RTFKT Cryptokicks and the future of Nike shoes

Transcript

GM GM welcome to web3 Academy your one trusted source to capitalize on the next big phase of the internet don't get caught in the hype cycle I'm Jaybird joined by guest host t-pan and we believe that crypto kicks are going to change the world that's why we're carving a pass for doers to confidently build and invest in web 3. t-pan what's up my man welcome back to the show hey hey Jay always a pleasure thanks for having me back excited to chat and go a little in depth in regards to what artifact has been up to and their latest release that has arrived at the doorstep of many holders man I'm stoked so we heard a few weeks ago that artifact was

finally ship shipping crypto kicks these are physical sneakers that if you're an artifact holder you could Forge your nft and TPL get you to explain a bit about that process in a second and I thought I was like who do I know that my pair of these sneaks and boom I hit up our resident sneaker head t-pan and lo and behold he he had a pair I don't think he first had a pair a few weeks ago but I asked you and you're like yeah it's coming in the mail and now he's got the pair and so we got him on the show so that we can chat all about this Auto lacing Tech and the app and all this really cool future shoe Tech stuff which is yeah just I mean got me really really

excited so excited to dive into all that before we do t-pan you just give everybody a little bit of a brief intro of yourself maybe a bit of your background yeah sure thing so background have spent about a decade in growth marketing Performance Marketing marketing related roles in Tech I'm based out in the Bay Area in California jumped into web 3 thanks to Dapper labs and NBA Top Shot like many different folks got sucked in realized there was in my opinion a lot more to this space than just the money that got me here and interested but also just interested in regards to what I I believe is sort of one of the next larger paradigms an emerging Tech Industries in this space and it will impact many aspects of Our

Lives whether we know it or not and in regards to where I'm spending my time now I started off by writing my blog web through with tpan I still do that twice a week it's a creative Outlet of sorts and just a great place for me to show my observations opinions and thoughts I work at ethereum foundation in a small team building out a product accelerator I'll leave it at that very early stages but exciting and humbled to to work on building something new with the super smart folks there and also Consulting and Advising with different companies in the space because I really want to see this space flourish so sort of all in in a lot of ways amazing amazing last time we had you on the show I don't think you

were at ethereum Foundation yet so congrats on that new role super excited for you with that hopefully at some Future Point point we'll be able to have you on the show to talk about what you're building there very very exciting okay let's talk about this shoe so just a little bit of quick background there is 5 000 I think it's not exactly five thousand it's about five thousand of these shoes that have been shipped out to the artifact holders who forged an nft and as a result got these physical shoes in the mail and this is yeah this is our first our first look at them I mean I'm sure people have looked at them online but tfan you got them what what do they like yeah I'll start off for the

folks that might not be as familiar with artifact and even how you might spell that so it's like artifact as if you were on an archaeological dig and searching for historical artifacts that's how you would pronounce it and that might be what you think it would be spelled as however is spelled uh you know maybe more with the younger folks these days much cooler but rtfkt so if maybe in some alternate future or in six months or something you start seeing these cool looking kids with their oversized clothing and you know loud whatever it might be and on their feet is maybe a lightning bolt sort of logo combined with Nike or maybe

not and also with the word artifact spelled rtfkt well that's what we're talking about today and this company has been around since 2021 they were an independent company with some really sharp folks on the creative side and also with a great eye and sort of skill set related to physically creating goods and they created different models of sneakers actually independently starting from really great 3D models and nfts and then actually shipping that to their holders they did collaborations with very famous artists in 2021 the sort of fandom around these group of Builders and this brand started to grow organically along with the sort of bull cycle in 2021 and in December

2021 it was announced that they were acquired by Nike so this is maybe we'll go into a little bit more depth later but notable for a lot of reasons it's Nike you can imagine a company that's sort of creating and Manufacturing their own shoes getting a lot more potential Firepower across the board in terms of support to maybe make this something bigger so this is one of the brands under Nike and Nike is not let's say the most generous with one who they acquire and the brands that they sort of openly claim are under their umbrella right there's only literally a few Hurley Converse Jordan and now artifact right

