Hey there folks, as you may know, it’s common for large brands such as Nike to take legal actions against anyone who may be found to be using their company’s brand name to illegally promote or sell fake goods or merchandise. However, what if we told you that this is one of the first of its kind where Nike has legally challenged a Detroit based site, StockX for illegally promoting and selling NFT (Non-Fungible Token) versions of the Nike Dunk, Jordan 1, and other famous shoe lines.

Nike has filed a lawsuit wanting StockX to stop selling these NFTs and to make them hand over all their profits which they made so far from this. Further, to top it off, Nike wants to confiscate and destroy these NFTs based on the Ethereum Blockchain.

Yup, you did read that part right, the NFTs are based on the Ethereum Blockchain meaning that they are permanently inscribed on it and there is no possible way of destroying them.

Why is Nike so adamant about doing this?

Well, the answer is already obvious from the above part that Nike wants to protect its brand name from being tarnished.

However, there is another part to this story, Nike is obviously keen on protecting its recently acquired NFT studio RTFKT which is a digital art studio already focused on the sneaker themed NFT market.

Image showing the Vault NFT collection from the StockX website.

Whereas, StockX without taking any permission from Nike, had recently launched its own Nike sneaker NFT collection under the category name Vault NFTs, where one can redeem the NFTs for the same equivalent pair of real physical Nike sneakers. A customer would just need to surrender the NFT to the website in exchange for the real equivalent sneaker pair. Hence, Nike has filed a brand infringement case against them.

How Nike is planning to destroy those Ethereum Blockchain-based NFTs?

As we mentioned earlier, Ethereum Blockchain-based NFTs can’t be destroyed in any way which leaves us the question that how or what does Nike mean by that they want to destroy the NFTs?

Well, experts believe that this is quite true that these kinds of NFTs can’t be destroyed unless in the highly unlikely scenario of the developers accepting to fork the actual Blockchain to get it done.

Hence, the most possible logic is that once Nike is able to cease the ownership of the NFT collection by winning the lawsuit, they plan to send the NFTs to a burner wallet to get the job done. Well, this may not destroy the NFTs but would certainly serve the same purpose as no one would be able to recover them ever.

That will be all for now folks. Make sure to subscribe to our newsletter to receive weekly updates on all kinds of interesting topics.

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I am an avid tech lover. I mainly write articles on technology & crypto-related topics.

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