RARES’ new membership-based NFT project is here to cheer up sneakerheads who strike out on the SNKRS app. Welcome to the “Hype Drop L Club.”
On Tuesday, the company announced the launch of its flagship NFT project: the “Hype Drop L Club” membership program.
Sneakerheads often find themselves frustrated after their selections are rejected on the SNKRS app, so RARES wants to incentivize those unpleasant experiences by offering weekly NFTs to those who can’t secure their grails on the popular platform.
“Millions of people each week apply for the SNKRS lottery and lose. Literally, 90% of people who want to win, lose each week,” said Gerome Sapp, RARES founder, and CEO, in an interview with Boardroom. “RARES wanted to mobilize and incentivize this community for the first time. We want to now provide an opportunity through an NFT to derive value and turn your loss into an NFT win.”
RARES’ mission is to create opportunities and access to cultural relics, such as sneakers, that transcended and become alternative assets. The Hype Drop L Club is the company’s next milestone aligning with its mission to allow sneaker fans to own NFTs that correlate with the sneaker drops they miss.
What the program offers
By default, sneakerheads don’t even realize they are part of an “L club” when they invest in sneaker lotteries since not every person can win every single time. Each week, RARES will drop L NFTs alongside SNKRS lotteries. The collectible trading card-like NFTs will mimic and draw inspiration from the sneakers being dropped that week.
“I’m not knocking Nike. They do an amazing job of controlling supply and demand; not everyone can win,” Sapp said. “I remember reading a meme after I took an L, and I was like, what if we create a club that allows you to turn your SNKR App L into an NFT win?”
The club is exclusive, but it’s open to anyone who participates in SNKRS lotteries. All you need to gain membership into the Hype Drop L Club is to prove your loss on the SNKRS App. The cool thing is, the more times you experience Ls on the SNKRS App, the more times you have access to the Hype Drop L Club’s NFTs each week.
“To do that, you have to email [or text] us a screenshot of Nike rejecting you. That is your only way into the club,” Sapp explained. “We then give you a link to the Hype Drop L Club, and you get instant access to the NFTs we provide and the utilities we’re providing around this community.”
RARES has to receive that proof within 24 hours for users to access the week’s NFT. Proof should be sent to firstname.lastname@example.org or (650) 677-1996.
The NFTs are built on Dapper Labs’ Flow blockchain and will be available on a first-come, first-served basis. Greg Sullivan, RARES chief creative officer, will be designing the initial NFTs, but as the club grows, the company will bring in more artists and celebrities to participate in the design process. It’s important to note that the Hype Drop L Club is not associated or partnering with Nike or the Nike SNKRS App on this project.
“Just like sneaker enthusiasts have experienced frustration with the current lottery system in place for buying shoes, consumers have found the same friction points as they attempt to onboard to Blockchain,” said Stephanie A. Smellie, VP of Content Partnerships at Dapper Labs, in a statement. “We’re thrilled to be working with Rares to help introduce their game-changing offering to sneaker fans around the globe.”
The value of an L NFT
The value is simple. You have to lose to be able to win, putting sneakerheads in a win-win situation and giving them another opportunity to land the sneakers they seek.
The Hype Drop L Club is launching with two NFT levels: Diamond and Club. Only the first 100 sneaker enthusiasts who share their L proof with RARES will get access to Diamond Level L NFTs each week. Club Level L NFTs will be reserved for the 101-1000 users who submit after that. Diamond Level NFTs are $60.00, while Club Level NFTs retail for $5.00.
All told, the most significant initial utility for L club members is a chance to win free sneakers each week — including the sneakers they didn’t get on the SNKRS App. Other perks for NFT holders include discounts on sneakers, access to the company’s discord channel, investment credits on RARES’ platform, and retail discounts. Sapp said RARES is launching a secondary marketplace in about a month where L NFT holders can resell their purchases.
RARES wants to foster a community with this club, which requires continued participation. Each NFT has a point value attached to it to build on that. The more NFTs a person owns, the more utilities and rewards they get to unlock. New rewards will be added regularly. As the club grows, Sapp hopes more notable brands get involved in incentivizing the value behind L NFTs.