Nike sells RTFKT and moves to shut down its NFT business
Nike has reportedly sold its digital collectibles subsidiary RTFKT in December, moving ahead with plans to wind down its NFT operations by the end of January.
The sale comes just over a year after Nike first announced it would shut down the “Artifact” unit and scale back blockchain-related initiatives. RTFKT confirmed the transition in a public statement, saying it was proud of the community and creative culture built under Nike’s ownership, reports Cryptopolitan.
Acquired in 2021 during the peak of the NFT and metaverse boom, RTFKT was part of Nike’s push into digital fashion and collectibles. The company did not disclose the buyer or financial terms of the transaction. Nike said the sale marked “a new chapter” for RTFKT and its community. The move signals a clear step away from NFT production for the sportswear giant.
Strategic pivot back to core business
Nike’s exit from NFTs reflects a broader strategic shift under CEO Elliott Hill, who appears focused on returning the company to its core strengths in athletic apparel and footwear. In September, Nike had already paused NFT drops developed by RTFKT, while keeping some gaming-related digital wearables partnerships alive. RTFKT was originally acquired under former CEO John Donahoe, who emphasized direct-to-consumer sales and digital experimentation.
With Hill now in his second year, Nike is rebuilding relationships with traditional retail partners like Dick’s Sporting Goods and Foot Locker. Financially, the company’s latest quarterly results beat expectations, with $12.4 billion in revenue and stronger-than-expected earnings. However, weaknesses remain, including a sharp 30% drop in quarterly sales at Converse. The RTFKT sale underscores Nike’s retreat from speculative digital markets.
Legal fallout and RTFKT’s legacy
Despite the sale, Nike continues to face legal challenges tied to its NFT exit. A class-action lawsuit filed in Brooklyn federal court alleges that Nike’s abrupt shutdown of RTFKT caused the value of its NFTs to collapse, leading to investor losses. Plaintiffs claim the NFTs were unregistered securities sold without proper disclosures, seeking more than $5 million in damages. The case echoes earlier legal scrutiny faced by other NFT issuers, including Dapper Labs.
Meanwhile, RTFKT’s legacy remains tied to its cultural impact and the vision of its late co-founder, Benoît Pagotto, who passed away last year at age 41. Fellow founders said his creative influence would continue to shape the project’s future. Even as Nike steps away, RTFKT’s role in bridging digital and physical creativity remains a defining chapter of the NFT era.
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