RTFKT Announces Shutdown Amid NFT Market Decline

The NFT Decline Claims Another Victim

RTFKT, the NFT-based virtual sneaker company acquired by Nike in 2021, has revealed plans to cease operations due to the prolonged downturn in NFTs over the past two years. The company will wrap up its web3 activities by January 2025 but intends to launch a new website to showcase its previous projects.

The final product drop by RTFKT, scheduled for this month, will feature MNLTH X with the Blade Drop—a representation of the company’s innovative fusion of digital and physical experiences. Established in 2020, RTFKT was known for integrating game engines, NFTs, blockchain, and augmented reality. Nike’s acquisition of the company during John Donahoe’s leadership marked a notable entry into digital assets and the metaverse.

However, the declining NFT market, coupled with Nike’s renewed emphasis on physical product innovation and strengthening partnerships with wholesale allies under new CEO Elliott Hill, appears to have influenced RTFKT’s decision to shut down.

More Firms are Exiting the Industry

Nike is not alone in retracting its NFT involvement. Recently, Kraken announced the closure of its NFT marketplace to concentrate on other ventures. The drastic decline in the NFT market throughout 2024 has seen a vast majority of collections exhibit minimal to no trading activity, with most losing over 50% of their value shortly after release.

Only 0.2% of NFT projects were profitable in 2024, underscoring the oversaturation and speculative nature of the market. Although there have been a few positive developments, such as FIFA’s collaboration with Mythical Games for a new mobile NFT football game and Ethereum co-founder Vitalik Buterin’s wallet minting 400 Patron NFTs, overall, the NFT market continues on a downward trajectory.

If engagement in the industry does not see a revival, more companies might follow in the footsteps of RTFKT, highlighting the precarious nature of the NFT market.