Nike NFT RTFKT project to close operations in early 2025

RTFKT, the creators of sneakers and non-fungible token (NFT) avatars acquired by Nike in 2021, has announced its closure.

The company revealed in a Dec. 2 post on X that it will end operations in January 2025.

Final collection and tribute to the legacy

“Today, we are announcing the plan to end RTFKT operations,” the post said. “Looking back, we’re incredibly proud of everything we’ve accomplished together.”

RTFKT also outlined plans to release a final collection in December, the MNLTH X, with the BLADE DROP before its closure. The team described this move as a testament to their dedication to innovation and the merging of the physical and digital realms.

Reflecting on its achievements, the company highlighted its role at the forefront of digital culture, pioneering the lifestyle integration of sneakers, gaming, digital fashion and Web3 technology.

The statement also highlighted his major contributions, including Clone X’s collaboration with renowned artist Takashi Murakami, the development of digital footwear that was transformed into physical products, and his support for 3D artists and digital creators.

To preserve its legacy, the company announced plans to launch an updated website to showcase its most impactful projects.

The rise and fall of RTFKT

Founded in 2020, RTFKT quickly rose to prominence, raising at least $8 million from investors such as Andreessen Horowitz. In December 2021, Nike took over, with then-CEO John Donahoe describing the move as critical to accelerating the sports equipment maker’s digital transformation.

The two companies partnered on several sneaker collections, even creating custom designs worn by NBA superstar LeBron James during the 2023 playoffs.

According to DefiLlama’s data, RTFKT’s total earnings reached almost $50 million, including $45 million in royalties, placing it in ninth place among NFT projects. Their most successful collections included the MNLTH and CloneX Mintvial drops, which generated $16.4 million and $13.9 million in royalties, respectively.

However, challenges emerged as the broader market cooled. CryptoSlam data shows that year-to-date NFT sales have reached $9.9 billion, significantly lower than the $15.7 billion and $23.7 billion recorded in 2021 and 2022.

In June, a Reuters report revealed that Nike had projected a decline in fiscal revenue for its NFT division, citing a decline in demand. Notably, Clone X, RTFKT’s flagship profile picture (PFP) collection, also experienced significant ratings drops. All of these factors ultimately led to the closure announced on Monday.

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