Latest adidas Originals: Into the Metaverse News
adidas announced that they are rebranding their official web3 Twitter account from @indigo_herz to @ALTSbyadidas.
❗ Why It Matters
adidas expressed that this was their way of demonstrating their dedication as a brand to the future of this space, and it makes sense as the project moves toward Chapter 2 of ALTS by adidas.
adidas originally descended into the metaverse with Indigo (BAYC #8774) as its mascot, and their initial NFT drop back in December 2021 was a collaboration with BAYC, GMoney, and Punks Comic and featured exclusive physical merchandise and ongoing digital utility. But as adidas' web3 presence has evolved, the transition is also a natural outgrowth for the brand.
🎤 Founder Feedback
And in case there were any doubts about the whereabouts of Indigo Herz, adidas also made sure to clear up the fact that their Bored Ape with blue fur is in fact doing fine.
🧠 Learn More
- adidas Indigo Herz Pack Dropping Today (May 5, 2023)
- Adidas Introduces Indigo Herz Fashion Pack (April 20, 2023)
- ALTS by adidas Releases Chapter 1: ALT[er] Ego (April 11, 2023)
- LT Ecosystem Guide - A Complete Guide to adidas' Web3 Efforts (February 7, 2023)
- Adidas Leans Into Web3 Community (January 25, 2023)
adidas' Indigo Herz merch collection -- "made for and worn" by the community -- will be launching today on the adidas website, following an announcement early this morning.
❗ The Details
Included in the collection are the following items:
- Forum Low CL x indigo Herz Shoes ($110)
- Indigo Herz Fur Hoodie ($90)
- Indigo Herz Fur Pants ($90)
- Indigo Herz Fur Tee ($40)
- Superstar x Indigo Herz Shoes ($125)
- NMD_R1 x Indigo Herz Shoes ($80)
Of note, Rug Radio founder @farokh was featured in adidas' promo video as part of the announcement.
🔜 What's Next?
The items will be available for purchase starting at 10:00 AM ET this morning, according to a countdown timer on the website. Explore the collection here.
"I love this! But it would be cool if us alt holders could have some exclusive products tbh" = @Cryptoinsightuk
🕳️ Go Deeper
Universal Key Holders can select a room with their chosen ALT[er] Ego later today, per a tweet from adidas' Bored Ape Indigo Herz.
- Universal Key holders will have access at collect.adidas.com starting April 24 @ 1:00 p.m. ET [7PM Central European Time].
- First come, first serve: transactions will be processed in the exact order they are received.
- A maximum of 40 keys can be used in one transaction, and a maximum of five keys can be applied for the same ALT[er] Ego per transaction.
- All keys used in a transaction for a single Ego will either be successful or unsuccessful.
- If unsuccessful, that indicates that the chosen room is full and an alternative room will need to be selected.
- No partial allocation will occur.
- The claims will be gasless to ensure fairness and avoid gas wars.
❗ Why It Matters
adidas is transitioning away from "Into the Metaverse," and ‘ALTS by adidas’ identity will be the new identity/PFP and a dynamic NFT that will evolve over time.
🔜 What’s Next?
If you don't have a Universal Key, your randomized allocation of your Rift Valley Motel room will take place on May 1 @ 1:00 p.m. ET [7PM Central European Time]. The 175 General Manager [GM] Key Holders currently have access to choose a room.
Welcome to the Weekly NFT Roundtable, where members of the Lucky Trader team weigh in on some of the most pressing questions, news, and events in the Web3 space. The commentary below is purely opinion —not financial advice!
Moon Moves 🦉
Question 1: Moonbirds provided several updates this week, including the plans for $TALON (a non-tradable reward token), the launch of Mythic Eggs, and the upcoming Diamond Exhibition artist list.
The main collection was relatively flat on the news after a brief surge, holding just below a 3 ETH floor, with the new Egg collection opening at .4. How are you feeling about the Moonbirds ecosystem after these updates, and do you think these plans are enough to regain market trust and turn around sentiment?
