In 2021, when tokenized digital assets were generating monthly sales of billions of dollars, many brands flocked to the NFT arena, but none did it better than sportswear giant Adidas, which collaborated on a high-profile project with Web3-native businesses and personalities. This decision was dangerous, particularly in light of the fact that the entire NFT market was still somewhat young and unstable. Erika Wykes-Sneyd, who is currently the global VP and GM of Adidas /// Studios and was previously the global VP of marketing for Adidas Originals, acknowledged that she was concerned about losing her job after agreeing to the Bored Ape arrangement.
When co-founders Greg “Gargamel” Solano and Wylie “Gordon Goner” Aronow were still totally pseudonymous, Adidas made a partnership with the Bored Ape Yacht Club. This made Wykes-Sneyd uneasy, as did the approval of a purchase of Ethereum (ETH) by a publicly traded business-like Adidas. However, the entire business backed this wager on a decentralized, emergent culture.
The procedure, which involved extensive Web3 training for corporate leadership at the now 73-year-old garment firm, took place over the course of about a year. The treasury and legal departments of the company, however, were also involved. The primary NFT drop of the Into the Metaverse campaign sold out quickly, and $23 million was raised as a result.
Adidas has kept developing in Web3, most recently with the release of ALTS, which allows users of Into the Metaverse to “burn” (or completely destroy) their original NFT in exchange for a new Adidas profile picture (PFP) NFT that is integrated into a narrative campaign. The ALTS NFTs may provide special access to upcoming events and product drops.
The businesses and artists that Adidas collaborated with have expanded ever since the Into the Metaverse release. Yuga Labs, the company behind the Bored Ape Yacht Club, raised $450 million at a valuation of $4 billion and is currently in charge of multiple NFT projects. Punks Comic is creating diverse intellectual property, while Gmoney developed his own tokenized clothing line called 9dcc.
Wykes-Sneyd cited Adidas’ lengthy history of promoting cultural trends that hadn’t yet attained popular acceptance or mainstream recognition, such as hip-hop and the company’s partnership with pioneers of the genre Run-D.M.C. in the 1980s. She claimed that promoting Web3 creators matched the same theme.
Adidas has a history of leading cultural movements, and its entry into Web3 is no exception. Although the Into the Metaverse campaign was a gamble, it was very profitable. Adidas will undoubtedly continue to be a significant player in the NFT area as it expands and changes.