Nike-owned digital fashion brand RTFKT will cease operations by the end of January 2025, transitioning into an archived website to preserve its portfolio of past projects and designs.
Founded in 2020, RTFKT quickly gained prominence by offering virtual sneakers and collectibles as non-fungible tokens (NFTs) for use in the metaverse. Nike acquired the brand in 2021, recognizing the potential of digital fashion. Collaborations included exclusive NFT-based sneakers, such as those worn by basketball icon LeBron James.
Despite RTFKT’s closure, Nike will continue to operate its .Swoosh Web3 platform, which launched its first physical sneaker tied to the platform in October 2023. However, Nike’s focus has shifted toward real-world operations, driven by financial challenges. In Q1 2025, ending August 31, 2024, Nike reported $11.6 billion in revenue, a 10% decrease from the previous year.
RTFKT’s farewell statement on X expressed gratitude to its community, acknowledging their role in shaping the future of creativity and transforming culture. Nike’s strategic pivot, announced in January 2024, included $2 billion in cost cuts and layoffs. In September 2024, Elliott Hill was appointed as Nike’s new President and CEO, succeeding John Donahoe. The closure of RTFKT highlights the declining NFT market, which has also impacted ventures like DraftKings’ Reignmakers fantasy game and NFT marketplace.