Tyler: I want to be nice here, I really do. Moonbirds holders seem happy right now, coming out of the NFT NYC event, this new focus on art, and the latest roadmap update session. And I’m happy for them.
But man, the Diamond Nest reward opened at a 0.36 ETH floor price. Seeing that sticker price after holding a Moonbird for 12 months and watching it fall from 40 ETH to 3 ETH in value is tough. But I guess we just need to forget the history and look forward. I like what the team is doing, and I actually think these are probably a good buy here at 2.8 ETH or so, based on the access to art it provides.
Ghost: When in doubt, release an egg! In all seriousness, I do like the renewed project focus on art and what the team has been rolling out. Though like Tyler said, you probably just need a ‘Men in Black’ style memory eraser of the previous price highs to be satisfied. Is that completely on the project itself — absolutely not. We saw a ton of NFTs rise to ridiculous levels during the Bull Market, and it's pretty much impossible for any to meet the expectations that those who bought the top likely have.
While I don’t think I’m ready to buy back in just yet, I could see a nice comeback narrative in the works, and would probably bet on this horse first among the other former mid-caps.
Logan: I am quietly bullish on Moonbirds and PROOF and the renewed art focus. But…given the state of the market, I just can’t willingly jump into anything right now.
As for $TALONS….to the market’s dismay, I think many U.S. projects will likely lean towards “reward points” versus “tokens” as a result of the continued scrutiny and regulatory issues a project or company could face by dropping a coin. Why take that risk?
These seem like moves that should start to stack on each other as small positives, and I do anticipate the market will regain a sliver of trust in PROOF - but it has a long way to go to join in the blue-chip conversation again.
Jason: What blue chip conversation? If it’s not a punk or ape, it’s not a blue chip. I’m not caught up on all the PROOF announcements, but in general, I don’t see how releasing additional NFTs and giving people access to even more NFTs is somehow going to bring back demand for NFTs. Mega rare lotteries for holders? Maybe. But I just don’t want the utility of my NFT, if it has one, to be access to buying other NFTs.
I don’t blame the birds or Kevin Rose, FWIW, it’s just hard to build anything in current market conditions.
Footwear Fight 👟
Question 2: The NFT space saw big updates from both Nike’s .Swoosh platform and Adidas ALTs this week. Nike is launching Gen 1 ‘Our Force 1’ digital sneakers, with a poster being airdropped to 106,453 users on the platform, which will act as a mint pass for the $20 OF1 drop. Adidas is going the PFP route, with ALTS evolving via holder decisions and various traits having specific utility within the ecosystem.
Are you buying either of these projects? Which of the major Web2 brands are doing it better? Do you see these roadmaps having the potential to appeal to users outside of our NFT bubble?
Tyler: Both are doing great jobs with their Web3 programs and are some of the leading brands in the space right now. I covered both in detail this week on the Morning Minute, so I’ll keep my thoughts here more direct. Adidas has done a better job at reaching the current NFT holder base (by using native brand ambassadors, PFPs, etc.), and I think Nike is doing a better job at trying to reach future NFT holders ($20 entry point, community events). It’s actually a really interesting problem that many brands and marketplaces have to deal with right now.
As for buying, I will likely buy some Our Force 1s. Even with 300k supply, I think they could become a valuable collectors item, and if not, at least a nice memory that I was here and active when Nike launched their first digital shoes.
Ghost: While it is cool to see these two major brands taking interesting approaches in Web3, I’m not personally buying either. As someone who invests in projects with the goal of making money, I am still skeptical about large Web2 brands being willing/able to truly reward holders in a way that meets expectations.
In terms of the OF1s in particular — I think the collectible aspect is definitely there for shoes, but this isn’t the first Nike digital shoe we’ve seen (see RTFKT). So I’m a bit weary of that label being thrown around as a potential reason to hold value.
Logan: I am not buying either one of these projects, as I personally have little to no interest in digital or physical shoes/fashion, but I do think both companies are building a strong base for web3 success.
