Nike has announced the acquisition of RTFKT, a start-up specialising in the creation of virtual trainers in the form of non-fungible tokens (NFTs). In a mirror image of its rival Adidas, the American brand is investing in the metaverse to seduce consumers
Nike buys RTFKT, an NFTs studio specialized in sneakers
Nike has taken another step into the metaverse. In a press release published this Monday, December 13, 2021, the American giant announced the acquisition of the start-up RTFKT (pronounced “artifact”). Founded in 2020, this studio specialises in the creation of virtual trainers in the form of non-fungible tokens (NFTs). By acquiring RTFKT, Nike is looking to design sneakers and apparel that will be tailored for the metaverse.
“This acquisition is another step in accelerating Nike’s digital transformation and allowing us to serve athletes and creators at the intersection of sports, creativity, video games and culture. We are acquiring a team of very talented designers with an authentic and connected brand. Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and expand Nike’s digital footprint and capabilities,” said John Donahoe, Nike’s current CEO. “
Developed by three partners, the start-up made its name by creating virtual trainers and goodies. To develop its original creations, the firm relies on technologies such as blockchain, artificial intelligence and virtual and augmented reality. To imagine the designs of its works, the firm calls upon a large community of designers and creators.
“This is a unique opportunity to build the RTFKT brand and we’re excited to have Nike’s core strength and expertise in building the communities we love,” says Benoit Pagotto, co-founder of RTFKT. “
RTFKT is now a part of the NIKE, Inc. family. pic.twitter.com/5egNk9d8wA
– RTFKT Studios (@RTFKTstudios) December 13, 2021
“When we first started, we had fun designing trainers inspired by video games,” says RTFKT co-founder Chris Le on his Twitter account. “
In February, RTFKT partnered with street artist Fewocious to design unique sneakers in the form of NFTs. The 608 digital pairs sold out in minutes for $3.1 million. Buyers also received a physical pair as a gift.
“For many years, RTFKT was an undefined collective, working exclusively in the shadows, providing designs and concepts to gaming companies and a few select fashion brands. In 2020, they formed an entity to expand their services,” reads the RTFKT website. “
More recently, RTFKT has also partnered with Takashi Murakami, a Japanese artist who is considered one of the most valued visual artists in the world. The Japanese artist created 20,000 3D avatars for sale as NFTs. The sale generated $80 million. The start-up receives a commission ranging from 2.5% to 10% on the sale of each digital work.
Thanks to these latest successes, RTFKT has announced that it will have generated more than 100 million dollars in revenue by 2021. A few months earlier, the start-up was valued at just 33 million after a fundraising round led by Andressen Horowitz, a major American venture capital fund. In its press release, Nike refrained from revealing the amount of the transaction.
Nike follows Adidas into the metaverse
Note that this is not Nike’s first foray into virtual worlds. In November, the sports equipment manufacturer opened Nikeland, a virtual space dedicated to the brand, in collaboration with Roblox, a free-to-play video game that has more than 200 million monthly active users. The buildings in this world are inspired by Nike’s headquarters. In this virtual world, users can participate in mini-games.
By confirming its interest in the metaverse, Nike is following in the footsteps of Adidas. A few days ago, the rival clothing brand entered the digital worlds by partnering with Bored Ape Yacht Club, Gmoney NFT and PUNKS Comic. Together with its partners, Adidas wants to create a game centred on the metaverse. Earlier, the German brand had already approached cryptocurrency giants Coinbase and The Sandbox.
