James Cirrone

Nike NFT marketplace .Swoosh will be incorporated into future EA Sports video games.&nbsp;



While neither EA nor Nike has released information about which titles will include Nike virtual athletic attire, EA has a suite of sports-related games, most famously, FIFA.



Nike said it will give more specifics on how its NFTs — which it only refers to as “virtual creations” — will be included into EA’s games “in the coming months,” according to a <a href="https://about.nike.com/en/newsroom/releases/nike-virtual-studios-dot-swoosh-ea-sports-partnership">statement</a> from Nike.



EA is Nike’s latest partner in its bid to incorporate Web3 into its business. Ron Faris, a vice president of Nike Virtual Studios, said in a statement that the partnership will unlock “new experiences for our .SWOOSH community and the massive EA SPORTS fan base.&#8221;



The shoe manufacturing giant <a href="https://blockworks.co/news/web3-watch-yuga-labs-adds-to-portfolio-nike-creates-nft-marketplace">launched Polygon-enabled .Swoosh in November 2022</a>, and Blockworks previously reported that users can trade NFTs on the platform as well as gain access to tangible products and events.&nbsp;



At launch, Blockworks also reported that .Swoosh was already working with top athletes including Cristiano Ronaldo, Lebron James, Michael Jordan and Serena Williams.&nbsp;



On May 15, .Swoosh, which is still in beta, released its first NFT sneaker collection called Our Force 1 — a reference to the brand’s popular Air Force 1 sneakers — and over 97,000 have been sold to nearly 53,000 addresses, according to <a href="https://polygonscan.com/token/0x851d5fa26636df46b6196879582324c311556b46">Polygonscan</a>.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">And that does it for the launch of the OF1 Collection. 🎉 Thank you to all of the 50K+ .SWOOSH members who participated. We&#39;ll be back tomorrow with a recap of all things OF1. Oh, and we have a special announcement coming at 8am PDT. 👀 Until tomorrow .SWOOSH fam 🫡&mdash; .SWOOSH (@dotSWOOSH) <a href="https://twitter.com/dotSWOOSH/status/1664165129657913351?ref_src=twsrc%5Etfw">June 1, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The Our Force 1 collection is limited to those with .Swoosh IDs, which are necessary to access the NFT platform. Nike’s general access sale opened on May 24 and closed in the early morning hours of Thursday, June 1.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Nike NFTs Will Be Incorporated Into EA Sports Games

Ornella Hernandez

The crypto industry, especially the centralized finance (CeFi) sector, has been <a href="https://blockworks.co/news/genesis-halts-lending" target="_blank" rel="noreferrer noopener">spun into chaos</a> following the revelation of FTX’s major market fraud. The bankrupt crypto exchange’s former CEO <a href="https://blockworks.co/news/what-do-tom-brady-steph-curry-and-naomi-osaka-have-in-common-an-ftx-lawsuit" target="_blank" rel="noreferrer noopener">Sam Bankman-Fried is now being sued for $11 billion</a> in damages.



An NFT-related casualty is the collection of Coachella NFTs stuck on the NFT marketplace without the option to withdraw or transfer them. The lifetime passes that generated $1.5 million in sales are now stuck on the custodial platform, <a href="https://twitter.com/_Kaspar__/status/1592542238361669632?s=20&amp;t=Qi1RMApzAjDzYC7C6pdGxw" target="_blank" rel="noreferrer noopener">currently disabled</a>.&nbsp;



Nevertheless, Web3 companies keep on trudging and building through this crypto winter. And a few winners of the week emerge, mainly Yuga Labs, Nike and Azuki.



Here are some notable stories that caught the eyes of the Web3 Watch.&nbsp;



Yuga Labs has been busy



The parent company behind Bored Ape Yacht Club (BAYC) <a href="https://news.yuga.com/yuga-labs-acquires-wenew-10ktf-figge" target="_blank" rel="noreferrer noopener">announced</a> on Monday its acquisition of WENEW Labs, an NFT venture co-founded by Mike “Beeple” Winkelmann. This new addition to the Yuga Labs family included the NFT collection 10KTF — a digital fashion shop in a “New Tokyo” universe.&nbsp;



Beeple has also joined the Yuga team as an advisor on the project, and Michael Figge, former WENEW CEO, is now Yuga’s chief content officer.&nbsp;



10KTF joins BAYC, Mutant Ape Yacht Club (MAYC), Bored Ape Kennel Club, Otherdeed for Otherside, CryptoPunks and Meebits collections.&nbsp;



The 10KTF shop is run by artisan Wagmi-san and offers metaverse-ready accessories and digital wearables from the top Ethereum NFT collections, from BAYC to Moonbirds and Nouns. The store has also collaborated on special merch with brands such as Louis Vuitton, Playboy, Wimbledon, Gucci, Puma and others.&nbsp;



Yuga’s metaverse, Otherside, hinted at a possible collaboration with 10KTF, <a href="https://twitter.com/OthersideMeta/status/1592165612721426433?s=20&amp;t=VShuBxK3wC9xoIkYSgVTEw" target="_blank" rel="noreferrer noopener">tweeting</a> “Welcome to the Otherside, Wagmi-san.” Following the Monday announcements, four Yuga Labs NFTs still top the volume charts on OpenSea at the time of writing — BAYC, MAYC, Otherdeed for Otherside and CryptoPunks.



While BAYC has seen the most trading volume in ETH over the past seven days on OpenSea, its floor price briefly fell by more than 20% this week. After hovering around 60 ETH for the past couple of weeks, the floor price fell to 48 ETH, the lowest it has been since December 2021.&nbsp;



This allowed CryptoPunks to flip BAYC’s floor price. The current lowest priced punk available is for 66.79 ETH ($79,537), while the cheapest Bored Ape is going for 62.05 ETH ($73,559). CryptoPunks’ floor price has remained neutral to market conditions since early 2022 and seemingly unaffected in the aftermath of FTX.



Bored Ape NFTs, on the other hand, may have been affected by a rush of buyers on peer-to-peer lending platform BenDAO. It allows users to borrow up to 40% of an NFT’s floor price, and if the loan repayment fails, then the NFT will go on sale in a 48-hour auction.



Concerns over buying interest on BenDAO may have “pummeled the floor,” as punk9059 <a href="https://twitter.com/punk9059/status/1592670164453306368?s=20&amp;t=jTX6iDiBqFrzxhDby18rXA" target="_blank" rel="noreferrer noopener">tweeted</a>, and led to higher than average daily trades this week.&nbsp;&nbsp;



Nike’s new NFT world



Nike, who already owns the popular RTFKT NFT project, launched an NFT marketplace called .Swoosh — yes, with the dot — built on Polygon. The sports apparel company <a href="https://blog.swoosh.nike/what-just-happened-74f854d6c00f" target="_blank" rel="noreferrer noopener">described</a> it as “our own special place on the internet where you can collect and help shape Nike virtual creations.”



