Michaël van de Poppe - 23 March 2022
The NFT Bull
2020 has undoubtedly been the year of NFTs. Billions in dollars were traded and the market grew from a niche to a whole industry on itself. NFTs are appealing as they represent digital ownership and often are a work of art. One of the first catalysts for the rise to power of NFTs was the Beeple sale back in March of last year where a buyer bought Beeple’s work for $69mln worth of Ethereum. What followed was a summer filled with NFT collections popping up and various artists making a name for themselves through this new form of art.
In the last quarter of 2021, there were a lot of different multinationals that were getting involved with the metaverse and NFTs. Names that would surprise you.
In this article, we go over three of these companies and the way they got involved with the space.
Pepsi launching NFTs
First on the list is PepsiCo. The company well known for its beverages is a multinational with a lot of other brands under its wing, among others are Quacker Oats, Gatorade, and Tropicana Products. The company is valued at a whopping $240bln and had a revenue of $70bln back in 2020. It was a surprise for most when Pepsi announced an NFT collection on the 9th of December.
The collection is dubbed ‘Pepsi Mic Drop’ and consists of microphones featuring the colors of Pepsi and individual characteristics. In total there are 1,893 NFTs and the number is symbolic of the foundation year of the company. Fans of the company had to join a waitlist in order to mint one of the NFTs for free, which is a pretty cool gesture.
All in all, initially the move of Pepsi came out of the blue, but it shows the interest of the firm to play in the current trends. We hope to see the Pepsi NFTs make a return during this year, maybe with some cool benefits for the holders, like free drinks in certain areas. After the launch, Pepsi went quiet regarding the collection, but we are sure that this wasn’t a one-time thing.
Adidas collaborating with NFTs
Next up on the list is Adidas. The German sportswear giant also made its entry into the metaverse, but with a whole different approach compared to Pepsi. Adidas originated from Germany but has expanded its brand worldwide. As of writing the company is valued at $50bln and had a revenue of $22bln in 2020. Just like Pepsi, Adidas announced an NFT project in early December.
The collection launched by Adidas has been done in collaboration with some huge names in the NFT scene: gmoney, BAYC, and Comic Punks. All three were of significant influence within the NFT industry, for example, BAYC is one of the most popular NFT collections on the market. The collection is called ‘into the metaverse’ and consists of 30,000 NFTs with a price of 0.2 ETH. Last December (2021) the first phase was started. Throughout this year three more phases will be started and holders of the NFTs can get their hands on exclusive physical merch and digital assets.
Adidas went a step further than Pepsi and gave their NFT more utility as well by releasing them in partnership with some notable names. It is speculated that the NFT will have a role in future metaverse realms, e.g. represent digital merchandise. The first phase, the distribution of the NFTs, occurred last month (December) and little details have been released on the following three phases. This is definitely a project to keep your eyes on!
Nike acquiring NFTs
Last, but certainly not least is Adidas’ main competitor: Nike. The multinational with a market valuation of $263bln had revenue of $37bln in 2020. This company went even further than Pepsi and Adidas regarding NFTs and has acquired a whole NFT studio: RTFKT.
The acquisition by Nike came out of the blue, just days after RTFKT had launched their first major NFT collection called ‘CloneX’. It was done in collaboration with the Japanese artist Takashi Murakami. The launch was a huge success and the floor price for the collectibles is currently sitting at $22,000. RTFKT is an (art) studio focused on digital collectibles and fashion. In the past, they have released NFTs that could be redeemed for limited, customized sneakers. The studio fits perfectly under the Nike brand.
With the acquisition, Nike is now in possession of an established metaverse studio that is specialized in digital collectibles. This allows Nike to position and develop itself as a brand within this realm.
NFTs have spurred quite some discussions between fanatic proponents and critical opponents. Yet, the decisions by these huge multinationals last year contribute to strengthening our conviction that NFTs are here to stay. The metaverse is coming. Check out Facebooks’ 2021 video.
There are various companies developing tools and products related to the metaverse and NFTs will be a part of that world. Fashion and other cultural brands, like Pepsi, Adidas, and Nike, benefit hugely by positioning themselves early and are starting to get involved in this space. We are curious to find out what the three companies are cooking up next and more so what other companies will follow their lead.