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In contrast to Nike, Adidas embarked on a community-first approach that focused on partnerships with newer metaverse platforms and on the creation of NFTs. Adidas

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In contrast to Nike, Adidas embarked on a community-first approach that focused on partnerships with newer metaverse platforms and on the creation of NFTs. Adidas released a series of NFTs that gave owners access to special physical goods, such as hoodies, and to future digital experiences. Adidas collaborated with three partners: the Bored Ape Yacht Club, a highly sought- after NFT collection; Punks Comic; and GMoney, a pseudonymous crypto enthusiast. A total of 30,000 units of the NFTs, priced at about 0.2 ETH (about $800) on Ethereum, were mined on December 17, 2021. They sold out just a few hours after their release, netting almost $22 million in one day. Adidas also entered a partnership with the Bored Ape Yacht Club for a metaverse play by purchasing a Bored Ape NFT avatar. Adidas shared its look on Twitter, showing a Bored Ape avatar wearing Adidas-themed apparel. It celebrated the alliance with a trailer and called it "the time to enter limitless possibilities." The newer metaverse platforms were decentralized environments where users called the shots, in contrast to older platforms, such as Roblox and Fortnite, with which Nike had partnered (see Exhibit 5 for a network comparison between Web2 and Web3). The older platforms featured centralized control, so brands could carefully curate the experiences they wanted to create. For instance, Roblox's proprietary platform was a "walled garden" because creators could only use tools offered by Roblox to create content and make money. Web3 platforms such as Decentraland and The Sandbox were decentralized. They were owned by users, so brands had to collaborate closely with communities of passionate creators and virtual landowners to engage with their audiences. Some experts felt that Adidas's approach-of partnering with newer, decentralized platforms- was bolder than Nike's. Adidas dove in by purchasing a Bored Apes Yacht Club NFT#8774 in September 2021. This collection of NFTs was one of the best known with celebrities; well- heeled owners included basketball star Steph Curry and talk-show host Jimmy Fallon. Adidas also purchased land in The Sandbox to create Adiverse to rival Nikeland on Roblox. Players could use the NFTs as virtual tokens to purchase virtual merchandise and dress up their avatars on The Sandbox. Adidas's bolder approach was also riskier because it involved investing in virtual land in the metaverse, creating a collection of expensive NFTs, and building a community over which it could not exercise centralized control

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