In my opinion, Tyler nailed the breakdown. Adidas has done an excellent job of connecting with native web3 users thus far, while Nike is setting itself up for success in capturing new users that don’t have any web3 presence. The former may allow for more success in the short-term, while the latter seems better for the space overall.
Jason: Who is buying these projects? I’m not, either. But shoe brands in particular have a TON to gain from winning the NFT space. It’s another one of those obvious crossovers with the “normie” world. This battle for sneaker supremacy is just getting started, and it’ll be fun to watch… from the sidelines.
Tax Time 💸
Question 3: This week was the US tax deadline, a cause of stress for many in the space. There is also always speculation on how the time period impacts the broader market, with notable whales like J1mmy.eth selling off assets to pay the tax bill. What was your experience like with taxes this year (did you use a specific platform/strategy), and do you think the deadline has a material effect on the current red we’ve been seeing in the NFT market?
Tyler: I underestimated the impact of the tax man on the NFT market. It certainly took a hit in those last few days leading up to 4/18. I guess I thought degens would plan ahead more (a laughable thought looking back). I actually did my taxes a few months ago and had mostly forgotten about them. Luckily, we should not have this same problem in 2024, as <5% (<1%?) of degens will have NFT profits to worry about.
Ghost: I honestly thought that after a year of time, some of these platforms would have gotten more accurate and easy to use — however, if anything it felt like things got worse. The added factor of Blur really seemed to trip up a lot of the transactions, and just like the previous year it was a huge pain in the ass. Can the IRS just set up a wallet and we can code it into the smart contract to just take a percentage? I’d bet they’d like that!
In terms of the market, I think it’s a perfect storm right now of crypto going up, taxes being due and broader macro issues and the depths of an NFT bear really making things dire for NFT liquidity. It is extremely difficult for any project to see a sustained rally right now — and I don’t envy founders who are trying to appease angry degens.
Logan: I’m with Ghost, it was just as miserable as last year. I actually switched from CoinTracker to TokenTax this year, but every year I am full Donald Rumsfeld letter.
It’s difficult for me to say just how much impact the taxes thing has on the market ahead of the deadline. I guess this year might have been different just because liquidity was available (even for dusty collections) with Blur’s bidding system. But, it seems we felt very little ripple at the end of calendar years (when you’d also expect dips for harvesting’s sake).
I just think the market is weird. Too many variables. Degens don’t know what’s going to happen.
Jason: I don’t think the issue is planning, but rather a lack of clarity about how NFTs are taxed for whales. Calculating taxes is difficult when you trade with that much volume. Thankfully, I never sell, so I didn’t really have to worry about it.
Meme Money 🐸
Question 4: While the NFT markets have been slow, the focus of many in the space has shifted (at least briefly) to chasing Memecoins, with both $PEPE and $WOJACK seeing massive gains and excitement over the last few days. Have you been participating at all in the mania? What part of the cycle is this, and will we see any of the gains flow back into JPEGs?
Tyler: I saw $PEPE around a $7M market cap and was too lazy to ape into it. I then begrudgingly bought some $WOJACK on Tuesday, mostly as an emotional hedge if these coins go absolutely nuclear (which seems possible). In fact, most of the narrative I’ve seen from buyers lately is those who are just too afraid of how they’d feel if PEPE hits a $1B market cap.
It does feel like altcoin SZN got skipped and went straight to shitcoins. Many are calling for crypto to fall here in the next few weeks, so this is basically just high-stakes rocket game - how long can you hold before it crashes? And will any of this rotate back to NFTs? Probably not on any meaningful scale…
Ghost: I bought some $PEPE, and haven’t chased any others — it’s not an area I feel super comfortable dealing in, and the scams/honeypots are around every corner. That being said, the memeability of PEPE is bringing some fun and dopamine to a space that feels pretty dead right now. Hopefully some of the newfound liquidity comes back into (my bags).
Logie: I actually own both $PEPE and $WOJAK, and I don’t really know why. I’ve performed well, up multiples on both - but I have absolutely no clue what I’m doing. I have no real plan and this is basically my first time branching into the completely degen memecoin waters. I’M SCARED.
