Category: News

If there is any consumer brand that has been very passionate about NFTs, it is Nike. After releasing its own NFTs, the apparel company has launched its own dedicated NFT platform which hints at exciting new projects to come. 

But surprisingly, Nike’s latest NFT-focused endeavour is grounded more in the material world than the digital. As has been reported, RTFKT, Nike’s NFT arm, has released a new project called Cryptokicks iRL. This project sees Nike’s now-famous NFT sneakers called ‘Cryptokicks’ being launched as real-life wearable sneakers. In an interesting reversal of the typical, an NFT is being turned into a real-world item rather than the other way around. 

“Accelerating Nike’s culture of innovation, the Cryptokicks iRL is the first native Web 3 sneaker featuring the latest technology, which combines decades of Nike Sneaker innovation, with RTFKT’s vision to merge the digital and physical worlds.,” a statement from Nike says. 

Wear Your NFT in Real Life 

As per the official announcement from Nike, these sneakers can be customized with four different colourways and shown off in the real world. These are Blackout, Ice, Stone, and Space Matter. When the sneakers are purchased, they come with an NFT that shows its own colourway. And that’s not all. Far from your basic footwear, the Cryptokicks iRL has wireless charging, lights, and even an app that lets its owner connect to it virtually.

A Nike sneaker is already a status symbol but a limited edition one like this is sure to be a hot seller. 

So how do you get your hands on one of these sneakers? Well, Nike has unveiled two channels, both of which are tied to its NFT, naturally. Those who already hold assets from the RTFKT Lace Engine NFT collection will be allowed to purchase multiple of these sneakers at a price of 0.38 ETH, with 19,000 in total being made available. 

And for those who don’t hold one of these NFTs, a draw will be held from December 7 to 9, 2022 for a chance to buy the leftover sneakers on December 14, 2022, at a price of 0.5 ETH. While Nike’s sojourn in the NFT space is relatively new, this Cryptokicks iRL shows the direction the company could possibly take moving forward, which is connecting the material and digital worlds seamlessly. 

What Nike Can do with NFTs

Oftentimes, when we think of consumer brands launching NFT projects, we think of a physical item being turned into NFTs as we’ve seen many times in the past. But Nike is clearly putting a spin on this by taking something that is NFT-based the turning it into a physical item. 

Considering the company’s ambitions, it will not be surprising if we end up having physical shoes that are based on NFT which are, in turn, based on physical shoes in a sort of inception-type commercial self-reference. 

And should other apparel companies take note of this, sneakerheads and NFT lovers will have a wealth of options to choose from both in the metaverse and in the material world. 

If you’ve been dealing in digital assets for a while then you’ve probably heard of Ledger. Ledger has developed some of the most popular crypto cold wallets over the years and remains a favourite within the industry. A cold wallet is a digital asset storage solution that is not connected to the internet, which means it is less susceptible to hacks. Needless to say, it has been very well-loved among crypto holders. 

Now, NFT lovers can enjoy the same perks as Ledger has announced the launch of an NFT cold wallet. 

Securing NFTs 

The new NFT wallet is called the Ledger Stax and in its development, the company tapped into some legendary talent. More specifically, Ledger collaborated with Tony Fadell, who is the designer of the iPod. Together, a sleek design with a curved E Ink display was unveiled that displays the NFTs in the wallet, even when it is not in use.

Also notable is the fact that upon the purchase of one of these wallets, users get an Infinity Pass, which can be used to redeem an NFT. This NFT, Ledger says, will come with utility at some point in the future. 

The Ledger Stax is due to be released next year, though customers can already pre-order it. Once they get their hands on one of the wallets, they can store, view, and manage their asset portfolio with ease. This product is also coming at a very convenient time for the NFT sector. Over the years, millions of dollars worth of NFTs have been stolen from their wallets, both from celebrities and ordinary people alike. 

Crypto holders have had the option to store their assets in cold wallets for years and now, NFT users can do the same.

