It's official! Nike is leaving the world of NFTs. In December, the sports giant sold its subsidiary RTFKT, acquired in 2021 at the top of the Web3 wave. Kept secret, the operation marks a clear disengagement from the world of digital assets.
In brief
- Nike quietly sold RTFKT, marking its strategic withdrawal from the NFT market.
- Investors are suing Nike, accusing the brand of destroying the value of RTFKT NFTs.
Nike sells RTFKT: are NFTs no longer popular?
RTFKT had embodied Nike's digital transition. Its virtual sneakers, unique virtual items and NFTs aimed to attract Web3 investors.
Upon its acquisition, the NFT market flew away. Some models exceeded $10,000. Nike then promised immersive digital experiences and personalized quests for digital collection owners.
But the euphoria turned into a fall. Since 2022, the NFT market has been collapsing. Its capitalization increased from 17 billion to 2.4 billion dollars. Trading volumes are also falling. Buyers are looking for more utility and less speculation. Faced with this change, Nike has put end of RTFK operationsthen sold it silently.
Without revealing the amount or the buyer, Nike evokes a new chapter for RTFKT. Behind the scenes, the firm is refocusing on its physical products and traditional channels. A clear strategic shift, led by CEO Elliott Hill!
Class action threatens Nike after NFT shutdown
There sale of RTFKT did not calm the spirits. A class action launched by NFT holders accuses Nike of having destroyed the value of NFTs which she herself had promoted. The term “rug pull” comes up often: a serious accusation in the world of digital rights.
The plaintiffs are seeking $5 million. According to them, Nike used its branding to artificially inflate expectations around non-fungible tokens before abandoning them. The case could set a precedent, particularly on marketing commitments linked to tokenization.
For its part, Nike continues to experiment in the metaverse (notably via its partnerships with Fortnite and EA Sports). But these projects focus more on gaming than on NFTs.
Nike is therefore not giving up on digital. It abandons the speculative model of NFTs. A strong signal for all brands tempted by the Web3 hype!
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