In reality, I don’t really anticipate any of this coming into the NFT market right now. There just isn’t anything fun to speculate on in jpegs right now. I guess maybe some of the newer ones, like Nakamigos, could see some inflows from newly minted memecoiners? I don’t know. This feels like an isolated event from a bunch of people who are bored and have way too much internet money.
Jason: I agree with Tyler, and we’re already starting to see Bitcoin and Ethereum retrace a little bit. We’re in for dangerous, unpredictable, and volatile times over the next few weeks and months. I can’t stomach that at the moment, so I haven’t been playing the Memcoin casino. Even if some of the profits do flow back into the Memcoins with pictures (NFTs), it doesn’t matter. There has to be a real reason to buy NFTs outside of price action before the market turns around. Right now, there are a lot of promises and near-zero execution.
Meet the Roundtable:
Ghost: Ghost is an NFT analyst at Lucky Trader. He has been in crypto since 2017, and entered the NFT space via NBA Top Shot in January of 2021 before minting Bored Apes and degenning into the broader market.
Tyler: Tyler is a high-volume NFT trader, having reached the top 100 in NFT sales revenue using NFTBank’s rankings, a Pengu maxi (in Luca we trust), and a writer for Lucky Trader. Tyler’s writing spans market analysis, news breakdowns, project ecosystem overviews, and web3 opinion pieces.
Logan: Logan is a content lead at Lucky Trader and is best known for selling every good NFT far too early. He also maintains an irrational exuberance for clay-based NFTs.
Jason: Jason is an NFT lead at Lucky Trader. He has been involved in the NFT space since CryptoKitties in late 2017, and, like most, he lost a lot of money on Top Shot in early 2021. But nevertheless, he persists (with his Series 1 Legendary From The Top LeBron James Block).
adidas' Bored Ape Indigo Herz announced that Chapter 1: ALT[er] starts now.
- Your ALT[er] ego is the first of many traits for your ALT identity.
- There will be 8 different ALT[er] egos with different rarities.
- In addition to the utilities available to every ALT, there will be an exclusive utility that is determined by your ALT[er] ego to provide further benefits tailored to your interests.
- At the end of Chapter 3, you will get a unique PFP consisting of countless trait combinations with a rarity rank.
- The story will progressively unfold and continue through April, and the first moment that will influence your dynamic NFT will start on April 15.
- No future utility will be provided for Into the Metaverse Phase 1 and Phase 2.
❗ Why It Matters
This is the first step on the journey towards owning an ‘ALTS by adidas’ identity, and ALTS will be a new identity/PFP and a dynamic NFT that will evolve over time through an interactive storyline.
🔙 Back It Up
adidas is transitioning away from "Into the Metaverse," and the project has requested that holders burn "Into the Metaverse," Phase 1 and 2 NFTs, and mint into ALTS by adidas (the official and final “Phase 3") to be part of Chapter 1.
ALTS by adidas is a dynamic NFT that evolves based on your decisions and engagement. adidas notes that ALTS by adidas is more than just a PFP:
- provides exclusive access to the adidas web3 ecosystem at collect.adidas.com.
- is a unique, interoperable avatar and PFP consisting of countless trait combinations with a rarity rank.
- includes an interactive experience through creating, collecting, and engaging.
🔜 What’s Next?
More details on the different ALT[er] ego traits and utility are coming tomorrow.
🎬 Take Action
- Visit collect.adidas.com/ to watch Chapter 1, burn ITM Phase 1 or 2 into your alt, and/or dive deeper into the Rift Valley Motel.
🎤 Community Quotes
🕳️ Go Deeper
During an interview at NFT Paris, Erika Wykes-Sneyd, the web3 lead for adidas, mentioned the popular sportswear brand was compelled by the idea of token-gating future sneaker drops, according to a report from Decrypt.
❗Why It Matters
Sneaker drops have historically been notoriously botted events, and this is an area that may be ripe for web3 adoption. Token-gating future drops would allow adidas to curate its customer base similar to the way NFT projects have operated allowlists.
