Nike sells RTFKT as NFT market collapses
Nike confirmed it sold its digital-products studio RTFKT in December, ending direct ownership of the NFT and virtual-sneaker unit after roughly a year of idled blockchain-collectible operations. The buyer and sale price were not disclosed. Nike acquired RTFKT in late 2021 to expand into digital goods and NFTs, but weakening demand and a sector-wide contraction in NFT markets prompted the divestiture. The RTFKT shutdown announced in late 2024 led to legal fallout, including a class-action suit alleging investor losses; Nike says it will continue to invest in physical, digital and virtual experiences through partnerships with gaming companies rather than owning the studio outright. For crypto traders: the sale signals further consolidation and decreased corporate appetite for NFTs, reinforcing weak fundamentals for NFT-linked assets and market segments tied to branded digital collectibles.
Bearish
The sale of RTFKT by Nike, a high-profile corporate backer, is a negative signal for NFT-linked assets and branded digital collectibles. It confirms shrinking institutional demand and corporate retrenchment after the 2021–2022 NFT boom. Short-term impact: increased selling pressure and lower liquidity in NFT marketplaces and secondary markets for branded collectibles, as traders reprice expectations and reduce exposure to such tokens. Long-term impact: continued consolidation of the NFT sector, with only projects that demonstrate clear utility, gaming integration, or strong community economics likely to retain value. For traders, this suggests caution on NFTs and related tokens — reduced likelihood of rapid recoveries for speculative NFT plays and greater emphasis on assets with utility (e.g., gaming tokens tied to active user bases). The lack of disclosed buyer or price adds uncertainty but does not offset the broader negative signal sent by the divestiture.