- Nike has announced that its NFT sneaker company RTFKT will shut down next year
- RTFKT was acquired by Nike in 2021
- Nike said the move is meant to make RTFKT “an artifact of cultural revolution”
Nike has announced that it will sunset its NFT sneaker company RTFKT in January 2025 to make the company “an artifact of cultural revolution.” The sportswear heavyweight said that RTFKT has helped establish a connection between the sneaker world and the web3 space, adding that the connection “dissolved” the boundaries between “physical and digital creativity.” Nike disclosed that RTFKT will launch one more NFT collection before shutting down, which it said will affirm its commitment to redefine the link between the virtual and the physical world.
Nike Acquired RTFKT To Hasten its Digital Transformation
In an X post titled “A New Chapter for RTFKT,” the firm said it’s proud of being the first company to create digital sneakers that allowed holders to purchase their physical replicas. It also said that it helped “countless” artists explore the 3D world and find “their voices.”
— RTFKT (@RTFKT) December 2, 2024
It outlined its collaboration with Takashi Murakami to launch the Clone X collection among its successful projects. To wind down in style, RTFKT said that it will launch the “MNLTH X featuring the BLADE DROP” in December.
Nike acquired RTFKT in 2021 to boost its digital transformation with a focus on athletes. Announcing the acquisition in 2021, Nike said that RTFKT combines blockchain, NFTs, augmented reality, and game engines “to create one-of-a-kind virtual products and experiences.”
Nike Expects Revenue to Fall In 2025
In May 2023, Basketball legend LeBron James was seen wearing RTFKT-linked Nike sneakers. James also received a Clone X avatar from RTFKT’s Nikhil Gopalani. Early last year, Gopalani lost NFTs worth $173,000 to a scammer whom he described as a “clever phisher.”
According to a June report by Reuters, Nike expects its revenue to drop in 2025 as its customers embrace other sneaker brands. RTFKT’s sunsetting comes at a time when other blockchain-focused firms like Consensys are reducing their workforce.
Although Nike didn’t disclose the reason behind the decision, the move is likely part of cutting down on underperforming projects.
