NFTs are the biggest crack on the internet. Do they work for sneakers?

These iconic sneakers of rainbow color were released digitally as NFTs or invisible tokens. The latest web-based collection is digital art NFTs or collectibles that are authenticated or “minted” using blockchain technology and then purchased using cryptocurrencies such as Ethereum. A digital ledger, which anyone can access, tracks who has a specific NFT, and ensures that the NFT cannot be duplicated or disturbed. Owning an NFT does not mean that you own the copyright of a given asset, but it does give you copyright rights. And the sale of NFT can be surprising: Last week, Beeple-owned bare artist Mike Winkelmann sold one digital collage through Christie’s for a record-breaking $ 69.3 million to Singaporean crypto fund Metapurse .

With all the money moving around the NFT market, it would seem like a natural playground for luxury business players like Gucci, Saint Laurent or Prada, who have been selling expensive, attractive products. So far, however, the company, which is nearly a year old, known as Rtfkt (deliberate misspelling of the word “artifact”) is a well-known player marketing NFT sneakers and now clothes. Its success could offer fashion companies a roadmap if they choose to dive into NFTs.

“Sneakers were the basic vehicle first,” as they were an asset class as explained by Benoit Pagotto, one of the three founders of Rtfkt. (In an internet-age company structure, Mr. Pagotto is based in Paris, but his partners Chris Le and Steven Vasilev are based in Salt Lake City and Los Angeles, respectively.) Mr. Pagotto, who worked previously in the esports industry, note that in 2021, even teenagers know that you can buy a new, hyped up sneaker such as Adidas Yeezy Boost one day and sell it for a bad profit the next day.

That versatility of sneaker applies even in the digital realm. Just a few weeks after launch, some very small “shoes” trade for about twice the launch price. And unlike the traditional auction market, every time the NFT is resold, Rtfkt gets cut. This is a common practice on the market and makes NFTs even more interesting because on paper, creators can make money forever.

The company is not just digital. Rtfkt has hired two former Clarks shoemakers to make real-world samples of their digital sneaker designs and bring out factory-made custom-made versions to all NFT keepers. . “We believe that emotional connection to physical objects remains important and can increase their connection to the design,” Mr Pagotto said. The Fewocious sneakers are likely to launch starting in April, but Mr. Pagotto said that for the company’s customers, these real shoes represent a side display that is less interesting to the digital distribution. In the weeks since the fake shoes were released, he has kept an eye on NFT fans posting giddily about the designs on social media, all without touching a physical copy of his. -ever.

Rtfkt’s main group is made up of two groups, often involved: digital groups that reside on social media; and crypto-currency zealots that have reached online-based fortunes. Arthur Meucci, 30, an early NFT designer and collector, bought one version of the Rtfkt Fewocious shoes. He’s looking forward to getting the physical pair, if only so he can make a YouTube video of it without putting a box on the blisteringly rare shoes. After that though he plans to take the shoes off. “I don’t see myself walking around with a pair of shoes that cost that much,” he said. For him, the boots and the NFT are more of a speculative asset than a consumption item.

Thirst for digital flexibility can hold the key where “spending” NFTs are going. Clothing has long been in digital experiences. Popular contemporary games like “Fortnite” and “Animal Crossing” allow players to go in and decorate their characters. Fashion brands have even entered the virtual fashion ecosystem: Earlier this year Gucci introduced the North Face collaboration within the “Pokèmon Go” game. However, that outfit is limited to that particular game. As explained by Rustin Sotoodeh, 25, CEO of tech accessories company Higround and a true believer in NFT, this equates to buying a pair of Nikes but only being able to wear them in-store.

He believes that being able to have “clothes” in digital form – beyond the confines of a single game – allows one to walk around in any virtual space. His “pipe dream”, he said, was to have both the real world and the NFT version of his favorite Stone Island jacket. He could walk to the corner store there, or digitally he could play “Halo” there.

There are signs that companies are working towards this one-to-one relationship between a person’s home closet and a person’s digital closet. In 2019, Nike patented “CryptoKicks,” a system where customers receive a virtual version of a shoe while purchasing it for storage in the “digital locker.” This technology has not yet been introduced and a representative for Nike has not responded to a request for comment regarding the patent. Even NFT advocates believe Mr Sotoodeh’s open landscape is a long way off. Gaming “is a very competitive industry,” said Mr. Pagotto of Rtfkt, and would provide a high level of collaboration for video game publishers to use the same NFT-enabled technology.

For now, NFTs are largely static materials – as opposed to images that hang inside a home. Even in that framework, some NFT aficionados see potential for the world of fashion. Jeff Carvalho, co-founder of Highsnobiety, a clothing and culture website, argued that a fashion label like, say, Tom Ford, could detail a memorable runway and offer for sale. This is similar to Top Shot at the NBA, a highly profitable marketplace where fans spend five or even six figures to own NFT clips of major events such as LeBron James dunk. Mr. Carvalho also thought of fashion houses selling NFTs of their most iconic designs. If you are already a curator of Margiela’s signature shoes, Tabi boots or tee with the cutey logo Comme des Garçons Play, this is probably just the uber-rare cherry version of these designs.

Mr. Pagotto offers a factual study: Unlike basketball, fashion is not “so much of a fan business. “Millions of people don’t stream runway shows and there are far fewer Tabi shoe collectors than LeBron fans. These facts limit the audience – and the potentially big money yields – of luxury NFTs. When contacted about possible future applications of blockchain technology, several fashion brands including Gucci, Burberry and Louis Vuitton did not comment or did not respond.

The next immediate step for fashion-focused NFTs may be something Mr. Sotoodeh created just for sport. A few weeks ago he mocked the cell phone “fit pic,” – a head-to-toe picture of what he was wearing – which he says is the first ever NFT-friendly pic. It’s not a very good picture – his head is cut off and his arm disappears. But it’s the kind of infamous piece that can thrive in this NFT madcap world. After all, Twitter founder Jack Dorsey is selling off NFT of his first Tweet which is up to $ 2.5 million on Valuables, the NFT marketplace. So far, no one has bought Mr. Sotoodeh’s NFT fit pic, but with just a few thousand Instagram followers, Mr. Sotoodeh isn’t quite a fashion influencer. If someone with several million followers points to the right picture – silly as it sounds – the crypto sales may start flying.

Write to Jacob Gallagher at [email protected]