Nike shuts down RTFKT project

RTFKT, a pioneer in NFT sneakers and digital avatars, has announced its closure in January 2025. Acquired by Nike in 2021, the project became a symbol of the integration of fashion, technology, and Web3. However, declining interest in NFTs and market challenges have led to its end.

Final collection

The digital brand will end its journey on a high note by releasing the MNLTH X and BLADE DROP collection in December 2024, symbolizing its commitment to innovation. Additionally, the company will launch an updated website, which will serve as a virtual museum of its key projects, including collaborations with Takashi Murakami and digital footwear.

How It all began

Founded in 2020, the innovative project quickly became a market leader, attracting investors, including Andreessen Horowitz. In 2021, the company was acquired by Nike to accelerate its digital transformation. Joint projects, such as the sneakers worn by LeBron James in 2023, showcased the successful fusion of fashion and technology.

Since its inception, the creative platform has earned $50 million, of which $45 million came from royalties. However, even such achievements could not shield the company from the consequences of the NFT market decline.

Reasons for closure

According to DefiLlama, NFT sales in 2023 dropped to $9.9 billion, significantly lower than $15.7 billion in 2022 and $23.7 billion in 2021. Amid the downturn, Nike reported a decline in revenue from its NFT division, affecting the valuation of collections, including Clone X.