On Friday, Adidas completed the minting of its non-fungible token (NFT) collection in partnership with NFT brands Bored Ape Yacht Club, PunksComic and influencer gmoney, as we explored before the drop. Overall, the NFT launch brought in $23 million, but as often happens with innovations, it came with a couple of hiccups. And as we’ll show, Adidas kept only a small portion of the takings.
In total there were 30,000 available NFTs for minting, with 380 retained for Adidas events and 20,000 available for early access to the three crypto partners and those that had received an earlier Adidas POAP token. The remaining 29,620 collectibles sold for roughly $775 each, bringing in almost $23 million. The drop sold out within seconds.
The thing about blockchain is the transactions are transparent. So we can see how the proceeds were divided up leaving little for Adidas.
Adidas nft launch
Progress has been far faster than precedent would suggest, leading to a hype quotient in which sneakers and streetwear thrive. The Adidas project took nine months to develop, meaning conversations were in progress by March.
The first luxury NFT — an art film from Gucci — was announced in May. Since then, momentum is gathering pace across the broader fashion and beauty industries.
Adidas nft launch time
Adidas Originals will officially enter the metaverse with the release of its first NFT (Non-Fungible Token) collection on Friday, just a few days after Nike announced a big deal in the space.
Called “Into the Metaverse,” the collection was created with NFT pioneers Bored Ape Yacht Club, gmoney and the team behind the PUNKS Comic. Owners of the NFTs – on sale Dec. 17 – will receive exclusive access to Adidas Originals experiences and product including virtual wearables for blockchain-based gaming world The Sandbox and other platforms, and exclusive physical product to match— a hoodie, a tracksuit and gmoney’s iconic orange beanie.
Adidas Originals purchased a Bored Ape Yacht Club NFT, named “Indigo Herz,” joining one of the most fervent communities in the NFT space.
Adidas originals nft launch
Adidas Originals have announced the upcoming debut of its NFT collection dubbed, Into the Metaverse, which will be accessible on its Sandbox plot.
The collection’s sale will begin on the company’s website on December 17 at a starting price of 0.2 ether, equivalent to $810 at the currency price.
The digital asset would reportedly be an access token allowing holders exclusive access to future merchandise, virtual and real products, and services.
The German-based multi-national company announced its entrance to the metaverse space collaborating with Bored Ape Yacht Club, Punks Comics, GMoney on December 2.
Adidas is learning from its first NFT drop last week, which is the latest example of the potential shady nature of non-fungible tokens for brands experimenting in the metaverse.
The much-anticipated collection, released in partnership with Bored Ape Yacht Club, brought in more than $22 million in sales.
But Adidas hit issues early on when it opened up the NFTs to early access, with some owners not being able to mint the NFTs, which is essentially the process to turn a digital file into a crypto collectible. It forced Adidas to pause the minting process. It also encountered at least one buyer who far exceeded the limit of NFTs someone could purchase, potentially creating an issue with how many of the tokens were available.
Still, Adidas is deeming the launch a success for its first move into the metaverse.
Adidas nft launcha
But then it’s a different kind of marketing campaign. Each of the three partners received $4.82 million of the proceeds, with PunksComic getting an additional $2.3 million, which happens to be 10% of the overall take. That leaves $6.2 million, which we assume is the wallet that belongs to Adidas, or some other marketing partner.
However, Adidas will end up paying out a chunk of that figure because of the issues encountered.
The first problem was a technical hitch with minting NFTs for Bored Ape holders resulting in a pause in minting.
As a result, many people ended up paying Ethereum gas costs for NFTs that failed to mint because of the glitch, which Adidas said it would compensate for. That won’t be a small amount of money because some of the claims on Twitter were for a couple of hundred and others for thousands of dollars.
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We haven’t done the calculations, so it’s conceivable it could wipe out Adidas’ NFT income.
Another issue encountered is that Adidas wanted to limit the number of minted NFTs to two per digital address but did not manage to stop automated smart contracts from participating. Someone created a smart contract that generated several digital addresses and minted 330 NFTs. The individual ended up spending over $250,000 on purchasing the NFTs and $104,120 on gas fees.
However, items in the collection are already selling for around $3,000, putting the person in profit to the tune of more than $630,000.
Despite the complications, the company’s social media team was very responsive throughout the launch, addressed complaints on Twitter, and rapidly reassured consumers that they wouldn’t have to bear gas costs that result from the minting glitch.
Adidas nft launcher
The foundation we are building with Web3 will lead to new creative opportunities for partnerships, engagement through digital goods and a path towards a more inclusive future.”
The NFTs are on sale Dec. 17 at adidas.com/metaverse and will cost 0.2 ETH. Digital and physical wearables will be available for Into the Metaverse NFT owners in 2022.
This news comes as Adidas rival Nike acquired RTFKT, a digital creator of virtual sneakers, collectibles and accessories, on Monday. The move builds upon Nike’s goal to expand its influence in the metaverse via virtual sneakers.
Earlier this year, Nike filed seven trademark applications related to its goal to create and sell virtual sneakers and apparel.
But the Roblox initiative doesn’t yet involve NFTs.
Back to Adidas, and the acquisition of a Bored Ape is an efficient way to announce its presence in the metaverse and further brand itself as “cool and trendy”, which seems to be what Adidas is going for. Furthermore, the partnership with Gmoney and Punks Comic, names that are mostly recognized by those involved with the NFT ecosystem, highlights that Adidas is not necessarily aiming to launch an NFT product that goes mainstream quite yet.
Adidas also partnered with Coinbase, so more developments are likely in the works.
Music artist Timbaland and a division of Universal Music both have separate projects involving Bored Apes.
NFT influencers who have earned a name in the world of non-fungible tokens.
This blog post shall cover the complete know-how of Adidas NFTs.
What Made Adidas Launch Its NFT?
Before we dive deeper, let us look at some fashion industry statistics by Fashion United.
The global fashion industry is already worth about 3,000 billion dollars, which is significant. It accounts for 2% of the entire world’s GDP. It has a global labor force of nearly 3,384.1 million people.
As per a story shared by FDRA, Adidas is the third biggest apparel brand in the United States.
Adidas is also the world’s fourth most valuable clothing & apparel brand based on its brand value at 14,342 million U.S dollars in 2021 and 16,481 in 2020, mentions Statista.
There are several reasons why Adidas entered the market with Into The Metaverse NFT.