Why NFT Sneakers Could Be Coming Soon From Nike

Many companies that have blockchain or cryptocurrency business lines have announced non-fungible token plans or are seen by investors as possible NFT plays.

One major apparel company could soon be a NFT stock via patents granted for digital sneakers.

What Happened: In 2019, Nike Inc NKE was granted a patent that could have huge value in the non-fungible token space.

The patent calls for a “system and method for providing cryptographically secured digital assets.” The patent includes digital assets for articles of footwear.

“Blockchain control logic for mining, intermingling and exchanging blockchain enabled digital shoes” is also part of the patent Nike received.

The patent lists “cryptokicks” as the subject from Nike. The Cryptokicks may include token data and attributes from a companion physical shoe.

Cryptokicks will also have the ability to breed to create offspring and can be morphed or mutated to be rebuilt by a virtual object.

The newly created different variations could also be turned into physical shoes. The plans named in the patent also list the ability to use the digital shoes in video games.

Another patent for Nike in the NFT space calls for “systems and methods for provisioning cryptographic digital assets for blockchain secured retail products.”

Related Link: Is Funko The Next Big NFT Winner?

Why It’s Important: NFTs have risen in popularity throughout 2021. The field has attracted customers who want unique offerings and investors betting on the long-term value of NFTs.

RTFKT sold out of its digital sneaker launch in 7 minutes and generated $3.1 million in sales. The company said it has seen big brands and celebrities reach out for future partnerships.

Nike could have a NFT advantage here with its patents and its massive scale. The company appears to be planning to connect physical and digital shoes together. Nike could increase sales of certain shoe lines or launch exclusives that come with NFT versions as well.

The company has remained quiet on NFT plans so far, but Nike could be an exciting stock to watch in the space going forward.

NKE Price Action: Shares of Nike were trading down 4.15% at $127.69 at last check Thursday. Shares have traded between $64 and $147.95 over the last 52 weeks.