Adidas' Latest NFT Move Shows Interplay Between Physical, Digital Merch

By Brendan Menapace

Adidas is using real-life apparel to incentivize NFT users to take the next step in their branded crypto journey.

The sportswear giant advertised on Twitter that people who bought phase 1 of its Into the Metaverse NFT series could move onto "phase 2" by "burning" their phase 1 NFT and, in return, receive real-life merchandise based on their NFTs.

This includes a Money beanie, a Hash hoodie and an Indigo Herz tracksuit, according to Benzinga.

Hey Into the Metaverse NFT holders,

It’s time to move into phase 2, claim your exclusive physical ITM merch at https://t.co/m70gU99NQA.
1/6 pic.twitter.com/7RLDQ0rS2b

— adidas Originals (@adidasoriginals) April 28, 2022

We've been watching the various ways brands have melded the digital world of NFTs and the physical world of branded merchandise. So far, we've seen things like hand-in-hand promotions where people get an NFT of a replica World Series ring along with the real thing. (No pun intended on the hand-in-hand thing.)

It's a continuation of the program Adidas launched in January, and it firmly establishes the brand as an innovator in the area of interplay between physical and digital merchandise. This second round of apparel not only serves as a counterpart to the NFT, but is an incentive for NFT collectors to move onto the second phase of a greater metaverse/NFT scheme.

Digital merchandise isn't such a crazy idea anymore. Coca-Cola created what it calls an NFT "vending machine" full of digital branded products, and huge companies like Nike have filed trademarks for virtual merchandise like apparel, bags and accessories that people can either access on metaverse platforms or as branded items for within video games.

So, while we're not entirely sure what "phase 2" of Adidas' whole thing is, it's safe to bet that there will be a phase 3, and to get there might include more real-life recreations of digital-first products.