Users can trade virtual apparel, sneakers, accessories and other collectibles to dress up an avatar and also unlock access to in-real-life products and events. Benefits could range from preordering a physical item, chatting with the shoe designers or even athletes that Nike sponsors.



The first collection will drop closer to the New Year, and the idea is for the community to be involved in future drops. It will host creator challenges where users can earn a royalty from the virtual products co-created with Nike.&nbsp;



Users will be able to create their own .Swoosh IDs as free NFTs minted on Polygon, which are necessary in order to access the platform. It’s like Nike&#8217;s proprietary version of the open Ethereum Name Service (ENS).



Registrations for .Swoosh ID&#8217;s start on Nov. 18, and once a user claims their ID they will be given a BitGo wallet.



Nike’s Web3 plans include an educational aspect. The company plans to go on a tour across the US, starting in Austin, TX, hosting tutorials and workshops on how their products work.



The brand works with some of the top athletes and celebrities in the world, such as Cristiano Ronaldo, Lebron James, Michael Jordan and Serena Williams to name a few. This means that any potential .Swoosh drop from one of them could likely help to onboard millions of new users into the space — similar to how Reddit’s NFT market onboarded nearly 3 million non-native users in only a few months due to its easy-to-understand language.&nbsp;



Nike also hinted at the possibility of video games and immersive experiences that may be coming soon. Nike <a href="https://blockworks.co/news/web3-watch-crypto-gaming-console-in-the-works-nikes-metaverse-plans" target="_blank" rel="noreferrer noopener">filed a trademark application</a> for “video game integration” of NFTs in June with the United States Patent and Trademark Office.



Azuki to Race in F1



The Formula 1 season finale is coming up in Abu Dhabi this weekend, and Azuki holders and fans may be in for a big surprise.&nbsp;



Oracle Red Bull Racing, its main crypto sponsor Bybit and Azuki creator Chiru Labs have emblazoned Lei the Lightning Azuki #8494 on the side of a race car. 


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="1024" height="683" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg" alt="" class="wp-image-39556" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=392 392w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=329 329w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/11/Bybit-Azuki-NFT-1024x683.jpg?w=50 50w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Lei the Lightning Azuki #8494 on Red Bull Racing&#8217;s car | Source: ByBit</figcaption></figure></div>


Racers Max Verstappen and Sergio Perez will get to ride in the NFT-adorned car during the Grand Prix. Red Bull Racing and Verstappen dominated the F1 season this year.



Christian Horner, CEO of Oracle Red Bull Racing, stated that being “the first to put a blue-chip NFT on a Formula One car is a tremendous feat.”



F1 fans may get a chance to own a limited-edition version of the Lei the Lightning Azuki #8494 on a first come, first served basis to be minted on Tezos for free.&nbsp;



Azuki founder Zagabond said that “Lei the Lightning Azuki reflects the passion, precision, and raw power” and that F1 is now part of Lei’s story.&nbsp;



Along with Tezos as a sponsor, the cryptocurrency exchange Bybit is a principal team partner of Oracle Red Bull Racing since February 2022. The Formula 1 industry has been a big proponent of the cryptocurrency space, however, reputation means everything.&nbsp;



Another F1 team, Mercedes-AMG Petronas, decided to terminate the sponsorship agreement it had with FTX since September 2021 following the bankruptcy saga.



Web3 gaming awards



A new Web3 gaming awards event hosted by Polkastarter Gaming is set to round out the year next month. The Gam3 Awards, as it’s called, <a href="https://polkastarter.gg/news/gam3-awards-announcement/" target="_blank" rel="noreferrer noopener">intends</a> to recognize 2022’s best Web3-based games.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Awarding the best gam3s 🎮 16 categories. 30+ industry leaders. $300k prizes. 📅 15 December 2022. Save the date. Voting starts soon ⬇️<a href="https://t.co/p0niqHYzHw">https://t.co/p0niqHYzHw</a> <a href="https://t.co/8n0ArqZXS1">pic.twitter.com/8n0ArqZXS1</a>&mdash; GAM3 AWARDS | 15th Dec 🏆 (@PolkastarterGG) <a href="https://twitter.com/PolkastarterGG/status/1592160570794704899?ref_src=twsrc%5Etfw">November 14, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



A 30-person jury, along with the crypto gaming community, will judge over 100 games nominated across 16 different categories to vote on the best ones.



Some of the categories include game of the year, best graphics, best mobile game, best shooter game and best multiplayer game. There’s even a category for most anticipated game because video games take a long time to build and creating anticipation for one is important for its success.&nbsp;



The event plans to broadcast across Polkastarter Gaming’s Twitch, YouTube and Twitter channels. Winners of the first GAM3 Awards can earn a share of $300,000 worth of prizes from sponsors such as Immutable X, Blockchain Game Alliance, Machinations, Naavik and Ultra.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Web3 Watch: Yuga Labs Adds to Portfolio, Nike Creates NFT Marketplace

<div id="highlights-block_62c6e8eed1f51" class="highlights">
 <ul>
 <li>Polygon and Ethereum-based NFTs were tested on some selected users on Facebook at the start of this month</li>
 <li>Otherdeed was the most-traded project on OpenSea the past few days, which had 988 ETH in sales, an uptick most likely due to the anticipation of the upcoming Otherdeed metaverse</li>
 </ul>
 
</div>



<h3 class="wp-block-heading">Web3 gaming console is met with mixed reviews</h3>



Web3 company Polium is attempting to build a gaming console that will support multiple blockchains and NFTs. The company <a href="https://medium.com/@Polium_/polium-one-the-worlds-first-multi-chain-gaming-console-5052a44594c8" target="_blank" rel="noreferrer noopener">seeks</a> to “bring mass adoption into the Web3 space” to entice traditional gamers away from strictly playing on their PCs.&nbsp;



Heralded “Polium One,” the console will run games built on the ImmutableX, Ethereum, Solana, Polygon, BNB Chain, Harmony, EOS and WAX blockchains. A multichain wallet for trading, swapping and staking cryptocurrency will be available, according to press materials.



Its estimated release date is set for the third quarter of 2024, but the device is still a work in progress. Many Twitter users have been quick to criticize the project.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">We are introducing the Polium One, A multi-chain console for Web 3 Gaming. <a href="https://twitter.com/hashtag/Web3OnConsole?src=hash&amp;ref_src=twsrc%5Etfw">#Web3OnConsole</a> <a href="https://t.co/tkRaP2O13A">pic.twitter.com/tkRaP2O13A</a>&mdash; Polium (@Polium__) <a href="https://twitter.com/Polium__/status/1543288314433867777?ref_src=twsrc%5Etfw">July 2, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



After Polium’s logo was called out for resembling the Nintendo GameCube logo, the company <a href="https://twitter.com/Polium__/status/1543939765644443651?s=20&amp;t=VeRSMP4t4oEH7DK92_n6AA" target="_blank" rel="noreferrer noopener">denied</a> the likeness via Twitter and stated a new original logo is in the works.



