28.04.2025
Eugene Komchuk
Eugene Komchuk
Editor at Traders Union
28.04.2025

Why Nike abandoned NFTs: Examining the impact

Why Nike abandoned NFTs: Examining the impact How Nike journey into the NFT world ended

​The NFT boom once brought millions in revenue to Nike, but over time, demand for unique tokens waned. At the end of 2024, the brand shut down its NFT division, and now it must answer for this decision in court.

Nike is facing a $5 million lawsuit from a group of NFT buyers. Customers claim they lost hundreds of thousands of dollars after the brand closed its subsidiary RTFKT, which specialized in collectible assets.

The lawsuit states that Nike shut down the project without any prior warning. As a result, the NFTs issued under the Nike and RTFKT brands lost their value, and some of the tokens stopped displaying properly. The plaintiffs argue that if they had known this would happen, they wouldn’t have purchased the NFTs. They are now seeking compensation.

Nike's entry into the NFT market

Nike acquired RTFKT in December 2021, describing the move as part of its digital transformation strategy. Over several years, the two companies launched several joint projects. For instance, in December 2022, they introduced the first collection of Web3-enabled sneakers. The Cryptokicks iRL line featured built-in step counters and connectivity with Move-to-Earn gaming platforms.

RTFKT also created an NFT avatar collection in collaboration with renowned artist Takashi Murakami. The project, called CloneX, gained significant popularity for a time.

Overall, the venture into NFTs initially proved highly successful. In 2022, Nike topped the list of companies earning the most from NFTs. According to Dune Analytics, NFTs generated $185 million in revenue for Nike.

The company continued its Web3 development by launching a new platform called .SWOOSH. The project was intended to become a hub for learning about Web3 and a platform for buying, selling, and trading digital goods such as virtual sneakers and apparel.

One of RTFKT’s final major projects was a collaboration with the video game Fortnite. They released a joint NFT collection called Airphoria on the Polygon network, distributed among gamers.

Competitors' NFT initiatives

Nike was not the only brand exploring the NFT space. Adidas and Puma have also been actively developing their presence in Web3 and NFTs.

Adidas began its NFT efforts in 2021 with the Into the Metaverse project, launching collectible NFTs in collaboration with Bored Ape Yacht Club and other partners. Later, the company introduced the Adidas /// Studio platform to regularly release digital collections for use in metaverses and gaming environments.

Puma followed suit. In 2022, the brand launched the Nitro Collection NFT and introduced Black Station, an interactive 3D platform where users could purchase both physical and digital products.

The closure of RTFKT

Nike was the first major brand to exit the NFT race. In December 2024, RTFKT announced it would shut down operations by the end of January 2025.

Rumors about the shutdown had circulated for months, although RTFKT leadership initially denied them.

Ultimately, Nike decided to close its NFT division, releasing one final collection — MNLTH X with Blade Drop — while promising not to abandon Web3 initiatives entirely.

Why Nike abandoned NFTs

Nike has not officially disclosed the reason for closing RTFKT. However, experts believe the prolonged market downturn following the NFT boom of 2021–2022 influenced the decision. Interest in digital collectibles had significantly declined, prompting Nike to shift its focus toward more sustainable directions without maintaining a separate NFT unit.

The closure of RTFKT led to serious legal repercussions. NFT buyers accused Nike of a lack of transparency and timely communication, resulting in the devaluation of their assets. The company now faces court proceedings and reputational challenges amid growing dissatisfaction among investors and collectors.

The story of RTFKT highlights that adopting new digital technologies requires flexibility and readiness to adapt to changing market conditions. Nike’s decision to close its NFT division does not signal a retreat from Web3; on the contrary, the company continues to develop digital initiatives, leveraging the experience gained. This will allow Nike to build stronger strategies and engage more effectively with its community in the future.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Editors' Picks Crypto