RTFKT, the NFT brand behind virtual sneakers and digital collectibles acquired by Nike in 2021, has announced it will shut down operations in January 2025.
The company shared the news in a 2 December 2024 post on X, saying that it aims to “honor and preserve this pioneering legacy” with a new website showcasing its work in the NFT space.
Before its closure, RTFKT plans to release one final collection, “BLADE DROP,” which it describes as a testament to its boundary-pushing approach and role in merging technology with culture.
“RTFKT isn’t ending. It’s becoming what it was always meant to be — an Artifact of cultural revolution,” the brand noted.
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RTFKT Made Splashy Debut In 2020
Launched in 2020, RTFKT quickly gained prominence, raising at least $8 million from investors, including Andreessen Horowitz, before Nike acquired it at the height of the NFT boom in December 2021.
The acquisition was part of Nike’s strategy to establish a presence in the metaverse, targeting the intersection of sports, gaming, and digital culture.
Despite its closure, RTFKT leaves a significant legacy, generating nearly $50 million in earnings, including $45 million in royalties, according to DeFiLlama.
Its most successful projects, MNLTH and CloneX Mintvial, contributed $16.4 million and $13.9 million, respectively, with most revenue earned during the NFT surge of 2021-2022.
— RTFKT (@RTFKT) December 2, 2024
The decision to sunset RTFKT comes amid changing market dynamics. Nike recently forecasted a decline in fiscal revenue, citing reduced demand for its products.
Meanwhile, NFT sales have shown signs of recovery, with $562 million recorded in November—marking a six-month high, according to CryptoSlam.
However, 2024’s total NFT sales, nearing $9.9 billion, remain far below the record highs of $15.7 billion in 2021 and $23.7 billion in 2022.
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Kraken Pulls The Plug On NFT Marketplace
Last week, crypto exchange Kraken announced the closure of its NFT marketplace nearly two years after its launch. The company said it aims to allocate resources toward new products and services.
“Clients have been informed of the changes, and our team will support them as they move their NFTs to their Kraken Wallet or a self-custodial wallet of choice,” a Kraken spokesperson said.
The move came amid a sluggish recovery for the NFT market following the 2022 crypto bear market. While cryptocurrencies like Bitcoin have seen substantial rebounds, the NFT sector has struggled to regain its footing.
Notably, the Bitwise Blue-Chip NFT Collections Index has risen 90% since pro-crypto candidate Donald Trump’s presidential victory three weeks ago. However, it remains 81% below its peak in April 2022.
According to an industry report by DappRadar, NFT trading volume reached a yearly low of $471 million in August, a 16% decline from July. NFT trading activity reached $3.9 billion in the first quarter of 2024 from $12.6 billion during the same period of 2022.
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