Nike itself is obviously a huge huge huge mega brand so just something to take note of even in their announcement you know standing side by side as a logo with with Jordan not to mention all those other brands under Nike is quite notable so there's something and and much more backstory there that I won't go into and so over the past year or so there have been multiple releases in terms of what has arrived in the hands of holders merch is a little easier and this is associated with the nft they're they're sort of Genesis nft collection specific to a larger broader base of holders called clone X so they're in Clone X there is a trait called DNA

and with each DNA there is sort of a different style Rarity is attached because some dnas for example reptile there is only I believe 60 of those versus let's say something like human there are over 10 000 approximately about 10 000 of those very different sets of Rarity associating to different things you can get so over the past year there's been merch associated with the DNA there's been sneakers more recently there has been a collaboration that is still sort of pending shipping should be actually in about a month or so of Nike X artifacts so that's a collaboration Nike X artifact Air Force Ones so this is full on a Nike sort of

model one of the best selling shoes ever but Associated and collaborated with artifact and that's based on the different dnas that we see this one that we're going to be talking about today is called the crypto kicks IRL IRL stands for in real life and they are here in real life as well as on the blockchain and this is a artifact specific shoe there is no Nike branding it's artifact branded but probably with a fair amount of Nike Tech Etc um Kyle uh sorry jay oh my God uh it's okay yeah all right Kyle wherever you are I'm sure you'll listen to this too this is a dress to you but yeah artifact branding and you could see that there's some inspiration from the tech and also the

design from Nike but a lot of it definitely came itself it's very interesting The Branding part that you bring up and I think we'll dive into that a little bit later of this one as you said is just artifact but future ones are gonna have Nike logos list on them as well and you know obviously throw a Nike logo on something that's a massive deal okay so let's take a look at the shoes and let's dive into the mobile app and I want to talk about where this is going around around you know quests and move to earn these shoes have an NFC chip in them we'll explain what that does and how that relates to on-chain activity and then we'll also talk about you know how do people get a pair of these if you want a pair these

they're obviously very limited edition we'll talk about all of that as well as nike.swish integration before we do it's going to take a minute to hear from our sponsor modern newsletters are built on paragraph that's right paragraph is a brand new newsletter platform that combines the best parts of web 2 and web3 to supercharge newsletters for both writers and readers build a community not just an audience paragraph uses blockchain Tech to allow readers to collect and own the words that matter to them this takes reading a newsletter to the next level with paragraph readers can mint collect and show off quotes from their favorite newsletter this opens new possibilities like creators

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t-pin give us a look at these shoes I know you got them next to you are they on your feet all right where are they I have a standing desk so I think it'd be pretty hard for me to bring my foot all the way up here silver feet that ball flexible but unfortunately not I guess but these are it I have the blackouts so these are a little cleaner in regards to the color they are pretty much all black you see some teal or I'm not sure what the proper color is so I don't want to misspeak here but what else you can notice is there is you know this sort of what typically might be like an air Soul area but this isn't because there's actually lights here

I'll turn it on in a second so for our listeners here that can't see like this looks like a regular running shoe to me right it's a very stylish black regular running shoe it's from like you know a quick look right but then yeah there's no lenses it's a little generous okay okay I think what's noticeable is there's no laces for sure if you're looking for on the front just what typically would be a lot of laces and what you would see there it's just more almost like sort of velcro or pseudo velcro it's obviously not velcro but like it's almost like if there weren't strings here or a motor you could just rip it off right and there's like these shoes that look a little bit more like that or like a slip-on right those are

obviously getting a lot more popular these days mules slides Etc and looking closer you could see that there is arguably some version of lacing but it's not like a typical shoelace you sort of see almost a couple of threads which is the mechanic in which you would tighten the quote-unquote laceless sort of looks like a wire almost like it looks like a really like uh yes that would be the term I would use yeah I think you're right more a wire than a thread it's not it doesn't feel like metal or anything but it's thinner it seems a little bit more resilient than a lace for its purpose and back to your comment these do look like you know do these just look like regular sneakers yes a no I think

