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Nike and Adidas Are Dipping Toes Into the NFT Market. The Sneakerheads Are Into It.

Non-fungible tokens, or NFTs, are a lot like sneaker drops: They come in limited quantities, depend on sky-high demand and stir speculative crazes in the resale market. It should come as no surprise, then, that Nike , Adidas and Under Armour have dipped their toes into the market. Can they hit the ground running?

NFTs are digital assets—art, videos, anything that can exist digitally—that are tradable but not “fungible,” meaning they are unique and can’t be exchanged for an identical asset. A dollar or barrel of oil is fungible, a piece of art or a home isn’t. For brands like Nike or Adidas, NFTs could take the form of a collectible digital sneaker or one that an owner might actually wear in the virtual realm—say, in a video game or in the metaverse. In some cases, an NFT comes with both the digital shoe and the right to a future delivery of a real one, serving as a kind of tradable ticket for the physical product.

Nike and Adidas Are Dipping Toes Into the NFT Market. The Sneakerheads Are Into It. Source link Nike and Adidas Are Dipping Toes Into the NFT Market. The Sneakerheads Are Into It.

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