Nike’s abrupt exit from the RTFKT NFT venture definitely gives a loud message. It’s not a small issue, but rather a massive red flag for any brand looking to make a move into Web3. The last time I heard that word, I remember having bought a “revolutionary” juicer that was going to fix everything. Instead, it found its way jammed in the rear of my kitchen cabinet, gathering dust or worse—never used. The noise was breathtaking, the opportunity incredible, the implementation… an utter failure. Unfortunately, that juicer—as with many ventures in NFT land, including Nike’s—proved the divide between marketing sizzle and consumer steak.

Whatever its virtues as a business case study, the situation represents a colossal betrayal of trust. We’re talking about a brand that represents the pinnacle of athletic achievement and aspirational lifestyle. Consumers in the U.S. and abroad believe in this brand with their whole hearts. That brand, in what seemed like an overnight move, completely shut down a digital product, resulting in the NFT holders being left out to dry. Now, a potentially massive class-action lawsuit for selling unregistered securities is hanging over their heads. Even if Nike somehow wins this legal argument, the reputational hit has already been taken.

Web3 Needs More Than Just Hype

Let's be blunt: jumping on the NFT bandwagon simply because everyone else is doing it is a recipe for disaster. Nike, in its haste, seemed to forget a fundamental principle: Web3 isn't just about creating things; it's about building communities. It is, and it really is about creating that sense of ownership and shared mission. The temporary inaccessibility of RTFKT NFTs during a blockchain migration only added insult to injury, highlighting a lack of foresight and technical preparedness.

The real issue at play here is a deep-seated misconception about the very nature of decentralization. It’s more than just pasting a random token onto a product and claiming it’s Web3. It’s about sharing out power, cultivating transparency, and creating systems that center the community and are built to last. Nike’s unilateral moves reek of Top Down Highway 2.0 control in the guise of decentralized innovation.

Trust is Earned, Not Granted

Nike’s enormous brand power conferred an unearned legitimacy on RTFKT NFTs. Users didn’t only purchase the digital sneakers because they wanted to wear them. They were counting on Nike to stick it out in the long term. Second, they figured no publicly traded giant would so easily choose to abandon ship. After all, the entire NFT market was just experiencing a downturn dubbed the "NFT winter."

Here is where the anger, the outrage, should come from. It's not just about losing money (although that's definitely part of it). It’s not simply about the broken promise, the missed opportunity to create something remarkably creative and interesting. It’s not just about a behemoth company throwing its weight around and stomping on the little guy — the very community it came looking for.

Commitment Exceeds Three Years

Three years is the blink of an eye in the development of a world class brand. Nike’s short-lived NFT experiment is a perfect example of the long-term vision and commitment that must be in place. It’s the equivalent of planting a tree and then expecting it to produce fruit within a year. Like all great projects, Web3 projects need cultivation, care, time, and people who really want to create something long-lasting.

Here are five lessons brands can learn from Nike's NFT stumble:

  1. Due Diligence is Non-Negotiable: Understand the tech before diving in.
  2. Build Community, Not Just Products: Foster ownership and engagement.
  3. Long-Term Vision is Essential: Plan for the marathon, not the sprint.
  4. Transparency Fosters Trust: Be open and honest with your community.
  5. Prepare for Volatility: The market will ebb and flow.

It's like mentoring young digital entrepreneurs, something I'm passionate about. I always emphasize the importance of responsible innovation, the need to build sustainable businesses that benefit both the creators and the community. Quick wins are seductive, but lasting success only comes with a sustained commitment to be more ethical and focused on creating value.

Adidas—the one brand that appears to have a fully gaming NFT strategy—has shown a much deeper grasp of this. They're not just selling digital assets; they're building experiences, fostering a sense of community, and creating value beyond mere speculation. They’re playing the long game, and that’s largely why they’re uniquely poised to take advantage of Nike’s missteps.

Web3 isn’t speculation, hype, or get-rich-quick schemes. Nike’s NFT misadventure should be a warning learned. It’s a good wake up call for brands that they should be responsible and actually adopt the decentralized spirit. The international community will be paying very close attention. It is the brands that understand this that will win in a future digital-first world.