The intended specifications for the console include 4K Ultra HD resolution at 120 frames per second and a fingerprint scanner on the controller that was originally called Touch ID — until Twitter users pointed out the term is an Apple trademark.



Polium aims to have a functional prototype in “a few months” that is “built by the community.”&nbsp;



<h3 class="wp-block-heading">RTFKT provides new utility to Clone X holders</h3>



The Nike-owned RTFKT NFT (non-fungible token) collection has <a href="https://rtfktstudios.medium.com/a-new-era-begins-the-start-of-the-avatar-economy-91f644be33be" target="_blank" rel="noreferrer noopener">marked</a> the beginning of a “new era” by granting full commercial rights to Clone X NFT holders. The company said owners will be able to use their Clones to mint fan art NFTs, make merch or music, and create their own businesses.



RTFKT is providing community members with the necessary files of their Clones to render 3D models and animations on software such as Maya and Blender.&nbsp;



The company envisions an ecosystem where a new generation of creators can collaborate with 3D artists, become virtual YouTubers or design their own wearables.&nbsp;



“The era of PFP is over, welcome to the Avatar Economy,” RTFKT stated on Medium.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">A new Era begins 3D Files 🌐 Full Commercial Rights 👩‍⚖️ It’s time to CREATE 🧵<a href="https://twitter.com/hashtag/clonesunlocked?src=hash&amp;ref_src=twsrc%5Etfw">#clonesunlocked</a> 🔓 <a href="https://t.co/fYqx6Sbg23">pic.twitter.com/fYqx6Sbg23</a>&mdash; RTFKT (@RTFKT) <a href="https://twitter.com/RTFKT/status/1544035652848738304?ref_src=twsrc%5Etfw">July 4, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Additionally, Nike recently <a href="https://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&amp;Sect2=HITOFF&amp;p=1&amp;u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&amp;r=3&amp;f=G&amp;l=50&amp;co1=AND&amp;d=PG01&amp;s1=nike&amp;OS=nike&amp;RS=nike" target="_blank" rel="noreferrer noopener">filed</a> a patent with the United States Patent and Trademark Office (USPTO) on June 30 for “video game integration” of NFTs.



The filing states that Nike seeks to patent a method where a “virtual object,” such as a “shoe, article of apparel, headgear, avatar or pet” will be used in digital collectible games from basketball and soccer. Users would be able to unlock NFT sneakers named &#8220;CryptoKicks&#8221; for their avatars, and physical twins of shoes and clothing will be available for retail sale.&nbsp;



The application cites Nike’s main motivations as a need to “more directly influence and/or control” the exclusivity and supply of digital objects in the virtual market as a way of tackling counterfeit footwear and imitation goods. Additionally, the sportswear giant sees creating video games as an opportunity to further physical brand engagement by influencing users in the digital realm.&nbsp;



<h3 class="wp-block-heading">Phones with built-in crypto wallets are the new trend</h3>



First, Solana Labs <a href="https://cms.blockworks.co/solana-branches-out-to-hardware-development-with-web3-mobile-phone/" target="_blank" rel="noreferrer noopener">announced</a> its plan to build a Web3 Android mobile phone, Saga, to easily transact with cryptocurrency. Now, Ethereum scaling solution Polygon has partnered with two other phone makers to further Web3 access for mobile users.



HTC is <a href="https://twitter.com/htc/status/1541678095870164995?s=20&amp;t=64g3nKcSqoivCm-FHZm8Ew" target="_blank" rel="noreferrer noopener">building</a> the HTC Desire 22 phone so that users can connect with its Vive Flow virtual reality glasses and stream content from the phone’s screen to the wearable’s display. Users will be able to manage their tokens and NFTs on Ethereum and Polygon via the Vive Wallet and the Vive Marketplace. The apps will offer “rich metaverse experiences without a VR headset.”



Polygon has teamed up with phone company Nothing to integrate its tech into the Nothing Phone (1) launching on July 12. The smartphone will not officially be released in North America but will work in the region.



Smartphone users will have access to apps and games on the Polygon platform, as well as its payments features and its proof-based identification solution, Polygon ID. Those who pre-ordered the Nothing Phone (1) became part of an NFT membership club and could receive Nothing’s Black Dot NFTs, which provide early access to certain products, events and benefits.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Nothing Series #3. We take a deeper look at Phone (1). See what it takes to build it from the inside out. And to get it ready for the launch. <a href="https://t.co/VxTHXn1XtJ">https://t.co/VxTHXn1XtJ</a> <a href="https://t.co/CA3fdZBovR">pic.twitter.com/CA3fdZBovR</a>&mdash; Nothing (@nothing) <a href="https://twitter.com/nothing/status/1544668542930505729?ref_src=twsrc%5Etfw">July 6, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">Latest Funding News</h3>



<ol class="wp-block-list"><li>Zigazoo, a social network for kids built on the Flow blockchain, recently <a href="https://fortune.com/2022/06/28/web3-nft-company-zigazoo-raises-17-million-series-a-funding/" target="_blank" rel="noreferrer noopener">announced</a> a $17 million Series A funding round. Liberty City Ventures led the raise, with participation from venture capital firm Causeway, the NBA, Dapper Labs, OneFootball, Medici VC, Animoca Brands, Lightspeed Venture Partners, Core Ventures, Spartan Group and TikTok stars Charli and Dixie D’Amelio. Zigazoo’s mission is to provide a “safe and positive online community” for children by helping them navigate the world of Web3, NFTs and the metaverse. Capital will be spent on the expansion of Web3 offerings such as NFT drops, increasing the token’s in-app utility, and building an NFT creator studio.</li><li>Gaming-focused VC firm Konvoy Ventures has <a href="https://cms.blockworks.co/konvoy-ventures-launches-150m-fund-to-back-web3-gaming-firms/" target="_blank" rel="noreferrer noopener">raised a $150 million fund</a> to support its portfolio companies during the market downturn and back other gaming startups. The company plans to spend 20% to 30% of that money on blockchain-based games. The firm has previously backed Sky Mavis, the developer of Axie Infinity, as well as the Genopets NFT game and the Ready Player Me avatar platform.</li><li>Bonfire Union, the investment arm of Web3 protocol Mask Network, <a href="https://techcrunch.com/2022/07/06/bonfire-union-mask-network-maiden-fund/" target="_blank" rel="noreferrer noopener">announced</a> that it has raised a $42 million fund with support from Binance, Alameda Research, Animoca Brands, Digital Currency Group, Arweave, HashKey Group and others. Mask Network is a Binance-backed startup that enables users to send cryptocurrencies and encrypted messages through platforms such as Twitter. The firm plans to invest in the “social ecosystem” of Web3, inspired by a fellow Chinese company Tencent, creator of the WeChat app.</li></ol>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Web3 Watch: Crypto Gaming Console in the Works, Nike’s Metaverse Plans

Morgan Chittum

<div id="highlights-block_622262e4a99e6" class="highlights">
 <ul>
 <li>“This signals that brands are paying attention [to the metaverse,] meaning they are staking their claim similar to how people sit on domain names,” Jenna Pilgrim, a blockchain startup exec, told Blockworks</li>
 <li>CVS mentioned NFTs and blockchain technology in its application</li>
 </ul>
 
</div>



CVS filed a <a href="https://tsdr.uspto.gov/documentviewer?caseId=sn97287237&amp;docId=APP20220303081509#amp%3Bpage=1&amp;docIndex=1&amp;page=1" target="_blank" rel="noreferrer noopener">trademark application</a> to sell “downloadable virtual goods” in the metaverse, looking to establish itself as the first pharmacy in the nascent virtual space. 