“With the Ledger Nano series, we created the most successful digital asset security hardware of all time—with more than 5 million sold and none ever hacked. Digital assets are increasingly about identity and digital ownership, not just crypto like Bitcoin. The time is now for a device for more mainstream users. At the same time, we must not compromise on security,” said Pascal Gauthier, the CEO and Chairman of Ledger in a statement. 

While this is its first NFT wallet, this is not Ledger’s first foray into the NFT space as a whole. 

Previously, it had launched its own NFT collection which was very well received in the market and clearly, ledger plans to continue on this path.

The Need for this Wallet

Ultimately, the biggest beneficiary of this wallet launch is not even Ledger itself but NFT users. Once they are able to put their assets in cold wallets, many can ensure that their assets are not stolen (as the company says, their wallets have never been hacked before), as well as those who want simply to store their NFTs long-term.

This will offer an unprecedented level of security for a burgeoning sector that has been targeted heavily by criminals over the last year especially. 

If we think about it, NFTs seem like the stuff of science fiction; they are digital assets that cannot be replicated entirely, can be transferred seamlessly and are permanently on a blockchain. While we are using NFTs in 2022, they could fit right in with a science fiction piece set 1,000 years in the future. 

As such, novelist Rick Talbot’s new science fiction trilogy, which comes with accompanying NFTs, is a perfect fit. The author has made history by releasing his books with an NFT tied to each purchase and even a platform through which they can be redeemed. 

Details About the Trilogy

The trilogy that has been released by Talbot is titled ‘Acts of Love in Faraway Places’ and this is tied to a new platform called Chainreads.com. Not only can books be bought on this site but NFTs can be minted as well.

And these NFTs aren’t just for sentimental value; the copyright and ownership information is included in them meaning that they can be regifted. Then there is the benefit that this sort of site offers authors in that they can sell and connect with their readers without going through a publisher as a middleman. 

This is similar to the sentiments that we’ve seen surrounding educational NFTs and the benefits they give educators. In some of the newest educational NFT releases, several creators have noted how they have more creative and financial control of the content they publish. And as the author himself has said, the ebook sector could get a lot of benefits from NFTs. 

“My goal with this website is to show people how blockchain and NFTs can transform the eBook world. Since most people don’t use crypto today, I made the NFT optional.  […] Using blockchain and NFTs, we can make the book world more transparent and equitable, allow authors to have better control over their work, and remove some of the roadblocks that face authors who live outside of North America,” he said.

This is certainly a very interesting concept in that while it allows readers to buy the books they want, they are not forced to buy NFTs as well. It also acts as a sort of introduction to digital assets that can be leveraged even more in the future. 

As we have seen many times, fans of famous franchises will happily pay top dollar for their NFTs. From Baby Shark to Batman, NFTs connected to major IPs have already proven to be a success. Imagine if book releases were also paired up with NFTs. 

The possibilities would be endless. 

NFTs of all Trades

Just when you thought NFTs couldn’t be used in any other pieces of media, someone comes along and shows that there is truly no end to their potential applications. What Talbot has done could open up more opportunities for NFT use among authors and only time will tell where this leads. 

Hopefully, it will lead to NFTs coming to a bookstore near you.

If there is any industry that has readily embraced NFTs, it is the sports industry. From individual clubs to entire leagues, all sorts of sports-related institutions have released NFT collections and even entire platforms. And with the ongoing FIFA world cup, we have seen even more of these sorts of projects. 

For example, Coca-Cola has recently inked a partnership with crypto exchange crypto.com. As part of this partnership, Coca-Cola will be taking many of the top moments from the ongoing tournament and turning them into digital collectables. 

Details About the Project 

As per the official announcement, football fans will be able to get their hands on immortalized moments from the 2022 world cup. 

“The passion, power, and incredible talent of the best teams competing in the FIFA World Cup Qatar 2022™ will be captured forever by Coca-Cola and Crypto.com in a series of NFT artworks inspired by the unique ‘heatmaps’ created by each team’s on-field attacks, tackles, and winning goal,” the announcement said. 

