Through RTFKT, the NFT and digital apparel startup it purchased in late 2021, Nike has been one of the most significant players in the fashion sector in Web3, and we've seen the clothing giant steadily introduce its own brand into the space as well. With the introduction of a new platform called .Swoosh, Nike now seeks to intensify its efforts.
The .Swoosh platform is positioned as the focal point of Nike's Web3-related digital initiatives. It is intended to draw attention to the company's NFTs and virtual apparel initiatives, as well as upcoming opportunities for customers to participate in the creation of new products and earn royalties.
Nike will use the platform as a hub to introduce virtual clothing for avatars that can be used in Web3 games, such as t-shirts and sneakers. Additionally, it will make use of Web3 technology to give consumers access to tangible advantages like special physical clothing or conversations with professional athletes. Other well-known NFT projects, such as one from Adidas, provide tangible goods or practical benefits.
According to Vogue Business, the corporation intends to progressively allow more users onto the closed platform through the end of the year, prior to the first NFT drop in January 2023. Later this week, Nike intends to start accepting user registrations.
While earlier Nike and RTFKT drops were all released on the Ethereum mainnet, the NFT clothing from Nike will be produced on Polygon, an Ethereum sidechain network. Nike reportedly intends to sell digital sneakers for less than $50 per pair, according to a Fast Company piece.
Ron Faris, Nike Virtual Studios GM, stated in a release:
“We are shaping a marketplace of the future with an accessible platform for the Web3-curious."
A RTFKT official stated in a tweet thread that the studio is assisting Nike as it develops deeper into Web3 and is not in charge of the .Swoosh project. Nike will also release digital clothing for RTFKT's CloneX NFT avatars, which their owners will be able to utilize in supported Web3 gaming and metaverse settings, the company noted.
A blockchain token called an NFT might signify ownership of a certain digital asset like a profile photo (PFP) or avatar, collectibles, or virtual clothes. By purchasing RTFKT (pronounced "artifact") in December of last year, Nike launched its first big foray into the NFT industry, which exploded to $25 billion in trading volume in 2021.
Since then, Nike and RTFKT have worked together to create CryptoKicks, which are Ethereum-based digital NFT sneakers that can be customized with Skin Vial NFTs. In May, Nike paid roughly $35,000 in ETH for the Ethereum Name Service (ENS) dotswoosh.eth. An ENS name can be used to direct users to specific websites or digital wallets.
The CloneX PFP project, developed by RTFKT in conjunction with renowned artist Takashi Murakami and introduced in November 2021, is the company's most well-known endeavor. According to data from CryptoSlam, the project has so far created a secondary market trading volume of almost $762 million.
Nike has made $93 million in core NFT sales and another $92 million in NFT trading royalties, according to public blockchain statistics compiled by Dune. CloneX and other RTFKT releases with non-Nike brands accounted for the majority of that money.