[Thoughts #56] Shopify + RTFKT 3D Files
Consume 🛍 and Create 🛠
Some fun updates in the space that will continue to define what the future of NFTs might look like from a commercial POV.
But first! I’m creating a Twitter list of Web3 writers in the space.
If you know anyone that should be on the list or would be able to make an intro, it’d be greatly appreciated! 🙏 I want to meet and chat with others that are writing about Web3 and creating some quality content. I believe that writing (well) about Web3 will be fundamental to educating everyone about the space and pushing it forward. 💪
Token-Gated Commerce
Shopify recently made some big announcements through Shopify Editions platform. Think digital keynote without any people talking with a cool landing page.
Lots of updates ranging from audience targeting, Shop cash rewards, Twitter integrations, Point of Service hardware (look out Square Block), and the list goes on.
But what stuck out to those in the NFT space was this:
Also, Shopify summarized their NFT NYC integrations in partnership with some big names in the space. Cool video:
Why is Shopify going in on token-gated commerce? Here’s my take:
Shopify has data. Lots. Of. Data. They have so much data I bet they know with confidence (not just vibes, but with data) practically everything about consumer. What’s hot, what’s not, user level preferences, even who just got a promotion at work based on what they’re buying. So, NFTs?
NFTs = Consumer activity = Online commerce = Something Shopify is looking at, closely. What are the consumers buying and selling? The jpegs, of course. But they’re also purchasing physical merch, just like brands in any other industry.
Did Shopify just blindly jump in and partner with these NFT brands and their activations? Nope. They actually had a pilot a few months earlier at SXSW 😉
Watch this, another cool video:
I imagine with all the purchase data they had, they were actually able to rank how successful this partnership was. I don’t know what metrics are the most important for this type of test (GMV per visitor, total GMV, GMV per hour?) but I imagine the numbers were encouraging. On top of that, the Doodles activation seemed to be a great experience for holder and non-holders alike. Numbers aside, I’m sure the Shopify team was impressed at that as well.
At the end of the day, Shopify is a business and $ matters. Shopify is placing a strategic bet to create tools for every NFT project to apply token-gated commerce easily.
Increasing the business moat
Going back to the fact that Shopify is a business. Token-gated commerce, or token-gated anything is still in its infancy. However, I wouldn’t be surprised if the resident ‘TPan’ (or whoever the NFT degen is over there) on their team came to the same conclusions as I did when they saw BAYC’s spring merch drop.
That’s a lot of transactional volume no matter how you cut it. Folks, this is for caps, t-shirts, and sweaters.
If Shopify wants to get a lion’s share of this market, they’re going to jump on it quick. If they don’t, a competitor will jump in or the projects will build it. I recall BAYC partnering with Coinbase Commerce for their token-gated drop.
It’s not just about merch
Merch might be the easiest reason for NFTs to have a Shopify integration, but it isn’t only one. Shopify wants to be the payment partner of choice. Crypto, fiat, it does’t matter.
Security and better UI are a couple of pain points in Web3. Shopify helps ease that pain from a commerce angle.
I’m looking forward to seeing how Shopify continues to evolve its Web3 products online and in-person. Kudos to them for skating to where the puck is going. 🏒
RTFKT 3D Files
On Monday, RTFKT (if you don’t know about RTFKT check out my dive on them) had a huge announcement.
Cool video TPan, what gives?
These are full body 3D files. This is not a small task. There are 20,000 Clone X’s out there.
I don’t know anything about 3D rendering or animation, but 15 minutes to download these files probably means these are high-fidelity. Also some of the file formats are compatible for Unity and Unreal Engine. If you are a gamer you know what that means…🤯
Fun fact: Unreal Engine is a product from Epic Games, creator of Fortnite
Full commercial rights. This sorta sounds like Bored Ape Yacht Club’s commercial rights, right? Yup, and we know how that propelled them to a different dimension.
The RTFKT team is serious about this. They’ve created a whole section in the Discord server dedicated to this announcement. This effort is being set up for success with the proper social and community support.
The community responded with enthusiasm and displayed their skills. And I guess I’m displaying mine by writing about it 😂.
Some of this stuff is mind-boggling. Keep in mind they just released the files on MONDAY. Today is THURSDAY. WTF?!
The legal terms: ‘Full commercial rights’ is impressive, but there are some limitations. I’m not a lawyer (aka this isn’t legal advice), but @justfred_ar pointed out something interesting in the terms on a Twitter Spaces a couple days ago.
Less than 1,500 employees and less than $40 million in annual revenue. Interesting, why is that? 🤔 No idea how they came to those numbers, but it definitely prevents these folks from being part of the picture:
Also this:
What’s a ‘competitor’?
Interesting, so it seems that RTFKT is granting a broad commercial license, with some restrictions. As they should.
Thanks for the RTFKT legal terms crash course, WHAT GIVES?
This is massive for Web2 brands
Remember RTFKT was acquired by Nike in December. I still get the goosies every time I watch this video, so simple and so powerful.
I know nothing about what’s happening behind closed doors over at Nike HQ, but imagine the conversation went something like this 😂:
RTFKT: Hey, we’re going to give full commercial rights to our Clone X holders
Nike Legal: What?! That’s impossible! That’s crazy! NO NO NO NO.
RTFKT: Why not? This doesn’t impact Nike IP. Look at what happened with the Bored Apes. We have community of builders and entrepreneurial folks similar to theirs. This would add value to the overall brand.
Nike Legal: Hmm…This is just a RTFKT thing? Doesn’t affect Nike? They won’t mess with the Swoosh?
RTFKT: Yup, we can create terms that protect the Nike and RTFKT brands respectively. We’re giving them broad commercial rights, but we’ll still create guardrails in the terms.
Nike Legal: This is interesting…we can get behind this.
Can you imagine all the legal teams shaking in their boots when their marketing, product, or strategy counterparts propose NFT products with commercial rights?
Nike just solved that problem. They’ve created a precedent that could actually make this all work for Web2.
Imagine Disney, licking their chops at NFTs but still on the sidelines due to legal (love/hate relationship with legal haha). Their existing IP is just too valuable to mess with and who knows what their global audience thinks about NFTs.
But what if…
Who knows, maybe I’m wrong and Disney will never get into Web3 😂
But it makes you wonder…
See you tomorrow :)