Nike Announced recent acquisition RTFKT (Pronounced as an artifact), an NFT startup focused on collectable items. Both parties did not disclose the value of the total transaction amount.
Co-founded in January 2020 by three friends, RTFKT is a creator-led organization.They create NFT Of sneakers, memes and other collectibles. Prior to its launch in 2020, RTFKT was an undefined aggregate, providing designs for game companies and fashion brands to choose from. Co-founders Benoit Pagotto, Chris Le and Steven Vasil decided to expand their presence in the Metaverse and formed the entity. Since then, startups have grown at an unimaginable rate.
“This is a unique opportunity to build the RTFKT brand and we are pleased to leverage Nike’s fundamental strengths and expertise to build the community we love,” said co-founder Benoit Pagotto. I am. “Nike is the only brand in the world that shares our deep passion for innovation, creativity and the community. Metaverse.. “
Why the acquisition?
The purpose of this acquisition is to help Nike increase engagement with digital users. As one of the world’s largest athletic shoes and apparel brands, Nike is looking for ways to expand the digital side of its business and enter new technologies such as NFTs. Like other retailers, Nike suffers from supply chain delays. NFT sales could be another source of revenue to avoid supply chain problems.
“This acquisition is another step in accelerating Nike’s digital transformation and enabling it to serve athletes and creators at the crossroads of sports, creativity, games and culture,” said Nike President and CEO. John Donahoe says. “We have a team of highly talented creators with genuine connected brands. Our plan is to invest in the RTFKT brand and serve an innovative and creative community. To grow and expand Nike’s digital footprint and capabilities. “
Response from the NFT community
NFT enthusiasts are excited about another well-known brand entering the NFT action. Justin Buzzdarich, a Brooklyn restaurant owner and owner of several NFTs, believes that the acquisition of Nike will allow other large companies to take part in the NFT epidemic.
“If a big brand like Nike comes out, they’ll help educate people that this is the way forward and that other industries will be able to participate,” commented Bazdarich.
37-year-old Thomas Arias, who runs a small import business in Miami, is an avid NFT collector and is interested in building a collection of virtual Nike sneakers. “In the future, we expect assets that are far more valuable than the amount I paid,” Arias said.
Nike ambitions
Prior to the recent acquisition news, Nike had already positioned itself to increase digital engagement. In late October, Nike filed several trademarks with the United States Patent and Trademark Office to protect virtual sneakers and other merchandise engraved with the Nike Swoosh logo. Shortly thereafter, Nike partnered with Roblox to create a virtual world called NIKELAND. A free online gaming platform allowed users to dress up their avatars with Nike branded sneakers and clothing.
“There’s a lot of room for Nike to conquer the digital arena,” said Erin Murphy, senior analyst at Piper Sandler, in response to news of the recent acquisition of Nike.
RTFKT raised $ 8 million in a seed funding round led by Andreessen Horowitz in May 2021. After that funding round was over, the startup was valued at $ 33.3 million. While Nike can take time to make NFTs a major source of revenue and there are economic risks associated with the speculative nature of NFT pricing, the acquisition of Nike is a big deal for athletic apparel giants. I have high expectations.
Adidas NFT Collection
Shoe rivals Adidas have been at the forefront of NFTs. In mid-December 2021, adidas launched its first NFT collection, earning $ 23 million within a few hours. The 30,000 NFTs from Adidas’ Into the Metaverse collection sold out the same afternoon they were released.
Adidas has collaborated with Bored Ape Yacht Club, Punks Comics and GMoney to create an NFT. Bored Ape Yacht Club and Punk Comics are NFT projects, while G Money is a prominent NFT collector and crypto enthusiast. Given that Adidas was successful in launching its first NFT collection, it’s unlikely that it’s the last NFT they offer.
Other companies entering the NFT
Many companies, especially the fashion and consumer goods industries, have quickly gained a foothold in NFTs. Some luxury fashion brands are auctioning NFT collections certified by blockchain technology. For example, the Dolce & Gabbana NFT collection has raised $ 5.7 million in a recent auction.
In September 2021, Balenciaga partnered with Epic Games to bring high fashion to online games. Fortnite.. In May 2021, Gucci entered the Metaverse and launched a virtual environment with Roblox. The Gucci Garden experience paid tribute to Gucci’s 100th anniversary by introducing Roblox’s state-of-the-art developer tools. Finally, luxury shoe maker Jimmy Choo debuted its first NFT collection on the Binance NFT Marketplace in October 2021.
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