Nike Celebrates $1M NFT Sales Despite Botting Allegations

Nike’s new NFT collection has led to many community members growing frustrated while it garners $1 million.

Lots of Nike NFT shoes pile on top of each other.
Created by Gabor Kovacs from DailyCoin
  • 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 garnered millions of dollars so far, 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. 

Sponsored

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 buy the NFTs early. 

Following the First Access Sale, Nike promised to offload the remaining NFTs from its inventory on May 10. However, the company deviated from its word, 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 dismayed the community. 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. 

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 update, the community’s frustration has since simmered. 

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 whether virtual sneakers will be compatible with avatars in the most popular blockchain games.
  • Nike generated $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. 

Catch up on what Charles Hoskinson is saying about Cardano: 

“Cardano Will Be More Decentralized Than All Crypto”: Charles Hoskinson on Summer Expectations

Read more about Nike’s NFT launch: 

Nike Launches Air Force 1 Virtual Sneaker NFTs on Swoosh 

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.