Nike Shifts Away from Web3 Innovation

This announcement comes out few days after Lacoste reassessment of their UNDW3 program.

And this is a major step back for web3 industry!

Nike recently announced plans to lay off around 2% of its workforce, including key leaders across technology and marketing. 

While the full impact remains to be seen, these cuts likely signal a move away from Nike’s ambitious Web3 initiatives as it focuses more on products and core revenue streams.

Just last year, Nike was charging full speed ahead in the Web3 space. It acquired digital fashion startup RTFKT, launched its own Web3 studio called Nike Virtual Studios (NVS), and rolled out NFT sneaker collections. The goal was to tap into new revenue opportunities and strengthen connections with younger, tech-savvy consumers. 

However, the NFT market has cooled significantly from its 2021 peak. Nike made an estimated $3 million on its first NFT drop, a relatively small return given the substantial investments required to build NVS and other Web3 capabilities. As sales growth slows and profits decline, risky bets on emerging technologies become harder to justify.

It remains to be seen whether Nike will eventually pick back up with its digital innovation once economic conditions improve. But for now, its layoffs and strategic shifts indicate the company is pulling resources from NFTs and metaverse experiences to focus on products and performance in the physical world. The Web3 revolution will have to wait.

Why is it a step back for web3 industry overall?

– For people not in web3 and looking to this space (like most marketing directors), Nike was seen as a lighthouse of success, if not the only best case in this area.
– For people engaged in web3, it becomes much tougher to build programs with real added value. As both Nike and Lacoste were good examples of what can be done today with NFTs