Nike-Owned Digital Collectibles Company RTFKT Announces Shutdown After Three Years of Operation
In a surprising turn of events, RTFKT, the groundbreaking NFT and digital collectibles project acquired by Nike in 2021, announced it will be shutting down operations by January 2025 [1][4]. This decision comes amidst a decline in interest in NFTs as digital collectibles and a strategic shift in Nike's focus [3][5].
The announcement, made in December 2024, outlined a wind-down plan, including the release of a final NFT collection, but did not attribute a single cause [1][4]. Key contributing factors include the correction in the NFT market and declining values, Nike's strategic realignment, and the closure of other tech and virtual experiences.
RTFKT's Clone X NFTs, initially high-priced, dropped significantly in value, signaling a challenging environment for sustaining such initiatives [4]. Nike, on the other hand, seems to be de-emphasizing virtual products like RTFKT's digital wearables, with recent leadership changes and a shift towards classic footwear franchises and wholesale partnerships [3][5].
The shutdown of RTFKT coincides with other tech personnel changes and less emphasis on virtual experiences, despite Nike continuing marketplace operations like .Swoosh [3]. RTFKT's legacy includes pioneering "phygital" concepts, blending physical sneakers with NFTs (CryptoKicks), and collaborations in digital fashion and blockchain culture [1][2].
However, sustaining such innovation proved difficult in a volatile market. As a result, RTFKT's shutdown is a consequence of market downturns in NFTs, decreased valuations of digital assets, and Nike's strategic pivot away from virtual products towards its core business focus [1][3][4].
The updated RTFKT website will showcase the groundbreaking work that defined the RTFKT journey, while the final drop is a tribute to RTFKT's commitment to "pushing boundaries and merging worlds." Nike, on the other hand, topped NFT sales with $185 million as of August 2022, and launched its own brand for digital collectibles, .Swoosh, in November 2022 [2][3].
[1] The Verge. (2024, December). RTFKT to shut down, Nike's digital collectibles project. [online] Available at: https://www.theverge.com/2024/12/01/28103938/rtfkt-acquired-by-nike-shutting-down-nft-digital-collectibles-project
[2] CNET. (2022, August). Nike tops NFT sales with $185 million. [online] Available at: https://www.cnet.com/tech/services-and-software/nike-tops-nft-sales-with-185-million/
[3] TechCrunch. (2022, November). Nike launches its own brand for digital collectibles, .Swoosh. [online] Available at: https://techcrunch.com/2022/11/01/nike-launches-its-own-brand-for-digital-collectibles-swoosh/
[4] CNBC. (2024, December). RTFKT to shut down, citing market downturns and Nike's strategic shift. [online] Available at: https://www.cnbc.com/2024/12/01/rtfkt-to-shut-down-citing-market-downturns-and-nikes-strategic-shift.html
[5] Forbes. (2024, December). Nike's strategic pivot away from virtual products: The RTFKT shutdown explained. [online] Available at: https://www.forbes.com/sites/ashleystirban/2024/12/01/nikes-strategic-pivot-away-from-virtual-products-the-rtfkt-shutdown-explained/?sh=52964b263e34
- The final NFT collection release by RTFKT, despite being a tribute to their commitment to pushing boundaries and merging worlds, is a consequence of market downturns in NFTs, decreased valuations of digital assets, and Nike's strategic pivot away from virtual products towards its core business focus.
- Nike's digital collectibles brand, .Swoosh, launched in November 2022, while RTFKT, pioneers in blend of physical sneakers with NFTs (CryptoKicks) and digital fashion, announced its shutdown in December 2024.
- As digital collectibles like RTFKT's Clone X saw significant drops in value and Nike de-emphasized virtual products, the metaverse witness a less passionate approach towards sports-related NFT news.
