Nike Acquires RTFKT in a Move to Become Leader in Sneaker Metaverse
The big news in the crypto space yesterday was #Nike acquiring RTFKT (pronounced "artifact")
Here's how to think about it. 1 - RTFKT calls themselves a "collectibles studio" in that they design unique digital assets, in collaboration with top artists, in virtual environments. In some interviews, their CEO describes themselves as a "virtual sneaker studio".
2 - Recently, Nike announced a partnership with Roblox which one of the goals was to allow fans to interact with exclusive new designs and co-create new designs.
3 - RTFKTs recent collection "CloneX" and collaboration with artist Takahashi Murakami has already generated more than $65 million in transaction volume. (btw Murakami has worked with Louis Vuitton and Marc Jacobs in the past).
Seen this way, this absolutely fits into Nike's strategy. In short, just like there is a war for digital marketing or logistics talent today, there is a coming battle for creative talent aligned to the virtual world.
And Nike is acquiring talent that is likely thinking more than almost anyone else on how this trend will play out.
Just remember when you think about "who will buy this?"
Trends are set by people that understand how to create buzz, move culture, and create ideas and franchises (like "Nike Air") that last years. You need people immersed in these new worlds to understand what's going on and how the next generation will respond.
It's likely also tied to the fact that they raised $8M from a16z earlier this year. Wait too long, and they raise too much money to make it commercially viable.
All things considered, this is a smart and measured bet by Nike to define and co-create what the world will be doing next, rather than simply following the trend.