yes because it's clear that these are sneakers uh it has all the components of a sneaker minus a traditional shoelace but there isn't exactly any silhouette that looks like this it's more like a basketball sneaker it kind of looks in between a basketball and a running shoe yeah yeah a little bit of both but also you're like okay well you know what's this thing in the front you know what's going on the back has some ridges that's a little loud and I think with a blackout it is a little quieter to say than there's there's a color called the space matter basically the Galaxy was printed on a shoe a little bit it's got a lot more of the purple Hues got a little bit more of the you know the star

looking components let's say and that would definitely catch more eyes and also probably for the people that notice they'd be like wait a second that's not your average shoe what's going on so it definitely has some thoughtfulness that isn't completely wild and out there it's not like anyone might that might recall the name or what it looks like the sort of Crocs looking boots by Mischief those big red ones that became memes and people just bought them for the cloud for like thousands of dollars not like that right it catches eyes but it's not like okay this is like I'm gonna post this on Instagram and like turn this into me I'm not quite and it did that's one of the the points and I think why I say it looks like a regular shoe is not to downplay it more to highlight that it's a a nice looking

shoe not a like exactly what you said a Mischief or I'm not a sneaker head or a Yeezy or something which like to me are just like very ugly and not even comfortable like this looks more the things that stand out are really the tech so you got the auto lacing the light the motor I think you showed us is in the bottom what's it like to put these things on are they coming no let me first turn on the lights I mean and maybe see if you can hear it but you can see the lights it vibrates as well so you obviously can't see or hear it but it vibrates when it's charging it's vibrating when you know you hold the buttons there's this lighting mechanism so this is separate from the actual motor right this is like when you were a

kid getting light up shoes a little bit and the point of this is you got different quote called light packs that either match your shoe or can just be whatever you're feeling so that's that's a fun little feature I wouldn't say it's the feet definitely not the feature I think to different folks and again to be clear I'm an artifact fan really really obviously I bought a pair of these have many other pairs of sneakers coming I think to some people it could be tacky it's like sort of you know fun but also if you're just like well you wouldn't wear this probably to a business meeting but I think you guys get the point where it's like yeah light up shoes like no one really out there wears that unless

you're like a kid right and that's cool so right time right place a little bit more it's not like you just wear this literally to everything well like maybe an Air Force One you can wear to business meetings you wear to a you know sneakers or one at weddings now for like bride and groom right they're into that but yeah to to the point of the app a little context here about the app it actually the first version released about a month ago I want to say based on some light research I did and without much fanfare because I think intentionally artifact is just slow playing this even if you download the app I think for a very very large majority of people or for anyone that doesn't have a pair of sneakers coming

soon or maybe arrived at the doorstep recently you can't do anything but you can see I mean not to say that you can't explore what's going on but it's somewhat Limited in terms of capability the purpose of this app is to connect to the show yeah to manage you know connect your wallet show that you have the nft and then manage the shoe as a result of your ownership of the nft does it is that how it works explain to us sort of like the approach yeah elements of that so primarily it's for people who own artifact nfts or Collectibles physical or digital but I think there is a large component of the app for the physical owners because stats where you can either manually on the shoe itself so

showing it again there's two buttons here that I was pressing earlier one's a plus one's a minus used for syncing the sneaker used for manually tightening or loosening the sneaker but it's connected if it's connected to the app if and when it's connected to the app you're able to control it from there with the different fits and you can have different modes you get multiple modes so default what they have is something called active mode so it should be a little tighter because you might be running jumping Etc playing basketball Zen which is more relaxed fit right you're just like hanging out with friends sitting down working whatever so that's typically less tight and then you have the the third default is the unlace so it goes to zero right in terms of tightness and

