Nike Announces Closure of RTFKT, Its Digital Sneaker and NFT Studio
Dec 3, 2024
2 min read
Nike has confirmed plans to wind down RTFKT, its digital sneaker design and NFT studio, by January 2025. This decision marks a significant shift in Nike's strategy under new CEO Elliott Hill, as the company aims to realign its priorities in the evolving digital landscape.
Key Takeaways
RTFKT will cease operations in January 2025, following the launch of its final collection, "Blade Drop.
The studio was acquired by Nike in December 2021 for an undisclosed amount, believed to be around $1 billion.
RTFKT has been a pioneer in merging technology with culture, creating digital sneakers and NFTs.
The NFT market has faced challenges, impacting RTFKT's operations despite a recent uptick in sales.
Background of RTFKT
Founded in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, RTFKT quickly gained recognition for its innovative approach to digital fashion and NFTs. The studio's acquisition by Nike was seen as a strategic move to enhance Nike's digital footprint and capabilities in the metaverse.
RTFKT's offerings included unique digital sneakers and collectibles, leveraging blockchain technology to ensure authenticity. The studio's first major release, the "CryptoKicks," was launched in April 2022, allowing users to buy and trade virtual sneakers.
The Decision to Wind Down
The announcement to wind down RTFKT comes amid a broader reevaluation of Nike's digital strategy under CEO Elliott Hill, who took over in October 2024. The company has faced challenges in the NFT market, which has seen fluctuating demand and sales.
Despite a recent resurgence in NFT sales, with November 2024 figures reaching $562 million, the overall market remains volatile. RTFKT's decision to close its doors reflects the difficulties faced by many brands in the NFT space, as they navigate changing consumer interests and market dynamics.
Final Collection and Legacy
Before its closure, RTFKT plans to release its final collection, "Blade Drop," which aims to celebrate its legacy and innovative contributions to the digital fashion world. The studio has also announced plans for an updated website to showcase its work and preserve its history.
RTFKT's journey has been marked by significant achievements, including collaborations with renowned artists and the launch of popular NFT collections like CloneX and MNLTH. The studio's total revenue has reached nearly $50 million, primarily from royalties on its digital products.
Conclusion
As RTFKT prepares to close its operations, it leaves behind a legacy of innovation at the intersection of fashion, technology, and culture. The decision to wind down reflects the challenges of the NFT market and Nike's strategic shift under new leadership. While RTFKT may be ending its current chapter, it aims to transition into a new phase as an "artifact of cultural revolution."
Sources
EXEC: Nike to Wind Down Digital Sneaker Design and NFT Company RTFKT in January | SGB Media Online, SGB Media.
Nike’s NFT arm RTFKT to shut down after launching final collection, crypto.news.
Nike NFT: the company RTFKT will cease its activity in January 2025, The Cryptonomist.
Nike to Shut Down Virtual Sneaker Label RTFKT Under New CEO – BNN Bloomberg, BNN Bloomberg.
Nike Exits The NFT Market – Shuts Down Its NFT Studio RTFKT, InsideBitcoins.com.