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Innovation

Product strategy

Rapid Prototyping

Nike Cryptokicks

/

2019

Strategic vision that kicked off Nike’s virtual product business unit

Innovation

Product strategy

Rapid Prototyping

Nike Cryptokicks

/

2019

Strategic vision that kicked off Nike’s virtual product business unit

[ The Backstory ]

Delivered by the founders while leading Rehab Studio, prior to founding Cyphr.

Nike Brand Innovation, with former CMO Greg Hoffman at the helm, has always been about pushing boundaries. As the creative engine behind one of the world's most iconic sportswear brands, they came to us with a challenge that would redefine their connection with fans.

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[ A Bold Challenge ]

Nike had a bold challenge: how do you meaningfully connect with millions of global fans every single day? The traditional playbook wasn't going to cut it. There simply aren't enough physical products to reach that scale, and advertising is too expensive for daily global engagement. Nike needed something completely new to stay culturally relevant without relying on their usual approaches.

[ Our Fresh Approach ]

We suggested something that might have seemed wild at the time – virtual ownership. By establishing crypto collectibles as legitimate consumer products, we introduced the concept of digital Nike sneakers that fans could buy, trade, or earn across platforms.

Our playbook was hands-on from the start. We dove deep into immersive research with sneakerhead and gaming communities to understand what would truly resonate. This wasn't just about digital assets – it was about capturing the culture. Through rapid prototyping, we developed SneakerDNA, a breakthrough system that could control colorway and style generation to create authentic digital kicks that true fans would value.

This forward-thinking strategy used blockchain technology to create authentic, ownable digital assets, even securing patents (like US10505726B1) along the way.

This early work helped pave the way for Nike's acquisition of RTFKT (a virtual fashion leader) and the launch of Cryptokicks – Nike's first virtual sneaker collection for the Clone X community. The project was huge, generating over $180 million in virtual product sales and leading to the creation of Nike Virtual Studios, which now houses .SWOOSH, Nike's dedicated Web3 platform.

[ Reshaping Nike's Digital Future ]

Our work didn't just create a new product category – it transformed Nike's entire approach to digital engagement. The strategies we developed became fundamental to Nike's broader digital ecosystem, setting the stage for major gaming partnerships that would extend their reach even further.

These foundations directly influenced Nike's groundbreaking partnerships with gaming giants like EA Sports and Fortnite. Nike now enables fans to bring their digital style into their favorite games, creating a seamless bridge between virtual ownership and gaming expression. Players can now sport their digital Nike gear across multiple platforms, creating an ecosystem where digital collectibles have real utility and cultural value beyond just ownership.

Our strategy didn't just create digital versions of physical products – it completely reversed Nike's traditional product development flow. We pioneered a digital-first design strategy where community became the testing ground for physical production.

This revolutionary approach allowed Nike to gauge interest, test designs, and build communities around virtual products before committing to physical manufacturing. The strategy culminated in Nike Virtual Studios dropping its first physical sneaker – the .SWOOSH Genesis Hoodie Air Force 1 – a design that started life as a digital collectible and transitioned into a highly anticipated physical release based on community engagement and demand.

[ What We Achieved ]

Our work catapulted Nike into the Web3 space, laying strategic foundations that directly influenced their acquisition of RTFKT and contributed to over $180M in virtual sneaker revenue. We helped set the vision for Nike Virtual Studios and the groundbreaking .SWOOSH platform while protecting their innovation through blockchain patents. These efforts extended beyond Web3, laying groundwork for major gaming partnerships with EA Sports and Fortnite, creating an ecosystem where Nike becomes integrated into a gamer's digital identity.

[ The Big Picture ]

By rethinking what a "product" could actually be, we helped Nike unlock a completely new way to engage with consumers. Virtual collectibles gave Nike the power to reach a global audience daily without physical inventory constraints or traditional ad budgets. It was a game-changer that positioned Nike as a continued leader in the virtual product space, connecting with fans wherever they play and express themselves.