you take those shoes off the other tab is called it is for lighting so I imagine the light packs things like that that presets I do wonder if in the future they will allow for customized life packs which would be interesting for the Creator Community as well as individuals to do whatever they want the third tab is sort of their news and notifications Hub so it has new drops it has General artifact news has upcoming app features and in particular that's probably the thing that caught my eye the most in the app where there's an image and also text saying that there was the IRL Quest leaderboard the first IRL Quest is coming and the image is basically an

image of one of these sneakers let me see if I can show on here so so this is the space matter so you can see it's a lot more colorful you see some just louder colors there but still predominantly black or darker but then it shows like first second third place a leaderboard and also like in in this case 45 309 steps as an example so there's gonna be a lot more coming in regards to what you can do in the app associated with the shoe and then the last tab here is your inventory tab which is connected to your artifact account so showing all your artifact related digital Collectibles and nfts and I have a good amount since I've been there since earlier days and have purchased or forged a good amount of

things but it's cool to see a more closed manner in which all your artifact related collection shows up in this app and is associated with you not just on something like openc Etc so that's a brief overview of the app and what it looks like yes so we've got a whole bunch of different texts at play here this new shoe Tech around Auto lacing lighting isn't really new shoe Tech that in kids shoes for a long time but we've got these lights that maybe there's some new tech in there I'm not sure the background on that we have this motor we haven't really seen shoes with a motor before that's new the way that they charge they've got this like a pad that you put it's got all this new like

hardware and Tech around the shoe which is cool and interesting but I don't necessarily think that's fun but it's not gonna lead We're Not Gonna all of a sudden have millions of people go out and buy the auto lacing shoes right like we all have shoes we're happy with them what is more interesting to us and you know web3 Academy and the crypto world is the integration with nfts which gets more into the quest side so let's just chat a little bit about where we see that going what that could look like because basically so maybe actually let's step back for a second can you just quickly explain how forging works tpano and how you actually

got these shoes yup totally and real quick here's the charger so by the way USBC so hey Apple you know just switch into USBC you could like this is all interoperable oh whoa but yeah pretty flat you know pretty nifty very portable so anyone people that want to rock their shoes around the world are pretty nifty and yeah you just similar to actually charging your iPhone or whatever the device might be wirelessly similar fashion here you put the sneakers on and it just detects it and it charges so that's pretty cool so wireless charging there yeah starting with forging so historically so far this may change so we'll see but artifact has a forging concept with its digital to physical

Redemption is one way to put it but initially you need to purchase a nft that is regarded it as a pre-forged nft right or digital Collectibles so you need to purchase first effectively as a version of pre-purchasing but also I think what pre-forging as that state allows is you can uh buy and sell that before any of the further next steps which is actually sort of nice now that I'm talking out loud I'm thinking about it like why is there this pre-forged step versus what I'll talk about in a second forged step it actually creates that ability to buy and sell on secondary Market before the forging step

which historically comes you know anywhere from several weeks to a few months later but those timelines may change as they sort of tighten up production timelines or general go to market timelines you basically redeem that item or digital collectible or nft for the physical that arrives at a certain time later and by redeeming that or forging it you need to provide your address all that button stuff right so pre-forging allows for that window to get more if you're limited or other things like that and then forging means like hey you put in your address it's going to come to this address and in x amount of time so there have been three collections specific to

the sneakers that have reached the pre-forged uh sorry two sets of sneakers under this sort of larger audience for artifact that have reached that pre-forged and forged state so one is what we're talking about today with crypto kicks IRL and the second being the artifact Nike Air Force ones that I also mentioned there is a third there has been a sneak peek on social media it is called the artifact Nike Dunk Genesis so that will have Nike branding co-branded with artifact and that is based on for anyone that is into the sneaker world based on the Nike Dunks also very very popular silhouette and

model but you know in the artifact fashion so that is not released yet there's no preforge yet but they've shared sneak peeks and won't be out soon whatever that I mean probably in months maybe in a couple or something like that yes so this foraging as a concept is so it's really just we're adding another step to purchasing a physical item by saying okay you're going to purchase a digital item first you can sell it on secondary which as you said t-pen is very useful it's a much easier way than you know selling a physical item on secondary is much more difficult but I just think like any brand that sells a physical item especially limited edition

