Nike Leads among Web2 Brands for Highest Revenue Reaped from NFTs

Fashion brand Nike has topped the list of Non-Fungible Token (NFT) exposed traditional companies that have recorded the highest revenue from digital collectable transactions thus far.


According to data from Dune Analytics, as shared by NFTGators, Nike has raised a cumulative sum of $185.26 million in revenue. The company introduced this figure from a total transaction count of 67,251.

About a year ago, fashion and entertainment brands started embracing NFTs as a new way to connect with their customers and fans worldwide. Many not only acquired blue chip NFTs like the CryptoPunks and Bored Ape Yacht Club (BAYC), quite a number of brands launched their own NFT collections, further showcasing the interest across the board.

The dive into NFTs now seems to be paying off for these brands as their venture has turned into productivity in no small measure. Per the Dune Analytics data, Dolce & Gabbana ranks second on the list of outfits with NFT exposures, with its revenue coming in at $25.65 million. Jewellery brands Tiffany, Gucci, and Adidas, make up the top five list of brands with high NFT revenues.

The majority of brands that have shown positive interest and commitment to NFTs have seen a remarkable return. This feat shows that Web3.0 is not entirely a waste of investment or interest. A very significant data in the Dune Analytics data is the exposition on the place of royalties earned on their respective NFT collections.

Nike has earned a total of $92.1 million on royalties, indicating that many secondary sales of the respect NFTs have taken place since the collection was launched. Of the top ten profiled brands, Tiffany, Budweiser, Bud Light, and the Pepsi Mic Drop have not recorded any transaction sales. This indicates that the NFTs are either yet to hit the secondary markets or collectors are HODL to sell much later.

Image source: Shutterstock


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Nike Files Lawsuit Over Counterfeit Sneaker NFTs

Key Takeaways

  • Nike has filed a lawsuit against the sneaker marketplace StockX.
  • The filing alleges that StockX’s Vault system is freeriding on the back of its trademarks and intellectual property.
  • StockX has not yet commented on Nike’s lawsuit, citing a policy against public statements on pending litigation.

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Nike is suing the sneaker reselling platform StockX over NFTs of Nike footwear sold to StockX customers. The suit alleges that StockX is freeriding on the back of Nike’s trademarks and associated goodwill.

Nike Sues StockX

Nike is defending its intellectual property rights from counterfeit NFTs.

The sportwear titan filed a lawsuit against sneaker reselling platform StockX Thursday, claiming that the marketplace is infringing on its intellectual property rights by issuing NFTs of Nike shoes. 

In January, StockX released its first NFT venture called Vault. StockX users can purchase NFTs of popular collectible sneakers that are backed by a physical pair of shoes. Because the NFTs are backed, owners can redeem their NFTs for a physical pair of sneakers if they wish to do so. The new NFT system helps sneaker collectors and resellers verify the authenticity of their purchases while avoiding other problems associated with sneaker trading, such as shipping costs and keeping inventory. 

However, Nike, which filed several patents for digital goods back in October last year, believes StockX’s Vault system is freeriding on the back of its trademarks, brand identity, and associated goodwill. An excerpt from Nike’s filing stated:

“Without Nike’s authorization or approval, StockX is “minting” NFTs that prominently use Nike’s trademarks, marketing those NFTs using Nike’s goodwill, and selling those NFTs at heavily inflated prices to unsuspecting consumers who believe or are likely to believe that those “investible digital assets” (as StockX calls them) are, in fact, authorized by Nike when they are not.”

The rising market value of the StockX-issued sneaker NFTs, which has overtaken the value of the physical pairs of sneakers they represent, as well as StockX’s move to grant perks to NFT holders, has strengthened Nike’s case against the reselling platform. 

StockX has not yet commented on Nike’s lawsuit, citing a policy against public statements on pending litigation. The sneaker marketplace was valued at $3.8 billion after its most recent funding round in April 2021. 

NFTs exploded in popularity over the latter half of 2021, with countless companies and major brands attempting to cash in on the action. However, copyright and trademark definitions do not usually reference NFTs, resulting in several high-profile disputes hitting U.S. courts. 

In November, Quentin Tarantino announced his plans to release NFTs featuring unseen cuts from Pulp Fiction on Secret Network. In response, Miramax, the company that owns the rights to Pulp Fiction, filed a lawsuit against Tarantino, claiming that the NFTs constituted intellectual property violations and a breach of contract. While Tarantino said he would proceed with the launch, the legality of doing so is still unclear.

Whether Nike will win its lawsuit against StockX remains to be seen. However, as non-fungible tokens continue gaining traction, lawsuits disputing NFTs and intellectual property rights will likely become increasingly common.

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NFT battles: Nike takes seller of unlicensed NFT sneakers to the court

Popular sneaker maker Nike has started the “licensed NFT” wars by taking an online reseller called StockX to court for trademark infringement or sale of unlicensed nonfungible token (NFT) sneakers.

According to a Reuters report, Nike has filed a lawsuit against the reseller in the New York Federal court demanding an undisclosed amount in damages and a halt of sales on such virtual collectibles. StockX reportedly started selling Nike sneaker NFTs in January and promised buyers they can redeem the real-world version of the sneakers in the near future.

Nike in its 50-page complaint claimed StockX has sold nearly 500 NFT sneakers with the Nike branding which has dented their reputation and legitimacy. The shoemaker brand also alleged the NFT sneakers were being sold at inflated prices with very “murky terms of purchase and ownership.” 

StockX is a popular online reseller estimated to be worth $3.8 billion and the NFT sneakers because of which it is facing the lawsuit is still online. The collection is called ‘The Vault’ comprising of 9 premium Nike sneakers and deals with NFTs tied to their real-world asset.

Related: From art to gaming: The biggest NFT trends of 2021

Nike claimed NFTs are a way for brands to interact with their customers, but some of the players in the market are trying to “usurp the goodwill of some of the most famous trademarks in the world and use those trademarks without authorization to market their virtual products and generate ill-gotten profits.” The shoe-maker is set to launch its own NFTs collection later this month in association with recently acquired art studio RTFKT.

NFTs popularity has made it a primary PR and marketing tool for brands and celebrities. However, as with any popular use case in the decentralized world, NFTs have reached a point of exploitation. Apart from Nike, there have been several other lawsuits around NFTs involving big brands and celebrities. Pulp Fiction’s film production company Miramax sued the director of the film Quentin Tarantino for selling NFTs of the movie, calling it copyright infringement.