Newsletter #191: Missed Opportunity
Imagine a future where NFTs redefine cultural engagement
This week’s featured collector is FichiDigital
FichiDigital is an artist whose NFTs live on Polygon. Check out their artworks at lazy.com/fichidigital
What’s Fueling the NFT Boom?
Last week’s poll highlights an optimistic view of the factors driving the NFT boom, with 67% of respondents pointing to the post-election crypto market rally as the primary catalyst. This suggests that broader confidence in the cryptocurrency space is spilling over into NFTs, creating new opportunities and enthusiasm. Meanwhile, 33% credit the growth to increasing trust and excitement among collectors, reflecting a sense of community and belief in the long-term potential of the space. While other factors like blue-chip collections or ecosystem growth didn’t resonate as strongly, the results paint a picture of a market thriving on collective optimism and broader financial momentum..
Nike’s Missed NFT Opportunity to Redefine Branding and Innovation
At FastCompany, Grant McCracken and Marcus Collins' recent article delves into Nike’s surprising decision to shut down its virtual sneaker label, RTFKT, despite the brand generating $185.3 million in NFT sales revenue in just three years. The move, which has sent shockwaves through the NFT and digital fashion communities, is described as both a "cautionary tale" for brands pursuing innovation and a strategic misstep by a company once seen as a pioneer in blending technology and fashion. According to the authors, RTFKT wasn’t merely a foray into NFTs—it was a “breathtaking technical accomplishment” and “a glimpse of the future” for Nike and the broader fashion industry.
The article highlights the context in which Nike acquired RTFKT in December 2021, at a time when Web3 technologies such as NFTs, AR, and VR were hailed as the next big thing. However, McCracken and Collins note that the acquisition occurred before the rise of generative AI tools like ChatGPT, which has since shifted the innovation narrative. Nike’s financial circumstances have also changed since then, with former CEO John Donahoe stepping down after poor sales performance that ironically stemmed from what the authors describe as “a lack of innovation.” They explain that corporate America’s focus on short-term performance metrics often leads to “tidying the house” at the expense of future breakthroughs, arguing that “brand innovation requires a long-term time horizon” that is often at odds with quarterly results.
RTFKT, the authors argue, was more than just a business unit; it was a redefinition of what branding could mean in the digital age. Products like the Cryptokicks IRL sneakers and the AR Genesis hoodie were examples of how augmented reality could revolutionize not only fashion but also cultural storytelling. The Cryptokicks sneakers, for example, featured a moving brand logo visible through AR glasses, which the authors describe as creating “shoes with news.” Similarly, the Genesis hoodie came equipped with NFC chips that allowed AR-enabled glasses to display wings or other animations, transforming wearers into walking, interactive canvases. Fashion tech journalist Maghan McDowell, quoted in Vogue Business, described these innovations as “physical-plus-digital wearables,” showcasing how brands could merge the digital and physical worlds to create entirely new consumer experiences.
McCracken and Collins paint a vivid picture of the potential these technologies hold, envisioning scenarios such as a poet wearing a digital hoodie that visually displays their creative process in real-time or augmented reality glasses that reveal hidden layers of cultural expression embedded in everyday fashion. "This augmented reality is really going to augment reality," they write, emphasizing how RTFKT was not only about selling products but also about expanding the possibilities of storytelling, culture, and creativity.
Despite these advancements, Nike ultimately decided to pull the plug on RTFKT, a move the authors see as emblematic of corporate America's broader failure to nurture long-term innovation. They argue that the closure represents a “big, fat strategic error,” writing, “Perhaps the biggest issue for Nike—like much of corporate America—isn’t a lack of innovation as much as a lack of patience and curiosity.” By abandoning RTFKT, Nike may have missed its opportunity to lead the charge in creating what McCracken and Collins call “brands that give,” where branding moves beyond attention-grabbing tactics to become a vital source of cultural production.
For NFT collectors, the article serves as both a reflection on what could have been and a call to action for fostering patience and creativity in the integration of NFTs, AR, and branding. McCracken and Collins leave readers with a provocative vision of a future where NFTs could help redefine cultural engagement: "Now we can make sneakers, hoodies, dresses, and entire cities sing with meaning. The difference for branding is big."
To explore this thought-provoking analysis in full and reflect on what Nike’s decision means for the future of NFTs, read the full article for deeper insights.
Was Nike Right to Shut Down RTFKT?
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