Nike s
NFT and Web3
Company RTFKT
to Shut Down Amid Declining Market
Interest
RTFKT, the NFT-based virtual sneaker company acquired by Nike in 2021, has
announced plans to shut down its operations. This decision is likely driven by
the continued decline in NFTs over the past two years.
The company will end its web3 activities by January 2025. However, to preserve
its legacy, RTFKT plans to launch a new website showcasing its past projects.
The NFT Decline Claims Another Victim
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Sponsored
According to its latest announcement , RTFKT will reveal a final product drop
scheduled for this month—MNLTH X featuring the Blade Drop—which it described
as a symbol of its creative approach to combining digital and physical
experiences.
Founded in 2020, RTFKT developed products integrating game engines, NFTs,
blockchain, and augmented reality. Nike acquired the company during John
Donahoe s tenure as CEO, marking a notable move into digital assets and
the metaverse.
The acquisition aligned with broader trends in the footwear industry at the
time, as brands increased their investments in digital sales and NFTs.
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Sponsored
However, the market for NFTs has significantly cooled since 2022. This shift,
along with Nike s renewed focus on physical product innovation and
strengthening relationships with wholesale partners under its new CEO, Elliott
Hill, appears to have influenced the decision.
“This will probably be one of the saddest stories from the NFT space. The
project had so much potential to get into the hands of normies. The fact that
their team never showed up to any events, to hang with the community, I guess
to a degree, this was coming. It s just sad,” web3 investor and
collector Rahim Mahtam wrote on X (formerly Twitter).
In September 2024, Nike excluded the RTFKT logo from its brand lineup in a
press release about Donahoe’s retirement, further signaling a strategic shift.
More Firms are Exiting the Industry
Meanwhile, Nike isn’t alone in pulling back on NFTs. Last week, Kraken
announced the closure of its NFT marketplace to focus on other projects. The
platform halted listing, bidding, and selling features for users.
The NFT decline has continued sharply throughout 2024. Data shows that 98% of
collections generated little or no trading activity , with most losing over
50% of value within days of release.
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Sponsored
In 2024, only 0.2% of NFT projects were profitable, which reflects an
oversaturated and speculative market with limited investor gains. NFT Monthly
Trading Volume from 2023 to 2024. Source: Dune
However, there have been certain developments recently that sparked optimism.
FIFA• Объект организация » Организации по алфавиту » Организации на Фи » ФИФА recently announced its partnership with Mythical Games to launch a new
mobile NFT football• Спорт » Виды спорта » Футбол game . Meanwhile, a wallet linked to Ethereum• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Ethereum co-founder
Vitalik Buterin• Объект человек » Персоналии по алфавиту » Персоналии на Бу » Бутерин, Виталик reportedly minted 400 Patron NFTs last month.
Overall, the NFT market remains in decline. More companies might have to
follow in the footsteps of RTFKT if the industry doesn’t see reviving
engagement.
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