Phygitals: The Future of NFTs and Sneaker Collecting
While the term “phygitals” may not have longevity, the concept behind it seems to be here to stay. A prime example of this is the non-fungible token (NFT) universe created by Nike and RTFKT, which has generated over $1 billion in trading volume and more than $100 million in earnings in less than two years.
According to data from The Block Research, Nike-RTFKT NFTs have driven close to $1.4 billion in trading volume since December 2021. Additionally, RTFKT’s various collections, including the CloneX-Takashi Murakami avatar NFT drop, have earned $170 million, as reported by DefiLlama.
NFTs Unlock Exclusive Opportunities
While a significant portion of these numbers can be attributed to the success of the CloneX collection, the trading volume and earnings from other collections are still noteworthy. Owning these NFTs has allowed consumers to access limited-edition Nike shoes with embedded authenticating tags, attracting thousands of sneakerheads and even NBA star LeBron James.
A Sneaker Collector’s Perspective
“The quality is really, really good. I’d say better than any of the other Nike shoes that I have,” said Frankie Sutera, a long-time sneaker collector and NFT enthusiast. Sutera has purchased nine pairs of Nike-RTFKT shoes after acquiring the necessary NFTs.
During the recent “forging” event, Sutera ordered eight pairs of special-edition RTFKT Air Force 1s and one pair of the Dunk Genesis Cryptokicks. These limited windows allow token owners to order physical shoes of their choice. The Dunk forging event saw trading for the required NFTs reach $613,000 in October, a significant increase from September’s $85,000.
Excitement and Enthusiasm for Nike Cryptokicks
Various individuals in the NFT community have expressed their excitement and enthusiasm for RTFKT’s work. Cole Villemain, co-founder of the Pudgy Penguins NFT collection, posted a video showcasing his unboxing of Air Force 1s during the Dunks forging event. The forging event generated significant interest, with some individuals reselling the shoes on secondary markets like eBay for up to $1,000.
Nike’s Acquisition of RTFKT
Although Nike’s acquisition of RTFKT in 2021 boosted the NFTs-tied-to-limited-edition sneakers business model, RTFKT had already sold tokens and shipped sneakers before the acquisition. In early 2021, RTFKT sold $3.1 million worth of NFTs in just seven minutes. These NFT owners could redeem them for actual shoes, which now sell for thousands of dollars online.
The Tokenization of Real-World Assets
The trend of tokenizing real-world assets extends beyond shoe companies like Nike, Adidas, and Puma. Other industries are also exploring this concept to ensure authentication and offer exclusive content. Blockchain technology enables authentication through smartphone-accessible chips or tags attached to physical items.
Sutera particularly appreciates the NFC tag that authenticates the Nike-RTFKT Air Force 1s as it proves both authenticity and ownership through a corresponding NFT linked via smartphone. This authentication feature helps combat counterfeit markets.
Hot Take: NFTs Revolutionize Sneaker Collecting
NFTs have revolutionized the sneaker collecting industry by combining digital and physical elements. The success of Nike and RTFKT’s NFT universe, with its billion-dollar trading volume and exclusive opportunities, demonstrates the power of this innovation. As more companies embrace the tokenization of real-world assets, we can expect to see further advancements in authentication and ownership verification. NFTs have the potential to reshape various industries beyond sneakers, offering new possibilities for collectors, enthusiasts, and consumers alike.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.