Nike Proves It Builds Differently With New Web3 Platform "Dot Swoosh"

Nike is quietly building an industry giant in plain sight.

This week, the iconic footwear brand announced the launch of a new platform, Dot Swoosh, to support its continued up-leveling in the digital and virtual space.

While web3 and NFTs have been slaughtered in the recent bear market, Nike has been steadily building and showing a long term conviction in the power of web3.

If we look back in history, Nike is always first when it comes to innovation. They led the charge with redefining athlete sponsorships back in the day, by not just using them as corporate sponsors, but by elevating them to god-like cultural figures. See: Michael Jordan.

Nike was also early in playing with having a simple web page. When other companies didn’t understand the new technology, Nike was playing with it. The same came be said with YouTube. When it was just considered a place to watch trivial cat videos, Nike dropped its athletes into the mix and created viral sensations that transformed how people thought about the platform and what it can do for a brand. See: Ronaldinho Crossbar Challenge and Kobe Jumps an Aston Martin.

Nike did stumble when the Amazon-ification of the world first rolled out, as they still leaned too heavily on traditional retail and distribution. However with the appointment of CEO John Donahoe, former CEO of PayPal, the company completed a full pivot to a digital offense and its direct to consumer business has started to really drive profits.

Maybe this led to Nike’s early bet on the metaverse.

With the splashy acquisition of RTFKT in 2021, Nike signaled belief in the emerging web3 space. A space that makes a natural fit for Nike with its easy analogs in digital and virtual fashion. They even filed all the right patents for creating virtual footwear, “Cryptokicks”, and entire platforms based around the buying and selling of virtual shoes and apparel.

A big issue at play here, is Nike now has a direct path to tap into the robust sneaker re-selling market. How it used to work was people would buy exclusive kicks from Nike, and then turn around and sell them for three, four, ten times more in high end sneaker shops or online. This is big business. And one that Nike can’t get its claws into. However in a world where every physical sneaker comes with a virtual “twin”, there will effectively be a receipt or proof of ownership for every pair of shoes you buy. Cutting out the cheap knockoff market and adding a layer of authenticity to re-selling.

Imagine if you had proof that you owned the first Air Jordan? Or Air Max 1? This kind of social proof, is exactly what the promise of NFTs is built on. People will find value in the virtual authentic sneakers, just the way they pay 10x for sneakers they never intend to wear, but hold onto for investment purposes. Before today, it was a black market. From today, we can see Nike is intending to build a platform and peer-to-peer marketplace where you can buy, sell and trade those virtual sneakers to others.

This has never been done, and it’s hard for the uninitiated to imagine. But it’s basically the fashion and physical goods equivalent of Steve Jobs pulling out an iPod and saying “music will never be the same.” Only in web3, there is this notion of creator royalties and smart contracts that truly have the potential to level the playing field. If Nike can continue to operate in an open source, web3 ethos, this could be a seriously game changing move.

It potentially gives an individual creator the ability to create a Nike shoe, and sell it for others to use across the metaverse, in popular video games, in Roblox, in Fortnite, in a million other games and services and avatars not invented yet. Nike has enable digital sneakers, digital products to go live and have ownership tying back to the individual creators. Not only Nike will benefit from this. In web3, because of the nature of the smart contracts, the financial incentives are spread out.

No longer will you just be a consumer of shoes or jerseys, you will now be a part owner. It’s like a mix of owning the product and a share of the company. It’s a new behavior that is still undefined, but what Nike is signaling and building is nothing short of revolutionary.

It’s like, if you used Amazon back in the day when it launched, and every time you bought something, you also earned a fractional share of Amazon stock. That’s the promise of web3’s mantra: Read. Write. Own.

And in Nike’s case, for fans of the brand, you might also say Read. Write. Own. Just Do It.

If you are interested in Nike, shoes, fashion, digital or simply the evolution of business, ignore this move at your own peril.

Andrew “Oyl” Miller is an advertising Creative Director and Copywriter. He spent 15 years working at Wieden+Kennedy on brands like Nike, PlayStation and IKEA. You can check out his work on his website.

NFT Branding: 101

The cat is out of the bag on the technical side of NFTs (or should I say Crypto-Kitty?) Every day, new services pop up that make it easy to drag, drop and mint your own NFTs. The barrier to entry to create your own digital items is low. And this has led to a flood of criticism that NFTs are a bubble. Who wants to buy all of this crap art?

But just because it's easy, doesn't mean it's easy to win in this space.