The health services company cited prescription drugs, beauty and personal care products in its application, along with “crypto-collectibles” such as NFTs.



The application, which was filed under the entertainment and amusement category on Feb. 28, was not made public until Friday.



Noah Gaynor, co-founder of NFT (non-fungible token) real-estate startup Parcel, told Blockworks that the application signals that more companies are “looking to plant their flag in the virtual ground” of the metaverse.



“I&#8217;d say it&#8217;s further confirmation that all consumer-facing brands, no matter the industry, are viewing the metaverse as the new frontier in reaching customers — through digital goods and services — and are therefore devising a metaverse strategy,” Gaynor said.



CVS joins the likes of big-name retailers <a href="https://cms.blockworks.co/nike-files-to-trademark-virtual-goods-hiring-metaverse-designers/" target="_blank" rel="noreferrer noopener">Nike</a> and Walmart in filing for metaverse-related trademarks. The sneaker company filed seven requests for <a href="https://cms.blockworks.co/nike-files-to-trademark-virtual-goods-hiring-metaverse-designers/" target="_blank" rel="noreferrer noopener">patents and trademarks</a> on virtual goods last year — including clothing, sports bags, art and accessories.



Jenna Pilgrim, CEO of blockchain startup Rite Network, told Blockworks that the influx of applications is a “positive signal to the market.”



“This [shows] that brands are paying attention, meaning they are staking their claim similar to how people sit on domain names. This strikes me as a form of legitimacy for metaverse applications,” Pilgrim said.&nbsp;



“Obviously, these applications have much farther to go for the protection of real assets that they would build in the metaverse, but it’s a cute first step.”



&nbsp;CVS did not immediately respond to Blockworks’ request for comment.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

CVS Files for NFT-related Trademarks in the Metaverse

<div id="highlights-block_61f41353732cf" class="highlights">
 <ul>
 <li>Verizon previously partnered with smart glasses company Vuzix to deliver a “first-of-its-kind” augmented reality experience for gaming</li>
 <li>After Facebook rebranded to Meta, mentions of the metaverse in third-quarter earnings calls spiked 349%, according to Bloomberg</li>
 </ul>
 
</div>



Count Verizon among the growing number of multi-billion dollar companies testing the metaverse waters.



Verizon posted on LinkedIn three <a href="https://www.linkedin.com/jobs/view/2886416372" target="_blank" rel="noreferrer noopener">content partnerships manager roles </a>Jan. 21, in search of a&nbsp; candidate who can lead “partnerships and initiatives that relate to 5G, gaming, VR, AR, NFTs, Web 3, metaverse content and other new immersive content formats and applications.”



The telecommunications giant joins the likes of Nike and Disney’s Hulu in looking to fill suddenly urgent positions in the nascent space as hiring competition for Web3 professionals heats up. Seemingly everyone is paying attention. After Facebook rebranded to Meta, mentions of the metaverse in third-quarter earnings calls spiked 349% and over 1,100% year-on-year, according to a <a href="https://www.coinbase.com/prime/2021-year-in-review?utm_source=twitter&amp;utm_medium=organic&amp;utm_campaign=in_i_m_w_m_awa_twi_soc_0_institutional-2021-year-review" target="_blank" rel="noreferrer noopener">Bloomberg analysis</a>



Verizon previously partnered with smart glasses company Vuzix to deliver a&nbsp; “first-of-its-kind” augmented reality experience for gaming.&nbsp;



“AR allows us to meet our consumers in a new metaverse, reimagining our worlds and how we engage on a deeper level,” Andrew McKechnie, chief creative officer at Verizon, told <a href="https://www.marketingdive.com/news/verizon-showcases-5g-with-metaverse-treasure-hunt/607746/">MarketingDive.</a>&nbsp;



Verizon did not immediately respond to Blockworks’ request for comment.&nbsp;



The hunt for scarce talent in the virtual world is prompting some to make hires without clearly defined roles or an understanding of where the metaverse fits into old-school companies with long-established business models, according to industry participants.&nbsp;



“I think like anything there are some elements of companies that like to be associated with the metaverse or the idea of the metaverse because it makes them look cutting edge and very advanced,” David Doung, Head of Institutional Research at Coinbase, told Blockworks. “But there is still a misunderstanding of what it represents. To be fair, with any new technology like this, I think that it&#8217;s hard to come to a consensus of what the definition of it actually is.”&nbsp;



In some cases, retailers have turned to acquiring crypto-native firms to get a leg-up.&nbsp;&nbsp;



Nike, for instance, in December <a href="https://news.nike.com/news/nike-acquires-rtfkt" target="_blank" rel="noreferrer noopener">acquired</a> NFT startup RTFKT. Meanwhile, the sports apparel giant is looking for a director of metaverse engineering, according to a Jan. 27<a href="https://www.linkedin.com/jobs/view/2883860198" target="_blank" rel="noreferrer noopener"> job posting</a>, who will lead expansion of the retailer’s “rapid end-to-end proof of concepts, prototypes, and production of metaverse software and device solutions.”



The role requires knowledge of blockchain ecosystems, cryptocurrencies, non-fungible tokens (NFTs), smart contracts, decentralized apps,&nbsp;decentralized autonomous organizations (DAOs), digital wallets and more.



Nike has posted four other metaverse-related job openings over the past week, including a senior 3D game designer, a principle innovation engineer for the metaverse, expert innovation program manager for blockchain and a virtual material designer.



Streaming service Hulu also signaled an interest in expanding into the metaverse with a Jan. 14 job posting.&nbsp;



The company may hire a brand culture marketing manager, whose role would include focusing on how the platform could “break through into other spaces outside of streaming [such as] NFTs, crypto [and the] metaverse,” to “target the streamers of tomorrow,” according to <a href="https://www.linkedin.com/jobs/view/2788396622" target="_blank" rel="noreferrer noopener">LinkedIn</a>.



Hulu did not immediately respond to Blockworks’ request for comment.