🔍 Need to Know
- Wykes-Snyed said adidas had also explored crypto payments plug-ins, but that they're unsure that really solves a problem.
- The adidas web3 lead also mentioned the idea of token-gating future sneaker drops to certain communities, for example Apecoin holders, was intriguing.
🎤 Founder Feedback
[crypto communities] can beat the bots, and not have to play the game of waiting for the sneaker drop, and getting the L. That's stuff we're starting to scope out now.Erika Wykes-Sneyd
Newly formed /// Studio (aka Three Stripes Studio) will manage adidas' Web3 presence, according to a tweet from adidas' Bored Ape Indigo Herz.
What It Means
Three Stripes will represent the interests of the adidas community every step of the way and, "takes responsibility for the development and delivery of all adidas global Web 3.0 activities, working to define the brand's strategy, partnerships, community & activations, and product for the road ahead 💪."
In other words, the team will act as a liaison for, and within, the adidas community.
❗ Why It Matters
In the wake of the Gutter Cat focus groups and amidst the community outrage over the Porsche 911 mint price, a key takeaway is: "listen to the community" adidas is striving to stay in tune with the needs of the community by hiring members with voices (and recognizable PFPs).
🎤 Community Quotes
LFG! Love that fact that we reached a point where we recognise people by their pfp 🔥direkkt, co-founder of RumbleKongz
The Macy's Thanksgiving Day Parade's metaverse counterpart will take place on Thursday at 9 a.m., with viewers able to vote for one project to become an IRL balloon in next year's physical celebration.
Five galleries from NFT collections are available to explore in the OnCyber metaverse during the parade, featuring Boss Beauties, Cool Cats, gmoney, SupDucks, and VeeFriends. The contest lasts from Nov. 24 through Sunday, Dec. 4, with holders of the five featured projects carrying additional voting power. Gmoney qualifying projects include CryptoPunks, 9dcc, Admit One, and Adidas Into the Metaverse.
The metaverse parade and contest can be accessed Thursday on Macy's website, and the first 100,000 voters will also receive a free Macy's digital collectible.
The Adidas Originals: Capsule Collection from Indigo Herz will unbox today at 2 p.m. ET and the NFT will reveal on the Adidas site.
The reveal is open-ended, according to Herz, and to reveal, holders of the Capsules will need to burn their NFTs to receive a new token. Burning the Capsule will cost gas.
There will be a Twitter Spaces with the Bored Ape Yacht Club founders, Herz and Adidas Originals' @heyerikaws after the reveal around 5 p.m. ET.
The Capsules were airdropped back in June to holders of the Into the Metaverse Phase 2 NFT.
Nearly three weeks after putting the partnership "under review," Adidas has officially terminated its relationship with Ye, formerly known as Kanye West.
The termination is effective immediately and is expected to cost Adidas more than $240 million in profits, according to the New York Times report.
The recent behavior and anti-Semitic remarks from Ye had brought major scrutiny to the brands with which he partnered, most notably Adidas.
Until the announcement this morning, the major retailer and clothing manufacturer had largely been quiet while the partnership was under review, much to the chagrin of many, including Bored Ape Yacht Club co-founder, Wylie Aronow.
"As a Jewish person, Kanye’s anti-semitic vitriol has been horrifying. I don’t want Yuga involved in anything related to him. We’re reaching out to Adidas to see what their plan is. I don’t blame Adidas for Kanye’s actions, and trust they are going to make the right call," said Aronow in a statement yesterday.
Yuga Labs partnered with Adidas on its web3 initiatives late last year and a Bored Ape NFT remains the face of the "Adidas originals: Into the Metaverse" NFT collection.
Amidst the uncertainty, the Adidas Originals collection was down five percent in trading yesterday, with many of its sales on OpenSea coming via accepted offers.
Aronow, nor Yuga Labs has commented publicly on the termination of the Ye relationship at this time.
This is a developing story that will be updated by Lucky Trader as more information becomes available.