The new wave of popularity in tokenized digital assets has pushed many brands to enter the Web3 space, accumulating billions worth of NFT sales. Among these, Adidas’ leap of faith into the BAYC NFT deal has proven to be remarkably successful. In a recent podcast discussion, Erika Wykes-Sneyd, former Global VP of Marketing for Adidas Originals and current VP and GM of Adidas Three Stripes Studios, reflected on taking this risky step, saying that signing with the pseudonymous creators felt right.
In December 2021, Adidas ventured into the metaverse in collaboration with Yuga Labs, Punks Comic, and Gmoney, a pseudonymous NFT influencer. This partnership began when the BAYC collections and the broader NFT space were still quite unstable. Wykes-Sneyd admitted to feeling nervous about potentially losing her job when signing a deal with such anonymous creators. However, she stressed that it aligned with Adidas’ values, and it felt like the right decision at the time.
Bringing the entire Adidas team on board with this nascent technology required extensive Web3 education. According to Wykes-Syned, every team and department within Adidas were involved, and the overall experience has been rewarding for everyone. The company’s Into the Metaverse campaign was successful, selling out its primary NFT drops and raising $23 million, not including the shares of royalties from secondary market sales. Buyers could redeem these NFTs for exclusive physical apparel featuring the branding of all collaborating parties (Yoga Labs, Comic Punks, and Gmoney).
Adidas’ foray into Web3 did not stop with the initial NFT campaign. Instead, the brand has been continuously building its presence in this space. They recently launched a new NFT project called ALTS, which allows “Into the Metaverse” owners to exchange their original NFTs for new Adidas profile pictures (PFP) connected to the narrative campaign. ALTS NFTs may grant exclusive access to future merchandise drops and events.
Adidas’ partnership has proved advantageous for its collaborators, whose values and popularity have grown significantly since the NFT launch. BAYC’s creator, Yuga Labs, raised $450 million in a funding round at a $4 billion valuation and has since initiated several NFT projects. Meanwhile, Punks Comic has been developing numerous IPs, and Gmoney launched a tokenized apparel brand called 9dcc.
While Adidas’ metaverse success story demonstrates how integrating values and taking risks can pay off, questions still arise surrounding the long-term sustainability and stability of these ventures. For now, Adidas and its collaborators all come out as winners in this unique digital sphere. Time will tell whether this winning streak continues as the NFT market and metaverse expand further.
Source: Cryptonews
