The Hype Is Real

Welcome to The Hype Is Real where we break down the latest news, stories & happenings around sports & web3.

Here's What Happened This Week:

• Nike Unveils .Swoosh Metaverse Platform

• Big Names = Big Lawsuits

• Long-Time Media Executives Launch Agency Aimed At Web3 & Metaverse

• Chicago Bulls Legend Scottie Pippen Gets In On NFTs

Let's Dive Into It...

Nike Launches 'Dot Swoosh' Metaverse Platform 

This week Nike announced the launch of ‘.Swoosh’ (pronounced ‘dot-swoosh’), a platform designed to highlight the brand’s initiatives in virtual apparel. Members will be able to collect and eventually create virtual jerseys, shoes, and other goods they can wear in games and other online spaces. They'll also be able to get access to real-world products and special events, too.

Nike Virtual Studios GM, Ron Faris, says: “We are shaping a marketplace of the future with an accessible platform for the Web3-curious."

In simple terms: We’re gonna make this web3 thing so easy to use, anyone can do it.

The platform isn't exactly up and running yet, but sign-ups started this past Friday. Nike plans to gradually let new users onto the platform through the end of the year, ahead of the first .Swoosh NFT drops in January 2023. The brand's initial community building will focus on the US and some European countries.

Nike also suggested how it will motivate some creators. After that first collection arrives, the firm will launch a community challenge that gives winners a chance to co-create virtual items with Nike. They'll earn a royalty on whatever products they ultimately sell.

The platform debut comes just under a year after Nike bought RTFKT to accelerate its virtual goods business, and represents its first major push into the field.

Nike also faces some tough competition from athleticwear rivals eager to profit from the blockchain. Adidas has participated in NFT drops, for instance, while Reebok has released its own collectible items. The .Swoosh rollout could help Nike counter those challenges by creating a go-to hub for digitally-savvy fans.

Investor Sues Tom Brady, Gisele Bundchen & Steph Curry Over FTX Fallout

As if things couldn't get any worse for the athletes involved...

On Wednesday, a class-action lawsuit against Sam Bankman-Fried, the founder of cryptocurrency exchange platform FTX, also named several athletes and celebrities as defendants after they "aggressively marketed" the company, per Zachary Halaschak of the Washington Examiner.

Athletes listed include Tom Brady, Stephen Curry, Shaquille O'Neal, Udonis Haslem, David Ortiz, Trevor Lawrence, Shohei Ohtani, and Naomi Osaka. The lawsuit claims these people "promoted, assisted in, and actively participated" in the alleged scheme.

FTX filed for bankruptcy this past week after facing a "severe liquidity crisis."

The class-action suit, led by Oklahoma resident Edwin Garrison, argues FTX was "designed to take advantage of unsophisticated investors from across the country.

The athletes named played a significant role in helping to promote the FTX brand, with Brady taking part in a commercial alongside then-wife Gisele Bündchen prior to the couple finalizing their divorce. They were also reportedly shareholders in the company.

Curry promoted FTX as well, saying in his commercial that the platform enabled him to buy and sell cryptocurrency without being an expert. Lawrence signed an endorsement deal with Blockfolio, which is powered by the FTX app, becoming the first of its kind to pay a portion of its signing bonus in cryptocurrency.

Long-Time Media Executives David Levy & Chris Weil Launch Horizon Sports & Experience

Longtime media executives David Levy and Chris Weil recently launched a new marketing agency alongside Horizon Media, aimed at new events, IP creation, and experiential marketing—both in the physical world and in the metaverse.

The new agency will look to tap opportunities in the evolving Web3 and the metaverse platforms for new sports and event experience marketing as broadcasters, streaming platforms, and brands increasingly go online to chase sports fans and audiences.

Levy, former president of Turner Broadcasting, and Weil, chairman of Momentum Worldwide, will serve as co-CEOs and equity partners, alongside Horizon Media.

David Levy said this in an interview:

“It’s not going to be your standard 30-second TV spots. And the timing could not be better. Private equity firms are investing heavily in sports franchises, new leagues are forming and NIL rights are here. This space is growing so fast, and they’re going to need companies like ourselves.”

Chris Weil had this to say:

“Given fundamental shifts in consumer attitudes and behaviors that are continuing to drive the evolution of brand experience—both physical and digital—, I believe that Web3 is going to be the ‘experience Web. So, we’re creating a company that will be at the forefront of monetizing Web3 in this blended physical-digital world.”

The agency’s goal is to combine the expertise of its three backers: Levy in content creation and sales, Weil in experiential marketing, and Horizon’s CEO/founder Bill Koenigsberg in brand building. 

NBA Legend Scottie Pippen Turns His Image Into NFTs

Chicago Bulls legend and Michael Jordan's partner in wreaking havoc on the court, Scottie Pippen is immortalizing his image as an NFT on Artbitrum.

Scottie, who won six NBA championships with the Chicago Bulls in the 1990s, has teamed with Smolverse to immortalize his image into playable NFTs on the Arbitrum network.

Smolverse is a “community-driven virtual fun and playful world of progressively-evolving NFTs on Ethereum layer two scaling solution Arbitrum.”

It’s a fantasy action rogue-lite role-playing game (RPG) combining MMO-like social gameplay and NFTs.

What To Watch:

Future is DAO - Blockchain to Revolutionize Sports Fan Experience:

Blockchain technology is spurring the next modern sports revolution centered around increased fan ownership of the player/fan and team/fan relationship.

Khalid Jones, who is the principal at The Kolier Group, discusses the advent of sports data and analytics as well as sports fantasy and betting and how they tie into all of this.

Check out the full TEDtalk below:

What To Read:

Thanks for reading this week!

Anything I could be doing better? Let me know.

Take care,

Malcolm