Adidas looks to build long-term brand loyalty with ‘dynamic’ ALT NFT drop
- Adidas is one of several sportswear manufacturers entering Web 3.0
- Into the Metaverse first launched in December 2021
- ALTs promise real and virtual experiences with NFTs that evolve over time
Adidas is moving ahead with the ‘third phase’ of its Web 3.0 roadmap, hoping that the new ‘ALTs’ non-fungible tokens (NFTs) will unlock a valuable new revenue stream and increase consumer loyalty.
The sportswear giant first launched its ‘Into the Metaverse’ collection in December 2021, selling out the first drop of 30,000 NFTs and generating $22 million.
The collection hoped to capitalize on demand for sports-related fashion, with NFT owners able to purchase exclusive digital and physical merchandise branded with Adidas’ collaborators Bored Ape Yacht Club (BAYC), Punk Comics and GMoney. Token holders could also participate in a further drop in 2022.
Now Adidas is inviting the ‘Into the Metaverse’ community to ‘burn’, or destroy, their existing NFTs in exchange for an ‘ALT’ token that unlocks an interoperable avatar in the form of a ‘dynamic’ NFT that can develop themselves over time and are used in various interactive experiences.
All ALT owners get certain IP rights to their NFTs, the ability to customize their avatar, and get prime access to a new Adidas Collect marketplace. They will also continue to have early or exclusive access to digital and physical products and member-only experiences.
On top of this, each ALT gets a “storyline”, which essentially means they have specific traits and tools depending on which of eight sport or lifestyle “types” it belongs to. For example, soccer-themed ‘Strikes’ ALTs gain access to athlete experiences, basketball-related ‘Hoops’ ALTs open doors to American athletes, and ‘Decos’ unlock co-creation opportunities with up-and-coming artists.
SportsPro says…
Web 3.0 has struggled to shake off an unfavorable reputation, cultivated by several examples of NFT projects that were at best tools for speculation and at worst outright scams. However, proponents of blockchain continue to believe that there are real use cases for ledger-based technologies that can establish the concept of ownership in the digital world.
Some of the most successful Web 3.0 projects are those that have managed to create a sense of community or fused physical and digital elements to create real utility. Adidas ‘Into the Metaverse’ achieves both these results and has managed to create a highly engaged ecosystem of fashion fanatics who are able to become brand ambassadors in both the real and virtual worlds.
The NFTs this community holds are not valuable in themselves – not least because previous NFTs must be destroyed to obtain ALTs – but their owners see real value in the benefits that come with ownership. The ambition for Adidas is long-term loyalty. By keeping ownership limited to those who bought NFTs in earlier phases, the company cannot be accused of a cash grab.
