NFT
Nike’s .SWOOSH Web3 platform has released its first non-fungible token (NFT) sneaker collection, grossing more than $1 million in sales despite ongoing delays and technical issues hampering the user experience.
Sales of Nike’s highly anticipated virtual creations began on May 15, nearly a week after the previously announced May 8 launch date. “posters” that served as their early entry ticket. In total, Nike says 106,453 posters were distributed to early members of the .SWOOSH community.
The “General Access” sale began May 24 — two weeks after the proposed May 10 sale date — and aimed to dispose of all remaining NFTs of the total inventory of 106,453.
More than 66,000 NFTs had been sold as of Thursday afternoon, according to Polygonscan. Each NFT cost $19.82 — a tribute to the year the Air Force 1 sneaker was first released — indicating that Nike has pulled in about $1.3 million in sales to date, though sales are ongoing. and now ends on June 1.
While early numbers look promising, the launch was delayed several times due to technical issues and traffic issues, Nike said, leaving excited buyers frustrated with the cumbersome process.
Meanwhile, updates from the Nike team have hinted that sales are slower than expected. While popular Nike physical sneaker releases often sell out in minutes, more than a third of OF1 NFTs are still on sale.
Chronic delays and technical failures
When First Access sales finally kicked off on May 15, the launch was stalled by repeated delays, setting the tone for a bumpy NFT coin.
On May 7, the Twitter account for .SWOOSH tweeted that the platform needed a few more days to “fine-tune” the rollout and create a “seamless” experience.
However, when the First Access sale started, the website crashed frequently, leading to an uneven coin experience that lasted several hours. Some users were disappointed with the picky experience, given Nike’s expertise in releasing limited edition collectibles to the masses.
On May 16, Nike extended the sale of First Access “due to ongoing technical issues”, postponing General Access sales. Additional “traffic problems” caused a second delay.
On May 17, Nike said there were more than 85,000 OF1 boxes left. As of May 22, that number was still hovering around 83,000, despite what appeared to be a large number of users eagerly awaiting the opportunity to purchase their NFTs.
General access sales began May 24, though the site was once again plagued with processing delays. Some users even reported being charged for OF1 NFTs despite not receiving them. In response, .SWOOSH said it “encountered an unforeseen bug that slowed down the minting process” that “also blocked additional purchases.”
On May 25, Nike tweeted that more than 55,000 OF1 boxes had been sold to over 30,000 unique buyers and called the sale a success. Other Nike employees praised .SWOOSH for “managing insane traffic”.
Nike did not immediately respond to CoinDesk for comment.
The global sneaker giant has taken steady steps to expand its Web3 strategy in recent years, before acquiring digital fashion startup RTFKT Studios. RTFKT has launched several successful NFTs, including the CryptoKicks collection, and has partnered with brands such as Rimowa and artist Takashi Murakami on limited edition releases.
.SWOOSH has been teasing the release of a .SWOOSH marketplace in the coming months and has announced plans to expand into virtual and IRL experiences, gaming, coin passes, and 3D files.