Take T-shirts. In the 1950s, if you wanted to sell t-shirts, you had to own or have connections to a factory that physically made them. Then there was shipping. Then there was distribution. Etc. Flash forward to 2022, and t-shirts have been "drag-and-droppified." Technology has eliminated the barrier and the middlemen. Does this mean that t-shirts are a bubble? Does this mean that people will no longer buy t-shirts just because now everyone can make them? No, they'll buy the shirts they want.

People buy t-shirts that fit their style, make them feel cool or fashionable or have some personal meaning to them. T-shirts are a form of self-expression. People will always need to express themselves and differentiate themselves from the people around them. Brands and creators that can use t-shirts as a vehicle to transport their own worldview and ethos, will sell. Generic knock offs., or random t's uploaded to Amazon will get ignored. As in all things; T-shirts to NFTs, it's survival of the coolest. Survival of who can create the most meaning and emotional connection.

NFTs aren't cheesy illustrations of animals. They are units of brand identity. They are signal boosters. Just because you can technically make an NFT, does not mean you're going to make it. The digital items that thrive are just like the t-shirts, lunch boxes, branded candy bars, hot sneakers and cool cars that people keep buying. The creators that imbue their NFTs with meaning and manage to mint culture, will make it. All others will fade away.

Maybe in 2017, the superstars who moved the needle in the space were the coders who technically enabled non-fungible tokens to be created. But in 2022 and beyond, the technical abilities have spread out and are no longer the differentiator. The value and importance of digital items will be in the hands of brands that can put their cultural cool into digital amber, preserving authentic meaning on the blockchain.

There will be low hanging fruit as always. A shallow, profit printing way to get involved at some layer. Think: world-beating IPs like the Disneys, the Marvels, and the imagery that you can put on a pair of underwear and socks and manage to sell out on autopilot.

There will be newcomers, like Bored Apes, who seemingly come out of nowhere, capture the cultural zeitgeist and manage to start up a legacy from ground zero.

There will be niches in every category you can imagine. Artists and musicians who connect with the heart and soul of their fans. This will create a symbiotic relationship where both sides will contribute and benefit from the increased exposure of the creators as they push further into culture.

Those who know branding, will win.

It could be personal brands, legacy brands or new cultural phenomenon brands.

But the ones who rest on their digital laurels at merely being able to technically show up at the NFT table, or who copy and paste derivative ideas onto the blockchain will be ignored. In our attention culture, we crave meaning, story and values. We look for things to cheer for. And we want easy ways to express our values. This is what branding is an onramp for. Without branding and meaning, NFTs are hollow vessels. A collection of directionless pixels taking up space on the vast sea of the distributed web.

Brands with sharp POVs and clearly communicated world views will have lasting power. Just because the medium of communication has changed, doesn't alter the basic rules of branding that have proved successful at each iteration of culture.

Brand your project or be forgotten.

Azuki NFT Releases First Fractionalized NFT

We have hit a wall with NFTs. The word is out. You either love or hate them. But whichever side you fall on, you feel like you know what they are about. And it's either for you or not. Of course those who are writing off NFTs already, are sounding a lot like the people who dismissed the Internet as a fad back in the 1990s.

Yet, even as a convert to NFTs and the potential of web3, I can understand where the hate is coming from. It's like when the Internet only had a few web pages and you had to get access by getting "minutes" on a physical CD. The infrastructure of web3 doesn't exist yet. It forces you to use all of your powers of imagination as to what the space could look like once that infrastructure is built out. Leaving value to the power of imagination alone looks an awful lot like speculation.

But I just ask myself a simple question: Will people's lives become more digital in the future? Or will people start abandoning technology. Will the Internet become the fad that it was predicted to be in the 1990s? If you think people's lives will be more digital than they are today, then that is a vote of confidence for web3.

But if web 3.0 is the destination for mainstream adoption, we will start needing more than imagination and speculation to get us there. This means we need innovation. We don't need cryptopunks version 47. We don't need 394 different flavors of monkeys. We need honest innovation that unlocks the next chapters of this story. We need NFT projects that make people go "oh, I never thought of that." We need NFT projects that move the needle and start filling in the wild imagination of early adopters.

This brings me to a new wave of NFT projects that are standing out. Projects like Azuki NFT, an anime inspired PFP project that comes with a blue chip pedigree and an ambitious roadmap to match. Azuki started out as a series of anime inspired characters and a promise for future metaverse integration. Its members have worked for Marvel and Disney before, and what they are looking to accomplish is directly related to that path. Instead of designing characters that raise the stock prices for Disney shareholders, these creators are looking to mint original IP that will fund their own vision that they will be able to control and profit for. No longer putting their hard labor in for the House of Mouse, they are out to make an impact for themselves. This is the promise of web3. Digital ownership that many can participate and profit in.

