Nike Celebrates $1M NFT Sales Despite Botting Allegations

• Nike recently released its first digital sneaker NFT collection.
• The collection launch suffered many delays and technical issues.
• The persistent problems led to a community uproar.
• Despite the rising concerns, Nike still garnered $1 million in NFT sales.

American Athletic Footwear giant Nike continues to pave the way for mainstream companies to embrace Web3 with NFTs. The company has steadily expanded its Web3 strategy to debut its first digital sneaker NFT collection.

While Nike has cemented its dominance with the new collection, which has so far garnered millions of dollars, it has also stirred frustration within the community.

Swishing in Millions

Nike’s Web3 platform .SWOOSH recently launched its highly-anticipated NFT sneaker collection, Our Force 1, drawing inspiration from the iconic Nike Air Force 1 Low, which first hit the market in 1928. The new NFT collection has proven to be a resounding success generating impressive numbers in sales despite facing persistent delays and technical difficulties that tested the community’s patience.

Initially scheduled for launch on May 8, Nike encountered unforeseen circumstances that pushed the “First Access” sale to May 15. Exclusive to users who were airdropped “posters,” the first phase of the sale would allow . SWOOSH’s most loyal community members to buy the NFTs early.

Following the First Access Sale, Nike promised to offload the remaining NFTs from its total inventory on May 10. However, the company deviated from its word, further delaying the General Access sale to May 24.

After much wait, according to PolygonScan, Nike sold 72,000 out of 106,000 NFTs at $19.62 apiece, helping it make an impressive $1.4 million in total sales.

While the initial numbers appear promising, the launch came with challenges. Nike has so far only sold one-third of its NFTs, a departure from its historical trend of physical releases selling out within minutes. This could be attributed to the upheaval in the sneaker and crypto community because of the multiple delays.

Community Backlash.

When Nike launched its NFT sale, the launch was hindered by repeated delays, setting the stage for a frustrating experience that left the community in dismay. The sale website repeatedly crashed, causing significant disruptions during the minting process and making many customers impatient.

Many community members voiced their frustrations, calling out bugs and raising concerns about bots plaguing the system, a recurring issue in Nike’s sales.

In an attempt to calm things down and provide some reprieve, Nike decided to extend its First Access Sale. However, this further delayed the General Access Sale, pumping the frustration of those eagerly waiting to purchase the NFTs.

However, little did they know that despite Nike’s efforts to extend sale windows, the company has yet to sell out all of its NFT. The lack of sales could be attributed to the ongoing processing delays plaguing the website. Some users have even reported being changed for OF1 NFTs without actually receiving them.

.SWOOSH acknowledged the ongoing problems and responded that it “ran into an unforeseen error that held up the minting process” that “also blocked additional purchases.” While the company has yet to give an update, the community’s frustration has since simmered down.

On the Flipside

• Despite building on Polygon (MATIC), Nike doesn’t support cryptocurrency payments for this NFT collection.
• The .SWOOSH platform is currently unavailable in most of Europe.
• It’s unknown if the virtual sneakers will be compatible with avatars in the most popular blockchain games.
• Nike generated a total of $185 million in revenue from NFT sales in 2022, more than Gucci, Tiffany, and Adidas combined.

Why This Matters

Nike is one of the top mainstream brands that has made its mark in Web3. The company’s web3 platform .SWOOSH boasts over 330,000 active users worldwide, leading to the demand for its offerings being very high.

However, the platform’s recent challenges in addressing issues related to bots, processing, and more have brought forth a crucial realization for the company, a need to embrace cryptocurrency payments.