Morgan Stanley in November <a href="https://cms.blockworks.co/how-megabanks-goldman-sachs-morgan-stanley-are-talking-about-the-metaverse/" target="_blank" rel="noreferrer noopener">told investors</a> that the metaverse would be “the next big investment theme” and would become an $8 trillion market.



Other large brands have created metaverse-related job postings over the past month, including <a href="https://www.linkedin.com/jobs/view/2867373145" target="_blank" rel="noreferrer noopener">American Eagle</a> and <a href="https://careers.ulta.com/careers/jobs/171847?lang=en-us" target="_blank" rel="noreferrer noopener">UltaBeauty</a>.&nbsp;



“We&#8217;re still trying to come to grips with what [the metaverse] actually represents and what it needs,” Coinbase’s Duong said. “There is some element of that at play where some companies are mentioning it but I&#8217;m not fully confident what they&#8217;re doing could actually be considered metaverse-related or that they have actual plans associated with that. But I do have good faith that a lot of companies out there are working on it and that they&#8217;re focused on it to build it out.”



Jacquelyn Melinek contributed reporting. 



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

Verizon Joins Hulu, Nike in Metaverse Hiring Spree

Ben Strack

<div id="highlights-block_61ccbbe3dac56" class="highlights">
 <ul>
 <li>Large financial companies will continue looking to buy crypto data providers, stablecoin issuers and digital asset firms focused on payments, an industry watcher says</li>
 <li>Among the largest deals of 2021 — excluding those involving special purpose acquisition companies (SPACs) — was Galaxy Digital’s $1.2 billion purchase of BitGo</li>
 </ul>
 
</div>



Mergers and acquisitions within the crypto sphere are set to heat up in 2022, industry watchers predict, after a year during which traditional financial companies executed buys in the space.



Trends that emerged in 2021 will continue into next year, Ryan McCulloch, an investment banking associate at M&amp;A advisory firm <a href="https://www.architectpartners.com" target="_blank" rel="noreferrer noopener">Architect Partners</a>, said in an interview with Blockworks.&nbsp;



He highlighted <a href="https://www.paypal.com/us/home" target="_blank" rel="noreferrer noopener">PayPal</a>’s buy of Curv, a provider of cloud-based infrastructure for digital asset security. The deal, announced in March, was worth $200 million, according to Architect Partners data.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“The acquisition of digital payment wallets and secure payment wallets is going to be huge, and there’s a continued need for that from the larger institutions,” McCulloch said. “I think most of them are making the decision right now that it’s growing so quickly they need to buy versus build.”</blockquote>



Donald Putnam, a managing partner at investment firm Grail Partners, said that he expects clarity about crypto from regulators, including the US Securities and Exchange Commission (SEC), during the first quarter of 2022, followed by “definitive action” in the second half of the year.&nbsp;



“This paves the way for the next trend to catch fire: the beginning of mainstream infrastructure providers — the global banks and exchanges — to begin buying technology and market share by acquiring the innovators,” Putnam told Blockworks. “That second trend will favor the exchanges and disenfranchise the banks, because of the profitability and [price-to-earnings] ratios of exchanges versus banks.”



<h3 class="wp-block-heading">Accelerating M&amp;A&nbsp;</h3>



McCulloch noted that “bridge transactions” — deals between more traditional companies and crypto firms — rapidly accelerated in 2021. Overall, M&amp;A deals involving at least one company in the crypto sector totaled 169, as of mid-December, he added, compared to 59 deals in 2020.



Nike earlier this month <a href="https://news.nike.com/news/nike-acquires-rtfkt" target="_blank" rel="noreferrer noopener">announced its buy</a> of RTFKT, a company that creates virtual products and experiences, including NFTs.&nbsp;



Trading platform Robinhood revealed a day later on Dec. 14 that it would acquire Cove Markets, which it described <a href="https://blog.robinhood.com/news/2021/12/14/robinhood-crypto-welcomes-cove-markets" target="_blank" rel="noreferrer noopener">in an announcement</a> as a cross-exchange trading platform that makes it easier for people to manage their crypto accounts.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“It’s guys like Nike acquiring NFT guys, and it’s Robinhood and huge traditional guys acquiring these crypto companies,” McCulloch said. “That’s really where the value is being created and what’s driving these crazy, crazy prices.”</blockquote>



Among the largest deals of the year — excluding those involving special purpose acquisition companies (SPACs) — was <a href="https://cms.blockworks.co/galaxy-digital-acquires-bitgo-for-1-2b/" target="_blank" rel="noreferrer noopener">Galaxy Digital’s $1.2 billion purchase of BitGo</a>. The purchase of the custodian was executed to establish the digital asset bank as “a one-stop-shop for institutions,” Galaxy CEO Mike Novogratz said in a statement at the time.



The other largest deals of the year, according to Architect Partners data, include <a href="https://cms.blockworks.co/polygon-acquires-mir-in-400m-deal-to-scale-ethereum-and-web3/" target="_blank" rel="noreferrer noopener">Polygon’s buy of Mir</a> ($628 million), <a href="https://ir.northerndata.de/news/adhoc/northern-data-acquires-bitcoin-miner-bitfield-n-v-under-an-up-to-eur-400-million-stock-for-stock-deal-and-issues-new-revenue-guidance-for-2021/" target="_blank" rel="noreferrer noopener">Northern Data’s acquisition of Bitfield</a> ($575 million) and Siam Commercial Bank’s <a href="https://www.scb.co.th/en/about-us/news/nov-2021/scbs-bitkub-online.html" target="_blank" rel="noreferrer noopener">purchase of Bitkub Capital Group Holdings</a> ($537 million).&nbsp;



Though SkyBridge Capital Founder Anthony Scaramucci <a href="https://cms.blockworks.co/are-tradfi-and-crypto-set-for-an-ma-explosion/">previously said</a> he expects that a big bank frustrated by the growth of decentralized finance to buy a crypto firm such as Coinbase, the crypto platform has buying plans of its own.&nbsp;



The firm <a href="https://blog.coinbase.com/coinbase-to-acquire-leading-blockchain-infrastructure-platform-bison-trails-f879654421d6" target="_blank" rel="noreferrer noopener">revealed in January</a> that it would acquire blockchain infrastructure Bison Trails. Emilie Choi, Coinbase’s president and chief operating officer, <a href="https://cms.blockworks.co/coinbase-president-crypto-on-pace-for-1-billion-users-within-5-years/" target="_blank" rel="noreferrer noopener">said earlier this month</a> that the company would look to acquire any “incredible companies” that it sees.



<h3 class="wp-block-heading">Other potential M&amp;A trends&nbsp;</h3>



Banks will also look at boosting their capabilities around stablecoins, McCulloch said.&nbsp;



The President’s Working Group on Financial Markets, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency released a <a href="https://home.treasury.gov/system/files/136/StableCoinReport_Nov1_508.pdf" target="_blank" rel="noreferrer noopener">report</a> in November about stablecoins and the need to regulate them.&nbsp;



It recommends that legislation should limit stablecoin issuance to entities that are insured depository institutions, including state and federal banks and savings associations.  



