Nike (NKE) wants to be the reference point in the sneaker world.
The brand aims to preserve its leadership at all costs, in the real world or the virtual one. No surprise, then, that the sports-equipment manufacturer made its ambitions clear as soon as the metaverse became the buzzword.
The metaverse is a virtual world in which we are called upon to interact via avatars and technological tools such as virtual-reality helmets. In the metaverse, we are supposed to be able to do almost all the activities that we do in the physical world.
Nike started by filing a lawsuit in February against StockX, the Detroit sneaker exchange, which it accused of having infringed its patents by marketing nonfungible tokens of its sneakers. The company said that StockX had been selling unauthorized images of its shoes as NFTs.
CryptoKicks or Digital Sneakers
In its complaint Nike also claimed that StockX offered a range of products likely to confuse consumers.
At issue here is that in March StockX pioneered the Vault NFTs concept around the combination of physical products and NFT. The collection links a digital token that users can trade with each other with actual sneakers: Users can purchase NFTs of popular collectible sneakers that are backed by a physical pair. Owners can then redeem their NFTs for the physical pair of sneakers if they wish to do so.
But this is so yesterday. That's because Nike has just taken a big step into the metaverse: The brand and the young digital fashion studio RTFKT have just unveiled a new kind of sneakers, entirely digital. These sneakers are called CryptoKicks.
"RTFKT, together with Nike CryptoKicks, introduce the future of Sneakers, powered by Skin Vial tech," RTFKT recently posted on Twitter. "Welcome to 2052 : 🌐👟🧪"
The CryptoKicks Secondary Market Is Buzzing
RTFKT specializes in creating virtual ready-to-wear items, associating each of its products with an NFT. These NFTs are digital deeds of ownership that are certified and traceable on the blockchain. Each product RTKFT sells is available in very limited quantities to create excitement and create a feeling of exclusivity.
CryptoKicks were first offered to members of the RTFKT community. Those with an NFT then received a box containing the digital sneakers. Each box is associated with an avatar that RTFKT creates as part of its Clone-X program, which is a set of 20,000 NFTs that depict Japanese-style characters. Some of these avatars trade at more than 18.5 ethers on OpenSea, or almost $55,000.
Nike since November has had a virtual space in the Roblox (RBLX) game. The buildings and grounds in Nikeland are modeled after the actual Nike headquarters. They contain detailed arenas for the Roblox community to participate and test their skills in various games like Tag and The Floor is Lava. Players can also dress up their avatars with Nike products.
Cryptokicks have been very successful so far. Just a few days after they launched, these digital sneakers are currently trading on the NFT OpenSea marketplace at around 2.285 ether, or $6,521.68. That's based on the current ether price, $2,854.13.
Reactions to CryptoKicks on Twitter are generally positive, which should reassure Nike as it tries to be the sneaker brand Gen Zers turn to.
"I m hyped for my angle dunk," a user posted a user on the social media.
"Peoples I called this 🔥👀🧬👀," another commented.
"THE FUTURE IS NOW 🧪🗿🛸," wrote another one.
