Nike will permit custom sneaker creation and sale in the metaverse.
With the help of the brand’s design team, Swoosh members will compete to develop digital sneakers and win a royalty share. But not even Nike is aware of how it will operate.
Nike’s initial line of sneakers for the metaverse are selling for enormous sums of money.
On the online market OpenSea, a collection known as CryptoKicks is being sold as non-fungible tokens (NFT). Customers purchase the shoes using bitcoin for between $4,000 to $9,500, although some pairs have sold for well over six figures. According to OpenSea, about 9,000 pairs of the Nike Dunk Genesis NFTs have been sold.
In contrast, a pair of Nike Supreme Stars Mean Green SB Dunk Lows was going for almost $1,000 on StockX on Thursday. According to CBSSports.com, a pair of Nikes that Michael Jordan wore in 1984 during his rookie season was auctioned off in October and brought $1.47 million.
In order to ensure that each NFT is distinct and immutable, blockchain technology and smart contracts are used. Instead, an avatar walking around a virtual realm like Decentraland will wear the shoes.
Customers may alter the color of the iconic Swoosh, heel, straps, and tongue of CryptoKicks by purchasing a “skin vial.” After Nike purchased the firm in December, NFT design studio RTFKT produced the sneakers. Nike and RTFKT are hopeful that sales of the shoes will contribute to the anticipated surge in metaverse-related sales in the ensuing years.
According to research company Strategy Analytics, the worldwide market for metaverse transactions is predicted to reach $6.1 billion this year and about $42 billion by 2026.
RTFKT (pronounced “artifact”), which debuted in 2020, made headlines last year when a line of actual sneakers combined with NFTs sold out in seven minutes, earning the company $3.1 million.
Requests for comment on sales of CryptoKicks were not answered by Nike. Last month, CEO John Donahoe mentioned “the great momentum and excitement we’re already witnessing in the area” on an earnings call. Nikeland is a section of the online gaming platform Roblox that was introduced by the corporation last autumn. Fans may play sports in a virtual setting while creating avatars of themselves in this area.