The collection being released consists of 10,000 assets that were designed in collaboration with digital artist GMUNK. As the press release explains, the NFTs are designed by tracking the in-game movement of players.

To redeem one of these NFTs, users need to sign up for the Crypto.com NFT platform and also register on Coca-Cola’s Fanzone page and then click on the NFT banner. After doing this, they will stand the chance to win one of the NFTs. Given the fact that the World Cup happens only every four years and how big of an event it is, we can expect there to be a lot of demand for these assets. 

Beyond that, this is also a reflection of football’s massive fan culture in that supports have actively embraced NFTs of all kinds. Most especially, NFTs that depict iconic game moments have also proven popular and given them a vehicle through which to connect with fans. 

As Gmunk says, regarding the project, “At its core, Coca-Cola ‘Piece of Magic’ uses football data as our paintbrush, defining densities, behaviors and applications of color to shape and create an immersive piece of art that embraces the spirit of football and depicts a visual story unique to each match.” 

NFTs as a New Engagement Tool

One thing that should not be underestimated is the lengths that fans will go to feel closer to their favourite sport. This passion has been seen for decades in the material world and has transferred over to the realm of digital assets. 

And this isn’t only limited to sports as consumer brands have gotten in on the action as well. This is Coca-Cola’s most recent NFT project though it previously launched a collection for International Friendship Day. Other consumer brands like Pepsi, Taco Bell, and Starbucks have also stepped into the NFT space to much success, showing just how popular they have become among consumers and how powerful of an engagement tool they are.

One of the long-running debates that have endured within the blockchain space is what exactly digital assets ‘are’. From a legal perspective, especially, there has been back-and-forth about whether they are investments, legal tender, property, and so on. But as NFTs, in particular, are being more widely used, we have seen several landmark cases that establish legal precedents for their status and protection. 

After UK and Singaporean courts set legal precedents for NFTs as property this year, a Chinese court has followed suit. According to local media, the Hangzhou Internet Court in China declared that NFTs fall under the category of ‘virtual property’. As such, NFTs should be protected by law in the same way others are.

NFTs Status in China 

This ruling came as a result of a recent case in China. The case involved a digital technology company in Hangzhou and one of its users. Back in February, the company held a flash NFT sale on its platform which promoted some limited edition “NFT digital collection blind box” that would be sold out very soon.

As part of the sale process, customers were instructed to input a phone number for authentication and that NFT redemption was limited to one asset per customer. The user, who was identified by the alias ‘Wang’, provided this information and paid 999 yuan for the asset. 

However, the platform did not give him any assets and instead, gave him an unwanted refund. This then led Wang to file a court case. As he puts it, the company violated the terms of their agreement and backed out from giving him what he paid for. 

In the court case, Wang asked that the company fulfil its obligations and give him an NFT or give 99,999 yuan as compensation.  But the company has hit back, stating that Wang’s mobile phone number and ID did not match and as such, his order was cancelled. Furthermore, the company claims that he did not incur any losses since he was given a refund.

In the end, the court chose to side with the company, claiming that due to the non-matching details, it was within its rights to terminate the sale. But this case goes beyond just a platform and a disgruntled user. 

What This Means

This case sets the precedent that NFTs are indeed properties that can form the basis of a lawsuit. This is especially impressive given China’s strict treatment of NFTs in the past. As the court said in its ruling, “NFT is a unique digital asset on the blockchain based on trust and consensus mechanisms among blockchain nodes. Therefore, NFT falls into the category of virtual property.”

Moving forward, those who deal in NFTs, whether by purchasing or selling, will have legal backing that can protect them and their assets. While around the world, NFT-focused regulation has some ways to go, it is refreshing to see that the law is catching up and giving these assets the recognition they deserve. 

If you keep on top of all things NFTs, you might have noticed the fashion world’s growing love affair with these digital assets. While fashion and tech have always collided in some way, NFTs seem to have a particular appeal to fashion creatives. From Paco Rabanne to Louis Vuitton to Prada, some of the biggest names in fashion have launched NFT projects in the last few years. 

