Unexpected NFT decision from a major sportswear brand.

Nike's NFT innovation leader RTFKT announced that it will cease operations in January 2025. The company will offer a special collection before its closure and will launch a digital heritage project. These strategic steps will crown the company's impressive journey in the metaverse and virtual products market.

As the NFT Market Breaks Records, the Giant Company's Surprise Move

The sportswear giant Nike's digital shoe manufacturer RTFKT, which it acquired in 2021, announced that it will cease operations in January next year. In its farewell move, the company stated that it is preparing a special collection named 'BLADE DROP' along with a renewed website.

Shortly before, RTFKT management shared on social media that they believe these final steps they are planning to preserve the brand's innovative legacy will create "a cultural revolution."

Since its establishment in 2016, RTFKT has drawn attention with its technology-focused approach and managed to secure $8 million in investments from sources including leading cryptocurrency investor Andreessen Horowitz. Nike's acquisition of the company was seen as a concrete step to increase its presence in the metaverse at that time.

The MNLTH and CloneX Mintvial projects in RTFKT's digital product portfolio have generated significant revenue for the company, earning $16.4 million and $13.9 million, respectively.

The decision to close came despite the NFT market reaching a transaction volume of $562 million in November, the highest in the last six months. The sector has already surpassed its performance in 2023 with annual sales figures approaching $9.9 billion.

Nike, in a statement made in June 2023, had revised its revenue expectations downward, pointing to a decline in sneaker demand for the upcoming year.