is associated with a rotating virtual shoe that Rtfkt created in partnership with streetwear designer Jeff Staple.

“If a big brand is coming into play like Nike, then they’re going to help educate people out there that this is the way of the future and will allow other industries to partake, » the 44-year-old said.

This story has been published from a wire agency feed without modifications to the text

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

It follows a similar proposal – the Better Online Ticket Sales Act (BOTS Act) – that was signed into law in 2016, prohibiting the use of automated bots to acquire tickets for public events and making it illegal for scalpers to sell those tickets.

Comment battre un bot de baskets ?

The 5 Steps to Beat Bots on Sneaker Drops

• Step 1: Get Sneaker Proxies. So, the first way you can try to beat bots on release day is by using sneaker proxies. …
• Step 2: Use Autofill on Checkouts. …
• Step 3: Upgrade Your Computer Specs. …
• Step 4: Hit the Right Sites. …
• Step 5: Beat Bots, With Bots.

Are bots illegal for shoes? There is no law that forbids you from using an actual sneaker bot to buy sneakers or anything else. However, sneaker bots usually violate the store’s terms and conditions and whatnot. You see, some stores have a 1 pair per customer policy.

Puis-je coder un bot de baskets ?

You gotta learn a programming language that can kickstart the development of your very own sneaker bot. Lucky for you, you’ve got 700 languages to pick from! You got Python, Java, C#, Go, or even Electron. … A sneaker bot that’s got a reasonable retail price, super high efficiency, and it WORKS.

Est-il possible de bot Snkrs ?

Users are encouraged to tune into SNKRS Live sessions as ways that will help them increase their chances of gaining exclusive access. Nike also confirmed that bots will not do anything to help users get greater chances. … It is to be acknowledged that it is not something new for Nike to give its members Exclusive Access.

Combien les revendeurs de chaussures de sport gagnent-ils par mois ?

It is absolutely possible to make five figures, more than $10,000 per month reselling shoes. Many people see resellers like Benjamin Kickz or Rashed Belhasa and wonder how these teenager are making so much money from just sneakers.

How much do sneaker sellers make? If you follow the process of flipping shoes, you can get around $80-100 per pair for starters. You can work your way to generating higher margins if you get better sneakers to resell, maybe around $500 per pair. This is not a bad way to make money, and you’ll learn the exact process later on.

Peut-on vivre de la revente de baskets ?

If you’re a self-driven entrepreneur, you can make good money selling sneakers. Possibly even enough money to replace your 9-to-5 income if you hustle hard enough. If you’re going to build a business, it’s easier to put in the work if it’s something you’re passionate about.

Combien les revendeurs gagnent-ils par mois ?

Here’s what you can expect. “After some experience, it’s typical to earn anywhere between $500-$1,500 per month in profits if you are reselling part-time,” Phelps said.

Est-il risqué de revendre des chaussures de sport ?

Reselling sneakers involves a variety of risks. One is the simple fact of competition. As more individuals try to resell a finite number of shoes, resellers can only mark up their products so much before competitors undercut them. This leaves sellers in a precarious position as the secondary market expands.

Is it illegal to resell sneakers? Hello, it is not illegal to resell shoes. After you buy the goods in the store, you can choose by yourself. The manufacturer has almost no control over the product. The resale model is the main mode of operation in the current footwear industry.

Est-il illégal de revendre des chaussures Nike ?

You are free to resell any lawfully purchased item and you are not required to purchase from an authorized source, but doing so ensures the best chances that you are dealing in legit product.