Is Web3 Technology Such as NFT A Boon For Shoe Sales?

NFTS aid businesses

Millions are being made by NFTs and this isn’t just about profile pics or pfp projects as they are known in the web3 space. Brands such as Adidas, Nike, Dolce&Gabbana , Tiffany and more are making a giant profit off of the use of NFTs.

NFTs largely have been seen as a passing fad by many and a way to come up by others. The technology has been touted as a scam by some and savior by others as well. There are some that say the platform relies on a sense of FOMO or “Fear of missing out” in order to make sales, and there are indeed many projects that have used this technique to sell out and then “rug” investors.

Recently many companies have opened to use the technology to make a deeper connection to their fan base as other companies have noticed the potential for revenue optimization. More users enticed through merchandise promises and NFT drops bring in big profits.

One of the more successful companies would be Nike. The athletics giant has discovered a way to blend the virtual technology with its own branding rights. Currently the company has raised $185 million from its efforts in NFT sales. Recently the company RTFKT was acquired by Nike for an undisclosed amount. The company was valued at $33.3 million at the time. 

The collectibles studio was responsible for CloneX which was an avatar collection with art by Japanese artist Takeshita Murakami. 

Analytics shared by NFTgators displayed Nike as the biggest earning brand for NFTs with Dolce & Gabbana and Tiffany trailing behind but not nearly as profitable as the sporting giant. 

More data offered by Dune Analytics show that Nike has already surpassed $1.3 billion in transactional volume from secondary sales and purchases of the NFTs with royalties from the project equaling $92 million. The CloneX collection remains at the top of the list of those projects generating royalties at $39.3 million.

Nike continues to dominate in NFT sales with CloneX still creating the most revenue in royalties

Other collections have been successful but not as much as the top 3. CloneX became part of Nike after the RTFKT acquisition and almost two weeks after being on sale. RTFKT is responsible for most of the projects created for Nike and could be seen as solely responsible for the success Nike has had, this has lead many to speculate on the benefits of major companies collaborating with or outright buying web3 companies to create new avenues of content and merchandising.

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