JUST-IN: Nike Ditches NFTs, Doubles Down on Gaming💥

Hi, it’s Marc.

Yesterday, Nike dropped a bombshell: .SWOOSH, its Web3 platform launched 2 years ago, is changing direction.

• Nike's .SWOOSH is shifting focus from NFTs to gaming, partnering with top gaming platforms to offer in-game wearables and exclusive Nike products.
• Starting with a TEKKEN 8 tournament, it will now serve as the hub for all Nike gaming experiences and events.

This marks the end of an era for brand-led NFT experiments.

Let’s unpack this: 👇

By the numbers: 389,568 SWOOSH IDs have been minted on Polygon since November 2022.

Read our case study and deep dive on Nike’s Web3 activation:

Just Do It: How Nike's Industry-Leading Web3 Strategy Marks a New Era for Consumer Brands

Hey, it’s Marc. On 51 Insights we’re publishing obsessively curated field notes and actionable insights to help thousands of Web3 leaders grow their business. Connect with me on LinkedIn. ✌️

51 Insights – Web3 for BusinessMarc Baumann

Flash: Nike's Web3 Update

Hey, it’s Marc. ✌️ Last Friday, Nike revealed major updates to its Web3 strategy. Today we’ll take a short look at:

51 Insights – Web3 for BusinessMarc Baumann

But wait: Nike laid off 1,600 employees (2% of the workforce) in its recent restructuring earlier this year. Including parts of the Nike Virtual Studios team, responsible for .SWOOSH.

Why?

NFTs in their current form didn’t deliver.

Nike’s NFT experiment brought in just $3M. A drop in the bucket compared to their $50B in 2023 revenue. And consumer engagement wasn’t there.

Zooming out: Nike's move reflects a broader trend of brands reassessing their digital engagement strategies in pursuit of ROI and engagement.

Instead of NFTs, Nike will go deeper with their gaming partners to build gaming experiences & in-game wearables.

Be smart: Gaming is the new frontier.

• 70% of Fortnite players buy avatar outfits
• 56% of Gen Z Roblox users care more about styling their avatar than themselves IRL

The death of NFTs for brands?

Probably, for now.

Remember when every brand was minting NFTs? Those days are over for now.

50% of top global brands launched NFT projects (at 51 insights, we tracked all of them).

List of All 180+ Brands in Web3 (with links)

Updated: 10 May 2024

51 Insights – Web3 for BusinessMarc Baumann

Now, 90% of them fizzled out.

Earlier this year, Starbucks announced the end of its Web3 loyalty program “Odyssey”. Odyssey barely broke even.

What's next?

Expect more brands to follow Nike's playbook.

1. Holistic digital strategies replacing standalone NFT projects
2. Emphasis on measurable ROI and solving real business problems
3. Integration of blockchain, immersive experiences, AI, and data

Maja Vujinovic, early pioneer in digital assets and AI, says:

“The new frontier is the combination of AI, smart contracts, and data. This will force businesses to rethink their revenue model which may include sharing some of the profit with consumers. Infrastructure players like Avalanche are at the forefront of this innovation.”

The bottom line?

The NFT gold rush is over.

New technologies works best when they enhance the product experience, not as a standalone features.

Now comes the hard work of building lasting digital ecosystems that truly resonate with consumers.

That’s all for now.

Talk soon,
Marc & Team

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