As if these were not impressive enough, the  Council of Fashion Designers of America has announced a new web3 initiative to mark its 60th anniversary. This initiative will take place on the popular metaverse platform the Sandbox and will see NFTs from seven top American designers. 

CFDA Takes a Chance on NFTs 

As part of the celebrations, the CFDA will be hosting an exhibition in the metaverse called “Fashioning the Shades of American Design”. This exhibition will see 60 fashion looks from over the last 60 years being shown to attendees. And then there are the NFTs. 

To kick off the show, the CFDA will collaborate with 7 American designers to create 7 NFT designs which will be auctioned off. As per vogue Business, the designers to participate in these will be Coach, Michael Kors, Carolina Herrera, Diane von Furstenberg, Tommy Hilfiger, Vivienne Tam and Willy Chavarria. 

Each NFT designed will be a one-of-one and will come with utility attached for whoever succeeds in buying them. The assets will go on sale from December 12, 2022,  in a private auction a week before the exhibition itself opens, with prices ranging from $15,000 to $25,000. And some of these perks have already been announced to get potential buyers excited. 

Diane von Furstenberg’s NFT will come with an invitation to the April 2023 opening of a DVF exhibition in Brussels, an invitation to view the house’s upcoming collections and a meet-and-greet with the designer herself.  Michael Kors and Vivienne Tam will be offering access to their shows and a meet-and-greet. Tommy Hilfiger is offering an all-expenses-paid trip to his next show as well as signed items from his collection. Coach is offering a tour of its archives, a physical handbag, and tickets to one of its holiday events. 

Needless to say, each designer is offering one-in-a-lifetime benefits with these NFTs. This whole initiative also acts as an interesting use case for blockchain and web3 within this fashion industry and this was reiterated by Richard Hobbs, the founder and CEO of Brand New Vision (BNV), the NFT platform behind this project.

“Bringing to life iconic American fashion moments as digital assets and reimagining their surroundings to amplify core brand values and showcase timeless design is building a great use case for the global fashion industry as a whole. BNV is building the framework for fashion brands to navigate their way into the metaverse and all the possibilities that Web3 can offer them,” he says.

With such big names behind the exhibit and auction, we can look forward to even more fashion-NFT projects in 2023.

A few months ago, news broke about Apple’s rules regarding NFT transactions via its app store. It was revealed that Apple would charge a 30% commission on all NFT transactions that took place through the app store and would not allow redirects to external platforms. This was a move that was met with criticism within the blockchain space and concern about how it would affect businesses. 

This is once again making the rounds within the news cycle as Coinbase, a top digital asset platform, has revealed that Apple is blocking its latest app update due to the rule. 

Coinbase vs Apple?

In a series of tweets from December 1, 2022, Coinbase revealed that users are unable to send NFTs within its iOS app. The reason for this, it says, is Apple’s disabling their features. 

“You might have noticed you can’t send NFTs on Coinbase Wallet iOS anymore. This is because Apple blocked our last app release until we disabled the feature,” the tweet says.

Coinbase also reveals that Apple wants to gas fees associated with sending NFTs to be sent through its in-app system so it can collect the now-infamous 30% commission. Considering the fact that gas fees are paid on-chain, it is not possible to have them be paid through a centralised platform and as such, the two are at an impasse.

This was also pointed out by Coinbase in the Twitter thread to its users. 

“Apple’s proprietary In-App Purchase system does not support crypto so we couldn’t comply even if we tried. This is akin to Apple trying to take a cut of fees for every email that gets sent over open Internet protocols,” it said. 

And this policy, Coinbase says, does not just affect people to who want to buy new NFTs but even those who already have them. Simply put, anyone who has existing NFTs in their Coinbase wallet will find it very hard to move them to another platform or gift them. They are, essentially, stuck in limbo for the foreseeable future.

When Apple first announced its 30% commission rule, many with insider knowledge of blockchain pointed out how faulty this logic was. First, it is an unreasonable percentage given that many platforms don’t even charge that much and it would eat into their profits significantly. 