ones I'm not talking about like you know Gildan t-shirts here or some Mass Market brand it makes no sense to do it digital first but if you are any brand that sells a physical item like this is a simple way that you should be looking at blockchain and using blockchain if you're a a Vineyard and you produce wine every year well look at selling a digital first and then they can redeem this gets to this whole redeemables category a lot of people are focused on right so don't necessarily want to dive too deep down that but I do think that that is a great use case for blockchain that is only Now sort of coming to light and being experimented on more and more I like Ledger did this as well with their with Stacks you didn't buy the

physical version of stacks you bought an nft and then you redeem it for the physical version and it allowed them to actually predict demand before which I think is another great thing about this if you're producing a physical item you can sell the digital and then worry about producing it so long as obviously you can produce it in a timely enough manner okay so then the the shoe itself comes to you you forge the nft you get the shoe yourself in the mail the shoe has an NFC chip in it let's just chat about that right I know yeah I call it the world merging chip and they have their own branding for what does that allow how does that work yeah and add a little bit more color to what you're

saying this is an NFC chip at its Bare Bones right our phones have an NFC chip uh regardless of what phone you have lots of different physical products have that with credit cards it's not necessarily actually I could be wrong I might be misspeaking so correct me or let me know if you know Jay but like credit cards you can tap to pay right maybe not the exact same thing maybe it's RFID not entirely sure but like there's sort of tapping functionality you could do the same with phones you could share contacts all that fun stuff you could do that with physical apparel now right and this it's not like artifact made this up and we're the first to ever do that that has been a novel and sort of very like Edge case concept but you can add something into your clothing or the jacket I'm wearing

or the T-shirt I'm wearing and they're actually doing that and have done that they've done that actually with their merch they shipped right in the jackets the pants the t-shirts not the hats not the socks right that's a little clunky probably makes sense to not do that but like all the other merch as well so just note that artifact has more plans likely in mind in regards to everything that they ship out with this world merchant ship they branded it as World merging chip which is pretty cool WM chip you can sort of visualize a little bit of what they're trying to do with this chip it's not just a standard NFC chip credit card does have an NFC chip NFC right it actually says I just looked it up

quickly apparently both are used in a credit card so I don't know if that means both are used in all credit cards or if you know certain credit card companies pick wow but the point there is though like it just shows how small an NFC chip is right it's and also yeah it not only is it small but like this concept exists right like on a shoe that's one thing but the concept in terms of your day-to-day life whether you use it or not as well right it's on your phone tap to pay it's on your credit cards or debit cards or whatever tap to pay it's existed in many different ways so I think that's important to understand and it's not like oh this came out of nowhere like this is so dumb where it is novel like let's be real and it takes time wait why

would I scan something on my t-shirt right yeah it was good and there's thank you that's my you know yes it exists but not in a shoe not in a t-shirt why do we all right let's get into that t-shirt where does that go yeah so let's start with what clearly uh for for a fact artifact is doing specifically with their app and also this first shipment of sneakers unlikely what's coming so the best example is the IRL quests that they have so Supply is 5993 for this whole uh silhouette of sneakers let's say right four different colorways so those Supply differ but in total for this IRL sneaker is 5993. if you know anything about this

space let's just say not everyone is going to open up the box and wear it there are plenty of people I did not have the foresight at the time to purchase multiple but if I did I would do the same is I would do something called like rock One stock one right just put one in the closet I have this with other sneakers I will do this with the next shipment of Air Force Ones coming myself but you know 5993 means in total either in circulation just like nfts too right people voltage right they don't touch it they leave it there so same thing here right so let's just say in half about 3 000 maybe like actually worn open Etc so with what happens here with the NFC chip when I did this over the weekend you

scan or you you hold your phone close to the sneaker you pair it so authenticates and verifies that your app and your phone is associated with this pair of sneakers and then you're able to do the customization on the lacing the lighting Etc but also in the future when the feature comes out when you take steps and they might be pairing with the health app and other things when you take steps that will show up and be associated with your sneaker and also your phone right or maybe I'm not sure about this but maybe there is some very rudimentary step counter in the sneaker which is arguably even better so to say than an iWatch or something like that because it's on your feet versus me moving by hands so when we think about

