Nike-Owned NFT Company RTFKT to Sunset Operations in January 2025

RTFKT, the NFT wearables company acquired by Nike in 2021, has announced that it will officially wind down operations in January 2025. The company, known for creating virtual sneakers and digital fashion, made the announcement on December 2 via an X (formerly Twitter) post.

In its announcement, RTFKT stated that it will launch an updated website to honor its legacy, showcasing the innovative work that defined the brand’s journey in the NFT space. The company also confirmed that it will release one final collection, called "BLADE DROP," before ceasing operations. This collection will serve as a testament to RTFKT's commitment to pushing the boundaries of digital fashion and blending various cultural and virtual worlds.

"RTFKT isn’t ending. It’s becoming what it was always meant to be — an Artifact of cultural revolution," the company added, hinting at the lasting impact of its digital creations on the broader cultural landscape.

RTFKT’s Legacy in the NFT Space

Founded in 2020, RTFKT quickly gained attention for its innovative approach to NFTs and virtual wearables. The company raised at least $8 million from investors, including the prestigious venture capital firm Andreessen Horowitz, during the height of the NFT craze in 2021. Later that year, Nike acquired RTFKT for an undisclosed sum, marking a significant move by the sportswear giant to expand its footprint in the metaverse and digital fashion.

Nike's acquisition was part of its broader strategy to serve athletes and creators at the intersection of sports, creativity, gaming, and culture, with a focus on metaverse and digital assets.

A Strong Financial Run Amid Changing Market Conditions

Since its inception, RTFKT has generated nearly $50 million in revenue, with over $45 million of that figure coming from royalties. The company has ranked as one of the top NFT projects by earnings, securing the ninth position on DefiLlama’s royalty earnings chart.

Some of RTFKT's most successful drops include the MNLTH and CloneX Mintvial collections, which brought in $16.4 million and $13.9 million in royalties, respectively. These earnings were largely generated during the NFT boom in 2021-2022, when the market saw an unprecedented surge in interest and investment.

The NFT Market’s Evolution

The news of RTFKT’s closure comes at a time when the NFT market has experienced a shift. November 2024 saw a resurgence in NFT sales, hitting a six-month high with $562 million in total sales, according to CryptoSlam data. Year-to-date sales for NFTs have surpassed $9.9 billion, already exceeding 2023's total but still far behind the record-breaking figures of $15.7 billion in 2021 and $23.7 billion in 2022.

As the NFT space continues to evolve, RTFKT's departure signals the end of an era for one of the most prominent names in the industry. While the company will no longer operate under its original brand, its influence on the NFT and digital fashion landscapes is expected to endure, with its products continuing to be viewed as cultural artifacts of the digital age.