Then there is the fact that, as Coinbase has pointed out, enforcing these rules for on-chain transactions is virtually impossible. Overall, the situation has proven quite frustrating. 

But Coinbase isn’t giving up as it ended its Twitter thread by saying, “We hope this is an oversight on Apple’s behalf and an inflection point for further conversations with the ecosystem. @apple – we’re here and want to help.” 

The Issue at Hand

The whole saga with Apple shows why blockchain education is needed within traditional tech platforms to prevent situations like this. It also shows that as NFTs become more mainstream, some friction with existing platform rules is somewhat inevitable and needs to be worked through.

For years, Animoca Brands has been leading the blockchain gaming revolution and NFT adoption efforts. Notably, it released a collection of educational NFTs via TinyTap, one of its subsidiaries, and was an investor in OpenSea, Yuga Labs, and Dapper Labs. But even with all of these, it was believed that its blockchain ambitions were just getting started. 

Even more news has come out from the company’s camp as it has announced a $1 to 2 billion fund to develop projects in the Metaverse. This fund will be called Animoca Capital and intends to begin making investments early next year. 

Details About the Fund 

The company is looking to raise between $1-2 billion for Animoca Capital and these funds will be desiccated towards mid and late-stage NFT and Metaverse projects from around the world. This fund will be managed by Animoca Brand’s executive chairman Yat Siu who has said that digital property rights will be a priority of the project moving forward. 

As Siu also explained, the goal of this is to act as an entry point for investors into various web3 projects. Many investors would be interested in such projects but there are complexities when it comes to risks. Seed investments in web3 projects are much riskier and some might be more receptive to investing at the growth or late stage when the project has proven itself. 

“For a lot of traditional investors, investing in growth [stage] to a late stage is safer. It’s very different from investing in a seed startup, which has much higher risk,” says Siu.

The current state of the market also needs to be taken into account. We are currently in the middle of a crypto winter which has had devastating effects on the industry. From major companies like Kraken and Coinbase having to fire staff to cryptos and NFTs alike seeing their market values drop, no one has been spared. And then there is the whole FTX collapse that has cast a dark shadow over all things blockchain-related. 

This would make investors even more cautious about investing in early-stage projects that are not fully market-tested. But Siu is not completely deterred by this. As he says, investments can continue to thrive even in bear markets. 

“I think it’s not as competitive as before. … In a bear market, what often happens is concentration goes to market leaders,” he said. 

Creating Opportunities in Web3 

If the industry is going to move forward and reach its full potential, the various projects within it will need financial support and this is what Animoca Capital seems to be doing. While it is focused on growth and late-stage projects, it will ensure that businesses keep running as usual and that investors can be connected to promising initiatives. 

This is especially important at this time given the ongoing crypto winter and the pessimism it could potentially inspire in the industry. As Animoca Capital unfolds and begins investing in different projects, we should get more announcements from its parent company.

Months ago, Uniswap announced that it would be raising funds to begin its entry into the NFT and web3 space. While it has been famously operating as a decentralized token exchange for years, these new ambitions marked a departure from its DeFi beginnings. 

Now, Uniswap has made good on these plans as it has announced an NFT aggregator. This also comes after it acquired Genie, an existing NFT aggregator, along with the plethora of expertise that the company had access to via its team. Not only is Uniswap launching an NFT aggregator but it is rewarding its early users to the tune of $5 million. 

Uniswap’s NFT Debut 

Speaking to Decrypt,  Scott Gray, the founder of Genie who now acts as Uniswap’s Head of NFT Product, said that NFTs and cryptocurrencies are closer in concept than some think and that this new project, which is bedding dubbed a ‘Google search’ for NFTs, is hoping to bridge two different worlds. 

“A lot of people think of NFTs and tokens as two siloed experiences, two siloed audiences, but that’s not really the case,” Gray said. 