NFC it gets interesting because the very obvious use case again already Illustrated and will happen not sure exactly when is Quest right so you can go different places take steps and the rapid rewards and whatever it might be more merch sneakers something specific to the artifact ecosystem they haven't introduced yet who knows maybe it's just Cloud you're able to have these integrated experiences and just you know extrapolating a bit here whether it's Nike or Adidas Puma et cetera they haven't had this integrated app experience before tying your direct activity I'm saying specifically direct activity because Nike has a portfolio of apps have done an amazing job with a

digital strategy but like they have fitness apps things like that you could like you know connect your activity they know what you're doing but it's not like you're wearing a pair of Nike shorts and they know that you're wearing the pair of Nike shorts and you're working out let's say at home or outside or at a Nike store this gets a little interesting right so I could be wearing my crypto kicks or maybe in the future just a pair of Nike shoes right let's extrapolate a bit out hypothetical so be clear but let's say I go to a Nike store if I'm wearing my Nikes at the Nike store maybe I get an extra three percent off my purchase why not right I'm not saying like why well like hey it's for Branding purposes it's to encourage

incentivize you to not only purchase the thing but use the thing you purchase and as a result maybe you get a bonus there right and this is a very early version of showing what happens when you sort of quote unquote just connect right so now my app and to a degree artifact knows what I'm doing and how much I'm doing with my sneaker right I mean yes maybe I could walk a hundred thousand steps in two days at home right but one I'm still wearing it but real more realistically if there's a hundred thousand steps taken in two days I'm probably outside and that probably means someone else is also or many other people are seeing what I'm wearing right and now that

could extrapolate to already talked about the Nike retail store potential experience maybe I go to an artifact event Halfway Around The World I'm wearing my artifact sneakers maybe I could scan it or maybe there is some way for them to identify from geolocation that I'm at this specific event during this time period That's art that's an artifact event maybe I get some bonus maybe they note that and then in the future they airdrop something or reward me with something or there's a token gated access that they Mark whether it's through a metadata trait whether it's through something else that they identify and they're like hey we know you're here and we also know you've taken a hundred thousand steps wearing our sneakers in the past month and we want to give you or give you access or

something just as a little thank you right so when you think about engagement loyalty actually literally walking the talk this gets interesting purchasing a shoe doesn't mean you're wearing it right and by wearing a sneaker sneakers have logos it's an ad at the end of the day Brands wearing a brand and for the record wearing this right t-fan's wearing a Nike jacket jacket I might add for those lessons a little bit yeah thanks but like what do you get for that right I already paid you and that's okay this is a new paradigm right but it gets sort of interesting like I'm a walking ad for Nike right now yeah I'm wearing Adidas on my feet oh what we can't see yeah yeah those are just like my comfy indoor

sneakers outside but I'm just I I'm outing myself okay last example here that gets interesting what happens right I talked about their merch artifact merch also I have to add a c chip what if I'm wearing an artifact t-shirt also the jacket maybe pants and some sort of artifact sneaker maybe I get a bonus multiplier maybe that gets all scanned and something else fun happens over time right maybe it's at a Nike store maybe it's at an artifact event maybe it's just out in the open and this is all interconnected and noted right yes I had to do more scanning maybe if I do a full-on fit I need to have that verified somehow but you might get something for that right and again it goes back to

loyalty it goes back into engagement not just transactional loyalty this goes into experiential or sort of action-oriented loyalty right so this gets really interesting and I think that's what gets me excited about what will happen in the future in terms of that minimum following and to a degree participating but also what that means for other companies other brands the future of interaction directly indirectly the future of loyalty in regards to transactional experiential And in regards to actually sort of walking that talk which gets very interesting as well because there's a lot of different ways to show that