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We’re seeing that stablecoins are going to be partnering with banks or banks are going to be acquiring those stablecoin issuers to enable that,” McCulloch said. “We have a client in that ballpark and I can tell you every single bank is interested.”</blockquote>



Big banks such as Citibank, McCulloch added, produce $12 billion of revenue per year around payments, and such players will look to acquire stablecoin issuers to keep those businesses healthy.&nbsp;&nbsp;



<a href="https://cms.blockworks.co/citi-ceo-fraser-were-building-the-infrastructure-for-retail-real-time-payments/" target="_blank" rel="noreferrer noopener">Citigroup CEO Jane Fraser</a> told Yahoo Finance in October that digital assets would be part of the future of financial services and markets, noting that the company was working to connect clients to wallets and enable corporate clients to accept consumer payments.



Citi also appointed a head of digital assets in November for its institutional client group and <a href="https://cms.blockworks.co/citi-looking-to-fill-100-new-digital-asset-related-roles/" target="_blank" rel="noreferrer noopener">intends to fill up to 100 additional roles</a> to support its digital asset capabilities across the unit.



A Citi spokesperson declined to comment about the company’s potential M&amp;A focuses for 2022.&nbsp;



Traditional financial companies will look to boost their data capabilities in the crypto realm, McCulloch added.



Mastercard <a href="https://cms.blockworks.co/mastercard-to-acquire-crypto-intelligence-company-ciphertrace/" target="_blank" rel="noreferrer noopener">announced in September</a> that it would buy crypto intelligence company CipherTrace, which has provided “blockchain forensics” for about 150 of the largest banks, exchanges, financial institutions and regulators across more than 7,000 cryptocurrency entities.



The following month, Cboe Global Markets <a href="https://ir.cboe.com/news-and-events/2021/10-20-2021/cboe-agrees-acquire-erisx-entering-digital-asset-space-spot-derivatives-and-clearing-platform" target="_blank" rel="noreferrer noopener">agreed to buy ErisX</a>, allowing for its entry to the digital asset spot and derivatives markets, including clearing and settlement. The deal size was $400 million, Architect Partners data shows.&nbsp;



ErisX’s focus throughout development on robust regulatory compliance is a major driver of value to traditional financial players such as Cboe, McCulloch wrote in a research note at the time.



“Those two acquisitions really prove that these large multi-billion-dollar companies need to acquire this space,” McCulloch told Blockworks of the Mastercard and Cboe deals. “&#8230;It’s really interesting to see it play out.”



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.



<hr class="wp-block-separator"/>

What Could Crypto M&A Look Like in 2022?

<div id="highlights-block_61a906c6e648d" class="highlights">
 <ul>
 <li>Coinbase previously announced a partnership with Adidas</li>
 <li>Adidas purchased digital property in blockchain-based virtual gaming world The Sandbox</li>
 </ul>
 
</div>



Adidas <a href="https://twitter.com/adidasoriginals/status/1466443459951271939?s=20" target="_blank" rel="noreferrer noopener">revealed</a> its collaboration with popular non-fungible token (NFT) collection Bored Ape Yacht Club on Thursday, signaling another move from the company to venture into the metaverse.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Today we leap Into The Metaverse with <a href="https://twitter.com/BoredApeYC?ref_src=twsrc%5Etfw">@BoredApeYC</a>, <a href="https://twitter.com/gmoneyNFT?ref_src=twsrc%5Etfw">@gmoneyNFT</a> &amp; <a href="https://twitter.com/punkscomic?ref_src=twsrc%5Etfw">@punkscomic</a>. It’s time to enter a world of limitless possibilities.<a href="https://t.co/LmgtrRn20c">https://t.co/LmgtrRn20c</a> <a href="https://t.co/40kU8tayrS">pic.twitter.com/40kU8tayrS</a>&mdash; adidas Originals (@adidasoriginals) <a href="https://twitter.com/adidasoriginals/status/1466443459951271939?ref_src=twsrc%5Etfw">December 2, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



However, this is not the sportswear brand’s first foray into digital collectibles. Last week, the sneaker giant announced partnerships with <a href="https://twitter.com/adidasoriginals/status/1463571957249630223?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1463571957249630223%7Ctwgr%5E%7Ctwcon%5Es1_c10&amp;ref_url=https%3A%2F%2Fdecrypt.co%2F87087%2Fadidas-goes-full-metaverse-with-coinbase-partnership-and-the-sandbox-real-estate" target="_blank" rel="noreferrer noopener">Coinbase</a>.&nbsp;



Coinbase&#8217;s partnership with Adidas is part of the clothing company’s strategy to gain a foothold in the metaverse. “The Metaverse is currently one of the most exciting developments in digital, making it an interesting platform for Adidas,” a spokesman for Adidas recently told <a href="https://www.cityam.com/adidas-partners-with-coinbase-amid-metaverse-push/" target="_blank" rel="noreferrer noopener">CityAM.</a>



Two days prior, The Sandbox, a blockchain-based virtual gaming world, also <a href="https://twitter.com/TheSandboxGame/status/1462871109821419523?s=20" target="_blank" rel="noreferrer noopener">announced </a>that the popular shoe company has a plot of virtual land named after the brand on Nov. 22. However, it is unclear what the digital real estate will be used for or how much it is worth.



“Hey @adidasoriginals, impossible is nothing in the Metaverse. What if we invite all of the original thinkers and do-ers to design our future together?” The Sandbox said in a <a href="https://twitter.com/TheSandboxGame/status/1462871109821419523?s=20" target="_blank" rel="noreferrer noopener">tweet</a>.



The slew of Adidas news follows <a href="https://cms.blockworks.co/nike-files-to-trademark-virtual-goods-hiring-metaverse-designers/" target="_blank" rel="noreferrer noopener">Nike filing a trademark “virtual goods,”</a> according to an application <a href="https://tsdr.uspto.gov/documentviewer?caseId=sn97096366&amp;docId=APP20211030100704#docIndex=1&amp;page=1" target="_blank" rel="noreferrer noopener">filed</a> with the US Patent and Trademark Office. 



In other NFT news today, Defiance ETFs <a href="https://cms.blockworks.co/defiance-co-founder-nfts-will-be-bigger-than-the-internet/" target="_blank" rel="noreferrer noopener">launched</a> a Defiance Digital Revolution ETF (NFTZ) that will be traded on the New York Stock Exchange and offer investors exposure to NFTs, blockchains and cryptocurrency by investing in NFT marketplaces and issuers, as Blockworks reported.



Adidas AG stock is trading up 0.32% at $145.27 per share, as of press time.



<hr class="wp-block-separator"/>



Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.



