Nike Made How Much?

Breaking down how much money Nike & others are making in the Web3 World...

GM frens,

It’s been another fun week in the Web3 World with many of the top collections slowly climbing back to their historical highs.

This increased activity is good news for the brands building in Web3, and in today's edition of The Ground Floor we will be breaking down some of the biggest brands in Web3.

Nike Made How Much?

Breaking down how much money Nike & others are making in the Web3 World...

2021 was arguably the most significant year in the short history of NFTs.

During this time, many brands such as BAYC generated significant amounts of revenue, and close to the top of the list of the biggest benefactors from Web3 was Nike.

Nike’s Web3 Playbook

Nike have been aggressive in their expansion into Web3, and this bold bet seems to be paying off generously for the $177 billion dollar brand.

In December 2021 Nike acquired RTFKT — an experienced Web3 team who’s 20,000 collection CloneX that was created by one of the most influential Japanese artists in the world today, Takashi Murakami had reached a 3 ETH floor price prior to the acquisition.

Acquiring an existing collection put Nike in a unique position whereby they were able to generate a significant amount of revenue overnight courtesy of capturing 5% of all secondary sales from the CloneX collection in perpetuity.

(The CloneX Collection Artwork)

9 Figures Later

Counting the revenue of RTFKT pre-acquisition, this unique strategy has allowed Nike to generate a total of $185.35 million in revenue from NFTs — an astonishing amount.

Are these sales sustainable?

CloneX continues to push the envelope of innovation in Web3 which is more good news for CloneX token holders who have been showered with airdrops to date.

In addition to receiving physical merchandise tied to their NFTs, RTFKT has provided token holders with items that provide augmented reality experiences.

With the support of one of the most successful brands in the world whose existing customers are likely the right demographic to join the Web3 World — we remain very bullish on the collection of Web3 products Nike will continue to create with RTFKT.

Who Else Is Making Money?

Nike is by no means the only established brand making moves in Web3.

Next on the list was Dolce & Gabbana with $23.14 million in primary sales, and $2.53 million in royalties from secondary sales of $20.26 million.

Tiffany was next in line with $12.5 million in primary sales, however, with 0% royalties they made $0 from $3.38 million in secondary sales.

Both Gucci & Adidas have also been big benefactors of the rise of NFTs, with Gucci receiving a total of $11.56 million, and Adidas receiving a total of $10.95 million.

Looking Forward

We are witnessing the Web3 World mature very quickly, with many established brands in the clothing & jewelry industries actively making moves to create new revenue streams.

In recent weeks we have been impressed with Tiffany & Co's entrance into the Web3 World, however, there's a clear difference between doing a single drop vs dedicating an entire team to focus on the development of additional digital assets to create an ecosystem.

For this reason, out of all the established brands that have made moves into the Web3 World to date, Nike stands out as the clear leader — whose success in this emerging industry has been made possible by their acquisition of RTFKT.

3 Things You Need to Know

1) $90,000 In 16 Days 

The majority of NFT collections might be down from their all time highs, however, this bull market hasn't prevented one NFT trader from making a cool 57.38 ETH profit in 16 days.

16 days ago, one collector minted DigiDaigaku #379 free of charge, before selling it for 0.813 ETH later that day, however, we suspect these celebrations will be short lived with the buyer successfully selling this NFT for 58.2 ETH — 71x what they paid for it within 3 weeks.

Following this sale, the seller quickly cashed out their winnings.

It remains unclear what the buyer intends to do with this asset, however, the good news is that the project in question was created by two famous game designers Gabriel Leydon and Halbert Nakagawa who have built several billion dollar games throughout their careers.

2) More Top Tier Talent

This week, the famed game designer Will Wright (creator of Sim and SimCity) announced he has raised $6 million USD to build simulation games built on the Web3 rails. 

This is one of the many reasons why we are incredibly bullish on blockchain games.

3) The Pudgy Penguins Are Back

Pudgy Penguins have been on a run this week, following the highest recorded sale to date with a buyer spending 400 ETH ~ $640,000 to acquire this rather unique penguin. 

What makes this Penguin so unique? 

While every other Pudgy Penguin is posed looking right, this is the only Pudgy Penguin looking left in the collection of 8,888 Penguins.

Food For Thought 💭

Should NFT collectors be forced to pay creators royalties on every purchase?

This question has become one of the hottest topics in the Web3 World in recent weeks, following X2Y2's decision to set creator royalties to 0% 

The X2Y2 NFT marketplace recently surpassed LooksRare as the second most popular platform by transaction volume, accounting for more than 30% of NFT transaction volume.

Eliminating these fees offers X2Y2 a clear competitive advantage in that they can sell NFTs at lower price points, however, many believe that this approach goes against everything Web3 stands for whereby creators are able to participate in this better business model.

Personally, we are in agreement with Beeple on this one — the onus is on creators to build a collector base of people that want to honor royalties, as opposed to forcing people.

Community Update

Floor will be hosting a Fantasy Football League that is free to join! Join our discord to catch up on the latest announcements around the league. 

We are excited to follow this upcoming season and have a lot of fun prizes to give away!

The Ground Floor Feedback 

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See you next time! — OB1 & Pet & Corwin

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