Home Nike shoes Why Nike, Adidas, RKFT and Sneakmart are tokenizing sneakers

Why Nike, Adidas, RKFT and Sneakmart are tokenizing sneakers

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The global sneaker industry is expected to reach a value of $120 billion by 2026 from a current market capitalization of $79 billion. Sneaker giants such as Nike and Adidas are considering sneaker tokenization as the next game, which will create a new digital market for sneakers. With companies like Sneakmart releasing products like Metakicks, which allows users to receive randomly generated tokenized sneakers, the possibilities for using sneakers with blockchain technology are endless. People willing to spend hundreds or even thousands of dollars for a pair of digital shoes could soon make it a new normal.

The Rise of Gen Z and the Sneaker Craze – Shoes on the Blockchain

The global sneaker industry is expected to reach a value of $120 billion by 2026 from a current market capitalization of $79 billion. The footwear industry is a huge opportunity given its rapid expansion across cultures and continents. However, with more and more companies targeting the already flooded sneaker market, sneaker giants such as Nike and Adidas are eyeing sneaker tokenization as their next play, which will create a new digital market for sneakers. For example, when a customer purchases a real pair of shoes, a digital version of the shoe can be created, connected to the customer, and given a crypto token, with the digital shoe and crypto token being a crypto sneaker as a whole.

Last year, collectors and sneaker enthusiasts bought and resold $6 billion worth of sneakers, including limited-edition pairs in the secondary market. Nike’s acquisition of RTFKT studio signals that the next step for the sneaker industry is to dabble in digital footwear, NFTs and accessories using blockchain technology. With companies like Sneakmart releasing products like Metakicks, which allows users to receive randomly generated tokenized sneakers, the possibilities for using sneakers with blockchain technology are endless. NFT mystery boxes contain one random NFT from a collection. Purchasing a Mystery Box gives users the chance to receive a special or rare sneaker product at a relatively low price. Users want to show off their digital kicks, which they created as they do in the physical world or resell them for a profit, illustrating the new era of transformation. With celebrity endorsements such as the soccer pairs created by former international soccer star Didier Drogba, the possibilities for collaboration are endless.

The Rise of NFT Sneakers

Nike sees the acquisition of RTFKT as a way to expand its digital presence and capabilities. Nike isn’t the only company jumping on the NFT bandwagon. Adidas raked in nearly $22 million from the sale of the digital tokens, sold for 0.2 ETH each.

A future where digital sneakers will be an essential aspect of our identities is hard to predict. As everyone from venture capitalists, private equity funds, bankers, chip makers to artists to fashion brands gear up for the metaverse, it seems imminent – ​​and companies like Nike , Adidas and others will be there to make sure our virtual feet aren’t bare. People willing to spend hundreds or even thousands of dollars on a pair of digital shoes could soon turn this into a multi-billion dollar new normal.

It’s hard to pinpoint a future where digital sneakers will be a fundamental part of our identities. It seems inevitable with Nike, Adidas, RKFT, Sneakmart, Meta, fashion brands and everyone else preparing for the metaverse and its impact on our society.

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