<hr class="wp-block-separator"/>

Adidas is Betting Big on the Metaverse; Here’s How

Jacquelyn Melinek

<div id="highlights-block_618d55903aee5" class="highlights">
 <ul>
 <li>“You see literally everybody in marketing wanting to do something within NFTs.”</li>
 <li>“Growing entry of major players including Microsoft, Home Depot, Tesla, Whole Foods, Starbucks, and increasing appeal of tokenization through crypto currencies remain a key driver of growth,” according to a report by Brandessence Market Research and Consulting</li>
 </ul>
 
</div>



Non-fungible tokens (NFTs) have taken the crypto world by storm during 2021 and now every major brand and marketing specialist wants in, but this isn’t a bad thing — as it could help <a href="https://cms.blockworks.co/sam-bankman-fried-gaming-nfts-have-mainstream-potential/" target="_blank" rel="noreferrer noopener">drive mainstream adoption</a> of crypto, Yorke Rhodes, Microsoft’s director of digital transformation, blockchain and cloud supply chain, said in an interview with Blockworks. 



“You see literally everybody in marketing wanting to do something within NFTs,” he said.&nbsp;



Crypto assets have “pretty good” recognition by anybody who’s an asset investor, Rhodes said. “Crypto is an obvious foundation for digital assets and NFTs are digital assets,” he said.&nbsp;



On one side, he predicts that almost every major bank will become a custodian of digital assets in one form or another. While on the other side, Rhodes said NFTs are an interesting opportunity for brand marketers.



NFTs saw a growth of 328% in transactions during the first three quarters of 2021, according to a <a href="https://brandessenceresearch.com/requestMethodology/PostId/1735" target="_blank" rel="noreferrer noopener">report</a> by Brandessence Market Research and Consulting. “Growing entry of major players including Microsoft, Home Depot, Tesla, Whole Foods, Starbucks, and increasing appeal of tokenization through cryptocurrencies remain a key driver of growth,” the report said.



NFTs are most known for unique one-of-a-kind digital artworks, verified via blockchain technology, they can be anything ranging from a digital certified song to a screenshot of a tweet.&nbsp;



Earlier this month, Nike filed to trademark “virtual goods” for products ranging from footwear, clothing and sports bags to art, toys and accessories. These requests <a href="https://cms.blockworks.co/nike-files-to-trademark-virtual-goods-hiring-metaverse-designers/" target="_blank" rel="noreferrer noopener">hint at the possibility</a> that the company is planning to either sell its products as virtual goods or non-fungible tokens (NFTs) or is trying to protect its products from becoming NFTs. 



Separately, Visa made headlines in August for buying its first NFT — <a href="https://cms.blockworks.co/visa-steps-into-the-metaverse-with-first-nft-purchase/" target="_blank" rel="noreferrer noopener">CryptoPunk #7610</a>, for $150,000 in ether — and the company’s head of crypto <a href="https://cms.blockworks.co/visa-head-of-crypto-says-cryptopunk-wont-be-companys-only-nft/" target="_blank" rel="noreferrer noopener">told</a> Blockworks it wouldn’t be their only NFT purchase. 



The expectation is that NFTs will become integral to the burgeoning concept of the metaverse, which Microsoft’s CEO Satya Nadella <a href="https://cms.blockworks.co/microsoft-ceo-the-metaverse-will-bring-real-world-into-any-digital-space/" target="_blank" rel="noreferrer noopener">highlighted at a conference</a> earlier this month, previewing Microsoft&#8217;s foray into the space.



In recent weeks, the concept of a metaverse, which is a digital universe where people can interact virtually, has inundated the market. Meta, formerly known as Facebook, has rebranded to reflect its future vision, adding that moving forward the tech giant will be “metaverse-first, not Facebook-first,” Blockworks <a href="https://cms.blockworks.co/zuckerberg-says-facebooks-new-name-will-be-meta/" target="_blank" rel="noreferrer noopener">previously reported</a>. 



Separately on Wednesday, Disney CEO Bob Chapek said during the company’s fourth-quarter <a href="https://www.fool.com/earnings/call-transcripts/2021/11/11/walt-disney-dis-q4-2021-earnings-call-transcript/" target="_blank" rel="noreferrer noopener">earnings call</a> that the media giant plans to take a leap into the metaverse as well, consistent with its history of adopting technological innovation. 



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Suffice it to say, our efforts to date are merely a prologue to a time when we&#8217;ll be able to connect the physical and digital worlds even more closely, allowing for storytelling without boundaries in our own Disney metaverse,” Chapek said. </blockquote>



<h3 class="wp-block-heading">NFTs more mainstream ready than DeFi</h3>



While decentralized finance, or DeFi, is also a popular sector within the crypto industry, Rhodes said it’s harder for the public to grasp. “Then NFTs&#8230;brands can embrace them without really understanding too much about the tech,” he said.&nbsp;



Last week, Microsoft&#8217;s Rhodes said that the industry has hit an inflection point and the whole crypto ecosystem is just scratching the surface of what NFTs’ are, Blockworks <a href="https://cms.blockworks.co/microsofts-rhodes-crypto-defi-and-nfts-have-moved-beyond-early-adoption/" target="_blank" rel="noreferrer noopener">previously reported</a>. 



In the near future, Rhodes said he expects to see things like NFTs at the top of the curve, where it currently sits.&nbsp;



“Many brands will continue to ape in with their own version of an NFT, which in most cases is going to be a relatively conservative approach, right? As a first toe in the water,” he said. “Then as they learn more, they’ll start to realize there’s a lot more they can do with the technologies on the brand side,” he said.&nbsp;



Between now and the next summer, Rhodes thinks people will start to evolve their understanding of NFTs and what they can do with it beyond just trading cards.&nbsp;



“I think you’ll start to see much more awareness in the market around what NFTs can be and how you might use those,” he said.



<hr class="wp-block-separator"/>
Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
<hr class="wp-block-separator"/>

Microsoft’s Blockchain Director: Major Brands Embracing NFTs Will Drive Mainstream Adoption

<div id="highlights-block_618177f9128d2" class="highlights">
 <ul>
 <li>The company’s famous “Just Do It” slogan and “Swoosh” logo were two of the handful of applications filed with the US Patent and Trademark Office</li>
 <li>Nike is hiring two virtual material designer positions which will play a “key role in redefining our digital world, ushering us into the metaverse and growing our team’s capabilities”</li>
 </ul>
 
</div>



Nike is looking to trademark its products’ “virtual goods” based in the US, according to an application <a href="https://tsdr.uspto.gov/documentviewer?caseId=sn97096366&amp;docId=APP20211030100704#docIndex=1&amp;page=1" target="_blank" rel="noreferrer noopener">filed</a> with the US Patent and Trademark Office in late October.&nbsp;



The sports apparel and sneaker company filed seven requests for trademarks and patents on their goods ranging from footwear, clothing and sports bags to art, toys and accessories.&nbsp;



One of the sections identified trademark protection as downloadable “virtual goods, namely, computer programs featuring footwear, clothing, headwear, eyewear, bags, sports bags, backpacks, sports equipment, art, toys and accessories for use online and in online virtual worlds.”



