Adidas unveils new NFT project with Bored Ape Yacht Club

Nike’s metaverse plans share a similar sentiment, but the differences in execution illustrate just how much this virtual ground is still unexplored: At the time of publication, Nike had not yet created its own NFT, but in its “Nikeland Free on the Roblox metaverse platform, visitors can play games and try out iconic pieces from Nike, Jordan Brand and Converse in a digital showroom. Nike also recently indicated its intention to sell virtual branded sneakers and apparel through several recent brand applications.

Progress has been much faster than previous ones suggest, leading to a hype quotient in which sneakers and streetwear thrive. The Adidas project took nine months to develop, meaning that conversations were underway in March. The first luxury NFT – an art film by Gucci – was announced in May. Since then, momentum has gathered pace across the fashion and beauty industries. Louis Vuitton, Burberry, Nars, Givenchy and Clinique have all issued NFTs. Balmain launched three NFT projects in just a few months.

Money and market value

The metaverse represents an attractive space for future brand growth, with metaverse games and NFTs set to constitute 10% of the luxury goods market by 2030 – a revenue opportunity of 50 billion euros, according to the bank. Morgan Stanley investment.

Pricing digital items, including NFTs, can be tricky: overpricing them risks alienating an eager audience. Undervaluing them, or leaving them up for auction, risks appearing as brand devaluation. This is partly why Clinqiue and Louis Vuitton have chosen to donate, rather than sell, their NFT collections; why Gucci and Ralph Lauren price digital items in Roblox much less than they could. (Nike adopts a similar strategy in its physical sneaker drops.)

Even at this late stage, Adidas is still in the process of finalizing a pricing structure. “If you compare it to an NFT Bored Ape, for example, you could spend tens of thousands of dollars to access it,” says Nazlawy of Adidas. “Our NFT will be billed a bit more inclusive than that; it’s closer to high end fashion prices.

Once someone acquires an Adidas NFT, they can price it and sell it at the asking price of the market; access would then be transferred to the new owner. This can be a nifty way for brands to gauge interest and build hype; Gucci’s now famous Roblox bags ultimately sold for more than their physical counterparts, while Burberry’s NFT characters for Blankos Block Party were sold at eight times their original value. Nazlawy points out the crypto market’s similarities to streetwear, with an interest in “collect, trade and flexibility”.

NFTs evolve in utility

NFTs first appeared in the form of static digital art and collectibles, and quickly caused fatigue and confusion over one with a digital certificate of ownership. “On the collectibles side, the market is already collapsing,” warns Matt Powell, vice president and senior industry advisor for market research firm NPD Group. “On the authentication side, there are simpler and less costly methods for the environment to verify products. Collecting things that have no intrinsic value beyond speculation seems dangerous. The avatar space would also attract a very small segment of the market, as are collectible sneakers, which also appear to be in decline.