The Azuki NFTs quickly shot to the top of the NFT rankings and their floor price quickly vaulted out of reach for most. Which makes their recent offering intriguing. They have just "fractionalized" one of their IP's core characters, a bean farmer named Bobu, and offered those fractions at an affordable mint price for new members to join the community. There were 50,000 such fractions minted and they went fast.

Azuki is promising that the Bobu fractional NFTs will be an experiment in project governance. Effectively creating a DAO based around one of the characters in their world. It's like if JK Rowling suddenly decided that Hagrid was going to be owned by the fans and offered shares of ownership in the character. Holders of the fractional Bobu NFT will be able to vote in the community to help decide the direction of the character. The projects roadmap lists ambitions to create animations, games and even films around the Azuki universe, and Bobu's fate will be fan controlled. This is having a stake in the game. And as word of the project moves forward and sales of the fraction continue to rise, they will keep generating more funding that goes towards fulfilling their future ambitions. It's a brilliant marketing move that has brought more attention to the Azuki brand, and has also lived the spirit of web3 by giving those who missed the initial wave an affordable entry point into the project. It's a show of innovation that could be adopted by other out of reach NFT project like Bored Apes, should they look for ways to acquire new members in a future wave of the project.

It's still early innings for these projects, but every time one project decides to try something new, the whole space can learn and benefit from the attempt. And hopefully, we will see more of these properties taking risks and trying to add new innovations to what they are offering. One of these days, someone will add a new use case that will serve as the springboard to mass adoption of web3. We are still playing in tech savvy, early adopter spaces. But with every new attempt, the mainstream gets a little closer. Innovation is the only path toward opening the floodgates. Because everyone who already cares about NFTs is here and content. It's the 99% that need to get excited about this space, and so far, they haven't seen anything that gives them enough FOMO to join. Yet.

Michael Jordan Enters the Metaverse

Quickly and quietly, things are picking up with basketball legend Michael Jordan's involvement in the web3 space. There have been reports of the hoops icon meeting with multiple web3 and NFT companies over the past months, and now we are starting to see some of the fruits.

Jordan's company that he founded with his sons, HEIR Company, have minted their first NFTs on the Solana Network. The genesis collection is called 6 Rings and consists of 3D bulls with six rings displayed on their horns. The bulls come in various colors and finishes, set against a range of Chicago Bulls colored backgrounds. Each NFT comes with a unique code that the project's Discord community is frantically trying to decode like the DaVinci Code. The codes appear to be linked with the different years that Jordan played in the NBA, but no utility has been revealed.

The details are sparse, but HEIR is promising to create a new era of digital culture, that gives a platform to premium athletes, from high school to the pros, to interact with their fans on a more personal level. Buy in to get this exclusive access will come in the form of athlete NFTs. The 6 Rings collection is considered the "founder token" and will grant early access to subsequent offerings within the app. The app has not been released yet, nor have the roster of athletes been revealed.

Many athletes have jumped into the web3 and NFT space in various capacities. But no one has so far set up an entire company dedicated to the space. MJ and his team, led by his son, seem to looking to create a long turn, new value offer in the emerging web3 and metaverse. With the most iconic and successfully branded athlete of all time setting up the beginnings of a media empire, it's worth taking a look at.

Again, no utility or specifics have been offered at this time. The collection has just dropped and sold out, and there is already frenzied activity on the marketplace as pure speculation fuels the early interest. People are speculating which athletes will be involved, and if at some point there could be a crossover collaboration with Jordan Brand and an exclusive line of sneaker drops. Again, all speculation, but not entirely out of leftfield considering Michael Jordan himself is a part of the company and listed as a strategic advisor. With MJ's connections and clout, any premium collaboration or partnership could be expected in the future.

What gets me excited is the long term thinking. This isn't a one off PFP project, or a dashed off in a weekend project to rug a bunch of fans like we've seen other athletes hastily put together. And it makes sense that Jordan would not go that route. He is famously selective when it comes to where he will allow his image to be used. Not to mention his world-class business and branding acumen that have re-invented the rules in multiple industries on how to market products and services.