<figure class="wp-block-image"><img decoding="async" src="https://lh3.googleusercontent.com/EP1U78XHV_AFGoIZwtPtuy1QPTOap7cjrOWa_AsR9Nzr8zWooSqBs9B03kkNKt0rMxMRcuQrpyCH02UFDrpYXIcd2XO2AruDM5GKdBCrigQWHe414A1DW11ZO-80BCwr3NPZ3rOi" alt=""/><figcaption>Nike&#8217;s filing with the USPTO</figcaption></figure>



These requests hint at the possibility that the company is planning to either sell its products as virtual goods or non-fungible tokens (NFTs) or is trying to protect its products from becoming NFTs.&nbsp;



The company’s famous “Just Do It” slogan and “Swoosh” logo were two of the handful of applications filed with the Patent and Trademark Office. The company also filed for patents on virtual “Air Jordan” and “Jumpman” logos as well.&nbsp;



The filing was requested by Nike’s Vice President of Trademark, Copyright, and Design Patent Jamie Lemons as well as Marion Costello, a senior trademark paralegal manager at Nike, and Mike Maoz, assistant general counsel for trademark and design at Nike.



The company and individuals involved were not available for immediate comment on the filings when requested by Blockworks.&nbsp;



Although the application was filed late October, it will take some time to be addressed. The&nbsp; Patent and Trademark Office stated the case has not been assigned to an examining attorney and will be after about six months from its filing date.



Separately, Nike is hiring four virtual material designers, according to job <a href="https://jobs.nike.com/job/00546286?utm_source=www.themetaversejobs.com" target="_blank" rel="noreferrer noopener">postings</a> by the company. Three positions are available for the “Virtual Material Designer II” role, while one position is open for the “Virtual Material Designer I, Footwear” job.&nbsp;



The position will partner with the material design team at Nike “to create and visualize the most sophisticated and innovative virtual material concepts in the world using 3D tools,” it stated. “This role sits in the Digital Product Creation group, a team focusing on igniting the digital and virtual revolution at Nike,” the posting added.&nbsp;



The positions will play a role “in redefining our digital world, ushering us into the <a href="https://cms.blockworks.co/the-investors-guide-to-the-metaverse/" target="_blank" rel="noreferrer noopener">metaverse</a> and growing our team’s capabilities,” it said.

Nike Files to Trademark ‘Virtual Goods’; Hiring Metaverse Designers

<div id="highlights-block_6181609fa29b7" class="highlights">
 <ul>
 <li>The company will introduce over 90 new services and updates in three major areas including powering the metaverse</li>
 <li>“You can absolutely expect us to do things in gaming,” Nadella said</li>
 </ul>
 
</div>



Microsoft is the latest company stepping into the metaverse, joining a list of other big-name brands and businesses venturing into the digital world, the company’s CEO shared during the Microsoft Ignite <a href="https://www.youtube.com/watch?v=lLPYSsqyukk&amp;t=48s" target="_blank" rel="noreferrer noopener">conference</a> on Tuesday.



“As the digital and physical worlds come together, we are creating an entirely new platform layer which is the metaverse,” Microsoft CEO Satya Nadella said. “In a sense, the metaverse enables us to embed computing into the real world and to embed the real world into computing bringing real presence to any digital space,” Nadella added.&nbsp;



The company will introduce over 90 new services and updates in three major areas including powering the metaverse, Frank Shaw, corporate vice president of communications at Microsoft said in a blog <a href="https://blogs.microsoft.com/blog/2021/11/02/microsoft-cloud-at-ignite-2021-metaverse-ai-and-hyperconnectivity-in-a-hybrid-world/" target="_blank" rel="noreferrer noopener">post</a> on Tuesday.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“What’s most important is that we are able to bring our humanity with us and choose how we want to experience this world and who we want to interact with,” Nadella said.&nbsp;</blockquote>



Digital technology has been at the forefront of every industry in the past 18 months and is now more necessary than ever, Shaw wrote. The metaverse is a “persistent, digital world that is connected to many aspects of the physical world, including people, places and things,” he added.&nbsp;



The company is thinking about a new medium and an application to power metaverses similar to the way Microsoft talked about the internet and websites back in the 1990s. With that, the company plans to “continue the evolution of the metaverse” through two new initiatives, Shaw stated.&nbsp;



The first initiative, <a href="https://cloudblogs.microsoft.com/dynamics365/bdm/2021/11/02/gain-a-new-perspective-with-dynamics-365-connected-spaces/" target="_blank" rel="noreferrer noopener">Dynamics 365 Connected Spaces</a>, will provide people the ability to interact from any space from the retail stores to factory floors through AI-powered models and observational data while the second initiative <a href="https://news.microsoft.com/innovation-stories/mesh-for-microsoft-teams/" target="_blank" rel="noreferrer noopener">Mesh for Microsoft Teams</a> will allow people to use personalized avatars and immersive spaces. The preview for the first initiative will be available in early December, while the second product will roll out in the first half of 2022, the company stated.&nbsp;&nbsp;



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="288" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg" alt="" class="wp-image-10244" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=512 512w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-1.jpg?w=80 80w" sizes="(max-width: 512px) 100vw, 512px" /><figcaption>Mesh for Teams users can bring their avatars into immersive spaces, it said. Image courtesy of Microsoft</figcaption></figure></div>



“The metaverse enables shared experiences across both the physical and digital worlds. As enterprises accelerate their digital transformation, the metaverse can help people meet up in a digital environment, make meetings more comfortable with the use of avatars and facilitate creative collaboration from all around the world,” Shaw said.&nbsp;



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="288" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg" alt="" class="wp-image-10245" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=512 512w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/11/Microsoft-2.jpg?w=80 80w" sizes="(max-width: 512px) 100vw, 512px" /><figcaption>Avatars can meet and collaborate in Mesh for Teams immersive space with both the physical and digital world. Image courtesy of Microsoft</figcaption></figure></div>



Separately from these products, Nadella said on <a href="https://www.bloomberg.com/news/videos/2021-11-02/how-microsoft-is-finding-new-ways-of-connecting-people-video?utm_campaign=socialflow-organic&amp;utm_medium=social&amp;cmpid%3D=socialflow-twitter-tv&amp;utm_source=twitter&amp;utm_content=tv" target="_blank" rel="noreferrer noopener">Bloomberg TV</a> that its video game brand Xbox will “absolutely” focus on incorporating metaverse into its games.



“You can absolutely expect us to do things in gaming,” he said. “If you take Halo as a game, it is a metaverse. Minecraft is a metaverse, and so is Flight Sim. In some sense, they’re 2D today and the question is can you now take that to a full 3D world, and we absolutely plan to do so,” he added.&nbsp;