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Reebok Impact is an AI experience built by Futureverse, a New Zealand based Metaverse and AI company, in collaboration with sneaker giant Reebok.

Customers can transform their favourite photos into custom digital sneakers by sending an Instagram DM to @ReebokImpact. An AI generator then creates a personalised sneaker design inspired by the image.

The experience allows for up to four digital sneaker creations, which can be shared or purchased as game-ready files compatible with platforms like Unreal Editor for Fortnite (UEFN) and Roblox. Additionally, these digital sneakers will be interoperable with various virtual experiences, many of which Futureverse are involved in creating.

Some lucky users can even have their creations made in the real world, but this is competition-based and will only happen for a select group who win.

The onboarding experience for Reebok Impact is slick.

Users can choose to sign in using a self-custodial wallet, email or socials.

In the video below you can see how quick it was for us to set up an account (well not literally this fast, the footage is sped up!).

The flow is simple.

The sneaker creation flow is also seamless.

For this example — I chose to customise the Reebok sneakers using Instagram.

All of this is done by Instagram DMs, which is pretty impressive, and I was quite impressed that the AI noticed this image was taken near the Emirates (Arsenal’s stadium) and therefore made the first iteration of the sneaker Arsenal red.

You’re then redirected to Reebok Impact’s site in case you want to purchase the sneaker.

Still in the Instagram app (but redirected to the website)…

Futureverse and Root Network 🔮

Although Reebok’s name is on the tin, this has been built out by their partner Futureverse.

Futureverse may not be known to many but they are quietly one of the biggest players in the Web3 and Metaverse space. They’ve also been AI-native since inception, before the hype.

They dub themselves as an AI and Metaverse company that enables interoperable, scalable virtual worlds.

Their technology stack consists primarily of the Root network, a layer 1 blockchain that has EVM (Ethereum Virtual Machine) capabilities. Futurepass is their native smart wallet, that enables fast onboarding for anyone that wants to use it.

The business raised $54m in July 2023, perhaps taking advantage of their AI roots as they saw the Artificial Intelligence bubble ramp up — and most recently announced a $5m equity swap deal with Web3 behemoths Animoca Brands.

They have previous experience in sport - too. I covered their Altered State Mind Artificial Intelligence Football Association in January 2022, which was used to collaborate with FIFA for the Women’s World Cup in July 2023.

The onboarding process for Reebok Impact is flawless and well-executed. Offering both social sign-in and the option to use a self-custodial wallet should be the bare minimum, but it’s stunning how few propositions that are consumer-facing choose to do so.

The ability to customise prospective digital sneaker NFTs with AI generation, native to a consumer application like Instagram, is incredibly interesting. It might not be an ‘industry-first’ but I’ve not seen too many people using social channels in this way. Configuring and customizing digital content is simple and intuitive. It doesn’t feel like a clunky AI program, as many do, it feels like a very easy-to-use chatbot but native on Instagram.

Purchasing is also easy, with the option to use Apple Pay or enter your card details directly on the checkout page. Users who have never interacted with digital collectibles should find this process straightforward.

Where my reservations lie is whether the quality of execution matches the level of innovation and, more importantly, whether it aligns with what customers expect and desire from a brand like Reebok. Companies such as Futureverse have done extensive experimentation and developed a lot of top technology.

The key now is scaling.

What they've achieved at the intersection of AI and Web3 is remarkable, and they are considered best-in-class in that field, however, they now need to combine their easy onboarding features with the ability to operate at a large scale. I’m not sure that has happened here with Reebok.

On Reebok’s side, it seems their Web3 strategy is primarily partnership-based, whether with STEPN or Futureverse, for example. They do not appear to be following the same approach as competitors like Nike and Adidas, who are incubating Web3-native teams internally to develop long-term strategies, with .SWOOSH and Adidas Collect respectively. Reebok seems to be relying on partners, treating this more like a licensing model — which is not to say that it won’t succeed in the short term, but could lead to strategic and innovation challenges in the long run. Broadly speaking, brands that are completely are completely outsourcing their Web3 strategies, in this licensee-licensor model, will have a tougher time creating propositions that are slick, easy to use and have demand.

One could view this cynically as Reebok executives have seen that their competitors, such as Adidas and Nike (who have admittedly slowed down in their Web3 developments recently) are ‘embracing’ Web3. Reebok, noticing this trend, likely decided they needed a Web3 strategy themselves but perhaps lacked the internal expertise, budget, or desire to fully invest. As a result, they’ve opted to partner with technology experts like Futureverse and companies like STEPN for scale, particularly in the digital sneaker space.

To conclude — Reebok and Futureverse have cleverly created a proposition here that merges AI-powered consumer-led creation native in a social application, that can then be authenticated and owned using a blockchain. But whether the juice is worth the squeeze is largely dictated by scale. At the price of the digital assets, this is not something that looks to be a strong revenue generator for Reebok, and therefore the focus should be on a large audience, which I don’t think has been achieved. Going to where the audience is (Instagram) is only one step. Getting them to participate is arguably just as, or more important.

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