This desire can be seen in the features of Uniswap’s aggregator. Those using it can access the ‘global price floor’ of any NFT compared across seven different marketplaces. The marketplaces currently aggregated by the platform are OpenSea,  NFT20, Larva Labs, LooksRare, Sudoswap, Foundation, and X2Y2, though more might be added in the future. Besides this, users can choose to buy NFTs in bulk-buy their NFTs all at once and list them on different exchanges. 

In terms of gas fees, Uniswap offers 15% cheaper fees than other aggregators on the market. The first 22,000 users of the exchange can enjoy gas rebates of up to 0.01 ETH until December 14, 2022, with the rebates claimable from January 16, 2023.

To kick off this new aggregator, Uniswap will be holding a $5 million USDC airdrop. These funds will be distributed to two groups of users; Genie users that made more than one transaction before April 15, 2022 who are eligible to receive $300 each and holders of Genie’s Genesis NFTs or Genie Gem NFTs who can receive $1,000 each. 

And, of course, there is the ever-present issue of royalties. Many NFT marketplaces and projects have had to take a stance on royalties and Uniswap is no different. Gray explained that while royalties have been instrumental to the industry, the aggregator will not be enforcing them.

“As an aggregator, we don’t have the ability to set creator fees, or enforce creator fees, because we’re not creating listings on our side. But in light of that, we made it really easy for users to filter out which marketplaces they want to use, or they don’t want to use,” he said. 

The Ever-Changing NFT Market

The NFT industry officially has a new aggregator that users can benefit from which is backed by a massive name in the crypto space and hopefully, will create more ease for transactions among NFT buyers.

The FTX saga is one of those rare industry collapses that is the stuff of Oscar-winning movies; an exchange that seemed almost too big to fail, a sudden collapse that led to the loss of billions, endless accusations of fraud and mismanagement, and an industry that is left to deal with the aftermath.

But according to Devin Finzer, the CEO and co-founder of OpenSea, this whole event, while tragic represents a unique opportunity to grow trust among customers in blockchain spaces. This was said in a recent statement to Decrypt.

How We Can Grow Trust

Speaking to Decrypt, Finzer was quick to acknowledge that the incident has been a devastating one for the crypto industry and crypto-adjacent businesses. 

“We’re still feeling the collateral damage across the space. There’s no doubt that it’s a setback for crypto,” he said. 

And this is certainly true. Besides the loss to FTX itself, several businesses that had exposure to the exchange have suffered. BlockFi, for example, suspended user withdrawals and has now filed for chapter 11 bankruptcy after some of its funds have been stuck in limbo following the collapse. And they are not the only ones. 

In total, FTX is estimated to have around 1 million creditors, with the top 50 being owed a collective $3.1 billion. And then there is the emotional cost of the collapse; crypto critics have taken this as a ‘gotcha’ moment and there is an overall sense of pessimism among some users who speculate on which crypto project will be the next FTX.

But amidst all this, Finzer says, is a chance to build trust among customers. 

“I think for the broader crypto ecosystem, and for NFTs in particular. This is really an opportunity to invest in strong, continual trust with users,” he says. 

How OpenSea has done this so far is first by reiterating its commitment to protecting creator royalties. After initially revising its royalties policy, OpenSea has reinstated it amidst industry debate about how they should be handled. On top of this, OpenSea has reiterated its decentralized custody practices. In this sense, the marketplace does not actually have custody of its users’ NFTs. 

Instead, Finzer explains, a system of decentralized smart contracts is used.

“We actually operate through a system of decentralized smart contracts. We do not custody users’ funds or users’ NFTs“And so there’s a lot of benefits to that type of system, over a central authority where things are a lot more opaque,” Finzer says. 

Given that during the FTX collapse, NFTs associated with this year’s Coachella music festival have also been stuck in limbo, there is some merit to this practice. 

And in the last few weeks, digital asset buyers have been demanding more evidence of asset security from the platforms they use, with several exchanges releasing proof of reserves and CoinMarketCap releasing a tool to confirm this.

Finally, Finzer notes that the industry is a resilient one and just like with the Mt Gox collapse years ago, it can recover.