Nike is known for its innovation in the sports industry. This is demonstrated by its acquisition of CloneX, a company that specializes in the creation of digital assets using blockchain technology. With this acquisition, Nike hopes to increase its brand visibility among young people and make it easier for them to purchase their favorite sneakers online without having to deal with the hassle of going through an offline store or making a phone call to get an order placed.
According to data from @KingJames23 (Dune Analytics), Nike is currently generating $185.31 million in total revenue from its multiple NFT collections (Nike, Clutch, and Icons).
The majority of that large revenue share comes from the acquisition of CloneX, however, Nike is still very much profiting off its acquisition.
While some major brands are capitalizing on NFTs, most are still playing catch-up in comparison to Nike in terms of revenue. For example, Dolce & Gabbana is the second most popular brand on the list with almost 9,100 transactions and $25.65 million in revenue.
As Nike dominates, other athletics and fashion companies round out the top five of the list. In succeeding places were Tiffany (12.62m in revenue), Gucci (11.56m in revenue), and Adidas (10.59m in revenue).
D&G leads with over 9,000 transactions; Gucci comes in second with almost 4,000 transactions; Tiffany manages to earn more than Gucci from just a mere 74 transactions; while Adidas close out the top 5 with over $10 million in total revenue but the second most amount of transactions at over 51,000.
Even in a bear market for crypto and NFTs, it seems that major corporations and brands are still investing resources into crypto and NFTs which is good indicator for the future of NFTs. Many still see NFTs as a fad however with strong evidence of profitability, I doubt that companies will rotate away from NFTs.
Nike is testing of how to incorporate NFTs into their company, potentially giving NFT holders exclusive access to Nike clothing & footwear. Nike has always been known for its innovation and style, so it would be a fit if they incorporated digital assets like AR/VR into their products as well as other digital assets such as games and video content. This could be an excellent way for them to expand their brand while also benefiting from new technology trends like blockchain technology which seems to be gaining new traction as the market slowly recovers.
Nike's decision to invest and create a blockchain-based product could be interpreted as a way to show investors and the public that they have confidence in the future of crypto and blockchain technology. Whilst also highlighting their commitment to being at the forefront of innovation by providing customers a potential new way to "Just Do It."
NFTs have been a hot commodity for brands, but the rate at which NFTs are being promoted has slowed significantly. In fact, the current state of NFTs seems to be relatively unchanged.
According to data from Finbold and published by DEXterlab on July 21, over 30% of crypto users revealed they ‘will never buy’ an NFT.
Even though 2021 was a good year for NFTs, the future for NFTs is not certain in either direction. I am hopeful that NFTs will comeback when people feel more comfortable investing in alternative assets.
The future of NFTs is uncertain. But I can guarantee following a good investment strategy will bode well for any investment.
If you're thinking about buying a NFT, it's important to have some sort of strategy in place before you go shopping. So here are five tips for making sure you get the most out of your purchase:
1) Do your research. Know what you're getting into with your purchase, and know how much it's going to cost you. Do some digging online and make sure you're ready before making a decision.
2) Have an exit plan in mind. If something goes wrong with your NFT, where do you want to go next? Is there another way to get what you want? Or are there other ways to use it (and maybe even make some money)? If not, how much time and money do you think this purchase is going to take away from other activities?
3) Make sure the developers are serious about keeping their promises. It's one thing if they give you some cool stuff that doesn't actually exist yet; it's another thing if they tell you they'll deliver something that never arrives or doesn't work as promised—that's just bad business.
4) Be patient. Do not just buy the first NFT you see in a collection. Take your time analyzing the collection, find a good value within the collection. Get to know people within the community and understanding you are not just buying a piece of digital art but typically you are joining a community. That community will most likely decide the value of your NFT and the future of the collection.
5) Trust your gut. No one knows the next Bored Ape Yacht Club, though I do have my guesses. It is okay if after all your research you are still sold on a project, go for it, just understand that you could lose money. If that foundation is understood and set, that you will be setting yourself up for success.
