Nike sale of RTFKT marks retreat from speculative NFT push

Amid a sustained NFT sector downturn, Nike sale of its RTFKT subsidiary signals a clear step back from the company’s most aggressive web3 experiment.

Nike offloads RTFKT as NFT boom fades

Nike quietly sold its RTFKT non-fungible token studio on Dec. 16, roughly a year after announcing the shutdown of the business, according to The Oregonian. However, the global sportswear group did not disclose the buyer or any financial terms, and it reportedly declined to comment to CoinDesk.

The move ends what was once a high-profile bet on NFT sneakers and digital merchandise. Moreover, Nike described the transaction in an internal statement as “a new chapter for the company and its community,” underlining that it is drawing a line under the dedicated NFT unit.

RTFKT’s rise during the 2021 NFT boom

Nike originally acquired RTFKT in late 2021, right at the peak of the NFT mania, as the brand pushed deeper into digital collectibles, virtual sneakers and blockchain-linked products. The studio, whose name is pronounced “artifact,” quickly became one of the most prominent labels in the NFT ecosystem.

RTFKT collaborated with artists and launched limited-edition digital sneakers that sometimes fetched prices of several thousand dollars. However, as speculative trading cooled and the broader NFT market contraction set in, volumes and hype around such drops began to fade.

From expansion to shutdown and legal backlash

By late 2024, Nike had already signaled a strategic change. In an X post that year, the company announced plans to shutter RTFKT’s operations in late 2024, citing a deliberate pullback from NFTs as a standalone business line. That said, Nike emphasized it would keep pursuing digital and virtual products through collaborations with video game companies.

The decision triggered legal consequences. In April 2025, investors filed a class-action lawsuit in Brooklyn, New York, alleging they suffered significant losses and damages exceeding $5 million linked to RTFKT products and the shutdown. Moreover, the case highlights how fast-changing web3 strategies can expose traditional brands to new categories of risk.

NFT sector pressures and company strategy

Nike’s retreat coincides with a wider NFT sector downturn that has reshaped the industry since the 2021 peak. NFT marketplace X2Y2 recently said it would sunset operations after a steep collapse in trading volumes. In parallel, NFT Paris, once framed as a flagship conference for the space, has canceled its 2026 edition.

In its statement on the RTFKT exit, Nike insisted it “continues to invest in delivering innovative products and experiences across physical, digital and virtual environments.” However, the dedicated NFT studio experiment has clearly ended, suggesting a more selective approach to web3 initiatives rather than outright abandonment.

Corporate refocus under CEO Elliott Hill

The divestment also fits into a broader nike corporate refocus under CEO Elliott Hill, who took over in 2024. Since then, he has prioritized reinforcing Nike’s core sports performance franchises, while rebuilding wholesale partnerships that historically powered much of the company’s global reach.

Industry observers see the sale as part of a wider nike divestment strategy, trimming non-core experiments while preserving technology and brand equity where it still supports long-term growth. Moreover, the Nike NFT sale of RTFKT shows how quickly big consumer names are recalibrating after the NFT boom-and-bust cycle.

In summary, Nike has exited ownership of RTFKT after acquiring it in late 2021, shutting it down in 2024 and facing a 2025 lawsuit, as the company shifts back toward core sports, wholesale and more cautious digital initiatives.