From acquiring NFT and digital apparel startup in late 2021, Nike has become one of the most prominent fashion players in Web3. We have witnessed the footwear and apparel giant gradually grow its brand from the physical to digital space. Now, Nike plans to step up its Web3 efforts with the launch of its new platform, .SWOOSH (or dot SWOOSH). The “community experience” platform will offer polygon-based NFTs and will be home to Nike’s virtual products like footwear, clothing, and accessories.
Expanding Into The Metaverse With dot SWOOSH
In May, Nike purchased the ENS name dotswoosh.eth for about $35,000 worth of ETH. The platform is presented as the epicenter for Nike’s Web3 endeavors. The platform is designed to promote the brand’s NFTs and digital apparel, enabling customers to become co-creators and get a share in digital product royalties.
Nike plans to use .SWOOSH is a hub for launching apparel like t-shirts and sneakers for Web3 game avatars. With .SWOOSH, users can also get exclusive real-world benefits like physical apparel or talk with professional athletes.
As per Vogue Business, Nike plans to gradually let new users into the closed platform through the end of 2022. The company might open up user registrations later this week, with plans for the first NFT drop in January 2023.
Furthermore, Nike’s NFT apparel will be minted on the Ethereum sidechain Polygon. This is quite a shift from previous Nike and RTFKT NFT drops which have all been launched on the Ethereum mainnet. Moreover, a Fast Company article suggests that Nike plans to sell NFT shoes on dot SWOOSH for “under $50.”
Nike Virtual Studios Leading The New Web3 Project
The newly established Nike Virtual Studios is the team behind the new .SWOOSH platform. Nike Virtual Studios is a separate entity inside Nike, and its goal is to develop the Nike Brand in Web3. In fact, it has a unique design team solely focussed on creating virtual Nike products.
“We are shaping a marketplace of the future with an accessible platform for the Web3-curious,” says Ron Faris, GM of Nike Virtual Studios. “In this new space, the .Swoosh community and Nike can create, share, and benefit together.”
Moreover, an RTFKT representative revealed in a tweet thread that the RTFKT team would also aid Nike as it further expands into Web3. RTFKT also announced that Nike would release digital apparel for CloneX NFT avatars. Consequently, owners could use them in supported NFT games and metaverse worlds.
Nike’s Push Into The Web3 With RTFKT
About one year ago, Nike made its first significant push into the NFT space by purchasing RTFKT. After that, CryptoKicks marked the first Nike and RTFKT collaboration, which can be modified using skin vial NFTs. The Ethereum-based digital NFT sneakers were launched on OpenSea, and the NFTs traded for over 2.9 ETH!
RTFKT is best known for its CloneX NFT avatars, which were created in partnership with renowned artist Takashi Murakami. Launched in November 2021, the project has generated over $762 million in secondary sales volume.
According to the NFT Brand Case Study by Dune, Nike has accumulated over $93 million in primary NFT sales to date. Also, the apparel giant has earned over $92 billion in royalties from NFT trading. In fact, the CloneX NFT avatars accounted for half of that revenue, demonstrating how vital the RTFKT acquisition was to Nike’s Web3 strategy.