loyalty and I think expressing it in the existing passive way is sort of established as like just the way it is what does it look like in the future especially with apparel and Brands how can you verify that hey this is my favorite they were sure I wear this every day or like I wash it every week by wear at least one day a week that's very very valuable versus you get even more valuable than just purchasing that 20 or 30 dollar shirt right so I think this is very interesting in terms of its implications in the future it's amazing to see so many different texts coming together here and I think it to me there's two main there's the NFC chip which as you

said enables you to as a brand to recognize your customer for basically wearing your brand somewhere where you want to activate with them or engage with them whether it be in the store whether it be at an event you know you can sort of see this down the road that there will be more I can imagine like basically like a a little NFC unit that you walk up to and you scan your shirt or you scan your shoe and you know maybe you get some sort of reward or some sort of loyalty point is there something for that right and then there's also the shoe itself which tracks steps which gives arguably more true data on your

steps and also gives data to Nike which is very valuable like right now if any brand wants to collect data on us basically a day-to-day basis they have to build an app and go through an app that's like the only way they can get that data especially if it's like Fitness related but really like any any data that they want from us a regular basis like our phone is the only piece of Hardware that we have with us at all times whereas now what we're saying is maybe there's more Hardware in the rest of this stuff that we have on our body which gives more true data and we all know that data is so valuable to businesses I can only imagine what Nike and I like to say Nike versus artifact only because the potential feels way

bigger right now obviously they're just experimenting right now with artifact but you can bet that if this works and Nike goes oh my gosh look at all the data that artifact got about how many steps these people take when they were oh they only wear their shoes you know in the evening or oh they most people wear them running like okay like that is such valuable or people don't wear them at all they're just sitting being docked because we've made too much of a limited Supply and so okay we have more potential like all this data is so so relevant to Brands and then of course we have blockchain which is the piece that allows this NFC chip to be verified attached to tpen's Identity and then

maybe reward him with something on chain or to track all of this stuff on chain in a mutable way it is so exciting to see and it's so early right like that's the amazing thing is like I feel people don't even necessarily realize you know if a year ago you had said to me there'd be an NFC chip in my t-shirt I'd be like what are you talking TPM like why would that be there but now it feels more and more like we're headed in that direction I think one thing is NFC chips are very low cost and so people need to recognize that like I think it's very quick to be like why why would a manufacturer pay to put a chip in a t-shirt well they're actually incredibly low cost and two is they we're now at a point where we can do because of blockchain we can do more

with an NFC chip than we could you know in the past most stuff in La agree with all the points and implications and I think you put it very well and we're talking about you mentioned this earlier lower Supply collections or items for this specific collection less than 6 000 I think when you which is exactly this is nothing right yeah for anyone that is unfamiliar with the sneaker space less than six thousand or anything less than five digits even sometimes less than six depending on what the thing is is very very low like very low I already mentioned to you there are people I would be one of these people again only ordered one and set out open this I'm opening it it's not

too bad like why didn't they say it yeah it's not uh the term is called Dead stock so it's not dead stock anymore it's warm this has lost a lot of value just like driving the car off the lot or you know a diamond that is now you know has been purchased but it's okay for the culture and also I I should be using this but it's very low there will only be so much in circulation I would say I think you can purchase these on eBay you can purchase this really anywhere else yeah because keep in mind these are people can people buy these like how you can still purchase the nft right but it's been forged so it's not like is there any that haven't been forged maybe or so unfortunate yeah so there's also unforged ones but that period has passed oh so if you bought it on forged one it

doesn't even matter you can't it doesn't matter right so this is actually true with the artifact Air Force Ones like you still get the digital collectible and there's probably interoperability in the future where you could still wear these you know around the metaverse or whatever the use case or maybe a future integrated video game or something but like that's that and there is the connection between physical physical and digital but you could also just purchase physical not caring about anything with like NFC chip or whatever let's say I'm just someone that really likes a sneaker and also that which knows it's really rare and just don't care about any Tech you could do that too right so you sort of get this sort of combination permutation aspect where like you might initially come for the digital and realize like hey I really like the physical too and you like both or you

