NFT project RTFKT, acquired by Nike in 2021, will cease operations by the end of January 2025. Existing tokens will remain in circulation.

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— RTFKT (@RTFKT) December 2, 2024

RTFKT, known for creating digital collectibles for metaverses, gained a reputation as a promising startup before its acquisition. During the NFT and virtual world boom, the studio collaborated with prominent brands and figures, including Nike, sneaker designer Jeff Staple, and Japanese artist Takashi Murakami.

In 2021, RTFKT raised $8 million in a seed funding round led by Andreessen Horowitz. Nike’s acquisition aimed to strengthen its presence in the metaverse sector. As part of Nike, RTFKT launched several NFT collections and transformed digital sneakers into physical products under its brand.

According to DeFi Llama, RTFKT’s total NFT sales revenue reached $49.8 million, with $45.7 million attributed to royalties. The studio’s most successful collection, CLONE X, created in collaboration with Murakami, generated $119 million in lifetime sales, including $37.8 million in royalties.

Despite its successes, RTFKT couldn’t sustain its momentum. Industry observers speculate that declining NFT demand played a role in its closure.

A Changing NFT Landscape

In September, NFT Evening reported that 96% of minted NFTs were effectively dead, reflecting a significant contraction in the sector.

RTFKT’s shutdown highlights the evolving NFT market and the challenges projects face in maintaining long-term relevance, even with backing from industry giants like Nike.