As a lifelong MJ junkie, this project is a no brainer. He has never been "just another athlete." He has been the standard bearer and trailblazer that has expertly created and grown every platform he has been involved with. He fueled the globalization and interest around basketball and turned the NBA into the world's second most popular sport after decades of the sport receiving almost second class pro citizenship. He turned Nike into something we'd never seen before with his mix of charisma and marketing savvy alongside the brand and its partners. That he would turn his attention to web3 is not surprising. The money and business opportunities are there. And knowing what a legendary competitor MJ is, you can imagine him sitting back, seeing what other athletes and celebs are doing in the space, and then setting out to blow them away with quality and innovation like we haven't seen before.

I expect MJ to play a role in raising the bar on what an NFT or web3 project can be. If he truly puts his focus on the space, I'm riding with him all the way. Time will tell. But if history is any indication, you don't bet against Michael Jordan once he sets his sights on something.

Street Fashion in the Metaverse

Street fashion might not sound like a perfect analog for the NFT space, yet early on it's seeming like a match made in metaverse heaven.

Lately, Bobby Hundreds, owner of the street brand, The Hundreds, has become an NFT uber-evangelist on full blast across his social channels and podcasts. He's turned into this inspirational, almost Steve Jobs type figure, who has made it his mission to open up the NFT space and personally onboard as many people as possible.

Last year The Hunrdeds had their own NFT drop called the Adam Bomb Squad, consisting of illustrated bomb characters that have graced the brand's streetwear for decades. The founder of Hundreds ah-ha moment was when he realized they were sitting on this deep legacy of IP and a super passionate community: the two main drivers of a successful NFT project. After a few tests, The Adam Bomb Squad was a success. Selling out its first mint and now experiencing a healthy life cycle on the secondary market. This has only fueled Hundreds enthusiasm and conviction in the space. And like I said, he's bringing as many people with him as possible. Including all of his OG streetwear friends, which means street fashion could really be the next big thing to follow art into the metaverse.

Another early streetwear foray into the metaverse famously came from RTFKT and their fusing of meta-video game, hyper aesthetics to create a line of virtual sneakers and become the first famous metaverse fashion brand. Nike took note and acquired RTFKT just when their heat couldn't get any hotter.

Streetwear circles tend to be tight and insular, so it was no surprise, yet also a pleasant surprise, when RTFKT tapped streetwear legend Jeff Staple to bring his game-changing and iconic Pigeon Dunks into the metaverse. The alchemy of the old and new came together to create an instant classic. What must have first felt like an experimental lark for Staple, turned into his own ah-ha moment in the NFT space as he witnessed the awesome community embrace and power that comes when an authentic creator offers something meaningful and heartfelt in the space.

And so after the hype of the drop settled down, Staple is approaching the metaverse again, this time with his own solo NFT project.

Enter the Stapleverse.

A connected community universe built around Staple's iconic Pigeon brand. Here, hypebeasts will be able to mint "Feed" and later have the option to risk throwing their feed to turn it into either a "Pigeon" or "Poop." It's the kind of risk it all layer that we've seen implemented in a few NFT projects. Like the Bored Apes Serum, which takes away your original Ape forever and gives you a brand new Mutated Ape in return.

The website is slick. The passion and creativity leaps off the screen. The art for the first drop is perfectly executed by illustrator B. Thom Stevenson. This week, Chapter 1 dropped. It presents a series of graphics that represents the highs and lows of living in New York. As the project builds out, Staple envisions adding references to new cities around the world to the Stapleverse.

There is a roadmap for the Stapleverse, and it's already clear that Staple has the passion and energy to keep creating in the space. With a known, authentic creator behind the project, confidence rises that this will not be a rug pull. Staple has already been a part of NFT history and now is looking to build off his legacy in the space.

There is a strong psychological connection between hypebeast street culture and NFT culture. Both worlds center around literal "drops" of their products. In both space, catching wind of early hype is credibility and currency, as well as often the difference between those who ape in early and those who live with FOMO in perpetuity.

For those who need the right Nikes that no one else has, or the t-shirt that only came from one single shop, NFTs area a kindred spirit. For streetwear and NFTs are both markers of status. And as our lives turn increasingly digital, it figures that we will need more than just a follower count to signal our status and what we are into. Found out about Bored Apes before anyone else? Your Twitter profile will be the judge of that. Get in on the first Stapleverse drop? Just flash your wallet. From now on, your cool points will be stored on the blockchain, available for all to see and judge. It's Supreme drops, but for the web3 savvy.

You won't see the long mysterious lines of people with insane kicks in questionable New York or Tokyo alleys. Instead, these early streetwear adopters will be going on whitelist quests inside of Discord servers. All hell bent on finding out first, where the the latest cool is at.