just like one or you came for the physical you don't care about the digital but maybe a year later you finally maybe things are more mentioned and you're like wait this pair of sneakers I remember hearing about it but like I didn't care for it and I was just like I could enter this whole cool interesting ecosystem that that is artifact and like participate because I have the physical to a degree right but then you don't have the digital you might need a Chase for that or maybe there's some bonus that you get who knows there's a lot of different ways to sort of onboard different folks you know into this world and ecosystem regardless of their preference right and it's okay if it's just one or both of the other you came first for one or the other which is notable the last thing I want

to say is expanding Beyond Nike and artifact and we already see this in bits and spurts especially if it comes more into luxury is authentication right you're talking about the price of NFC chip being very low and especially relative to let's say a five thousand dollar handbag as an example that's nothing to just know that and to even prove in the right situation that this is Louis Vuitton this Chanel handbag is the real deal and like I could verify it to you or to a friend who's cracking a joke at me on the spot and they're like oh whoa what's this it's just like yup it's real man and again it's jarring it's a little different but it will get to a degree where we are in a world right where you know

the term misinformation is used a lot and there is a lot right but how do you verify how do you authenticate and at least with physical Goods there is this future that is pretty clear that you can more or less black and white be like this is real this is provably and verifiably authentic and I think that is a very very powerful concept yeah incredibly powerful Breitling The Watch Company probably a year ago that I saw this but they made a deck where they talked about how they were offering they put an NFC chip in every one of their watches and they offered you to be able to set up a wallet and join their clubs they're starting a loyalty program but the main thing was you could

authenticate the watch and they had like over 200 000 people who had purchased watches in this like three month period uh who had authenticated it on chain so that is already happening in big ways okay before we wrap here I just want to get final thoughts t-pan integrationwith Nike dot swoosh where does this go great question unclear it could be a deeper actual brand integration Micah tells me it's more and historically there's been various signs of this artifact is more almost like the test and iterate arm of Nike so for example artifact came first so a lot of interesting stuff then Nike launched the

Dos swoosh platform they launched nfts they don't call it that they just call it you know virtual sneakers things like that I think the integration will be more indirect at first as I think in the future it could be direct but it's more watching and learning what's going on the data that they gather to your point and sort of just interest from audiences and then applying some of those learnings maybe in a slightly diluted fashion maybe just one to one we'll see but then applying that to Their audience with eventual integration is sort of Micah and my take just because different audiences different propensity to be open to these types of things but do not think there is like inconsistent communication or like they don't talk to

each other they work very closely together it's been publicly stated that not like in a like the traditional way or like the way I think about from like a business standpoint or external party but artifact advice is Nike like more an internal advisory fashion right not like hey I get paid but they're owned by Nike and Nike has large implications for the direction that the larger brand and Company and even space is going so they work very closely together and I think that it's difficult to speculate exactly what will happen but I think it is very clear that Nike sees that the future is on chain they see that the future is to adapt to using these new forms of tech and they bought artifact for a billion dollars purely to go test that and

figure that out and look here we are and it's happening and it's working so really exciting to see t-pan thanks for joining the show again and for showing us your new kicks next time we see each other in person I hope you're wearing them so you can show me the auto Lacy and all that cool stuff my pleasure we'll see if it's the right situation but uh I'll get to wearing them outside first in general and then we'll see he's not even right because you don't want to just open that up over the weekend so yeah buddy gotta gotta do that well when's the first Quest comes out then maybe you'll wear them because then you know you can go on the quest awesome well thanks so much for listening in everybody don't think you can go out and

buy your own artifact shoes quite yet although as tpan said you could go buy an unforged version if you want to do that make sure you let us know drop us a note in the show notes because we'd love to hear your experience keep Dan until next time wish you all the best we'll talk to you again soon chat soon thank you cheers everybody thank you for listening to web3 Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for a free newsletter where we provide timely and relevant web3 insights so you can confidently build and invest in web 3.

make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and Webster are risky and you should never invest more than you're willing to lose they your friends and see you in the next one