Nike Quietly Dumps NFT Unit RTFKT as Converse Revenue Drops 30%
Nike has quietly offered its digital merchandise subsidiary RTFKT, the NFT unit it acquired during the 2021 crypto boom, as the sportswear large’s Converse model reported a 30% drop in quarterly gross sales final December.
The sale, efficient December 16, marks Nike’s definitive exit from blockchain-based collectibles and alerts a strategic retreat to its core athletic efficiency enterprise below the brand new management of CEO Elliott Hill.
The sportswear large had beforehand announced plans final 12 months to finish its non-fungible token (NFT) operations and different blockchain-based initiatives.
Nike Dumps NFT and Metaverse Ambitions
RTFKT was acquired by Nike in 2021 below then-CEO John Donahoe, who prioritized direct and digital gross sales channels throughout his tenure, betting closely on rising applied sciences and digital client experiences.
The acquisition was designed to broaden Nike’s presence in collectibles and metaverse markets through the 2020-2021 NFT and digital worlds bubble, when digital sneakers and avatars commanded premium costs from collectors and crypto lovers.
In a short statement, Nike stated the RTFKT sale was “launching a brand new chapter for the corporate and its neighborhood,” including that it “continues to spend money on delivering progressive merchandise and experiences throughout bodily, digital and digital environments.”
The rigorously worded announcement left room for continued digital initiatives whereas distancing the corporate from its blockchain experiments.
Terms of the RTFKT sale, together with the client’s identification and monetary particulars, weren’t disclosed.
When requested who bought the unit, Jarlan Perez, Yuga Labs Design Director and former Nike and Google govt, responded cryptically:
“That’s as much as them to disclose themselves at any time when they’re prepared,” suggesting the client could also be a outstanding participant within the digital property area.
Despite the unsure future, RTFKT tokens surged by over 270% following stories of the sale, sparking hypothesis that new possession may revive the “misplaced glory” of NFTs.
Legal Troubles Shadow NFT Exit
Nike faces mounting authorized stress over its abrupt departure from digital collectibles, complicating what was already a difficult strategic pivot.
Some purchasers of Nike-themed NFTs and different crypto property filed a proposed class motion lawsuit in Brooklyn federal courtroom final April, searching for damages of no less than $5 million for what they characterize as an abandonment of promised digital ecosystems.
Lead plaintiff Jagdeep Cheema, an Australian investor, claims that Nike’s abrupt choice to close down RTFKT worn out the NFTs’ worth with out sufficient discover or compensation.
Nike faces a $5m lawsuit from buyers claiming its abrupt NFT enterprise shutdown triggered heavy monetary losses.#Nike #NFTshttps://t.co/QueluJPH7I
— Cryptonews.com (@cryptonews) April 28, 2025
The lawsuit alleges violations of client safety legal guidelines in New York, California, Florida, and Oregon, with patrons complaining the corporate pulled the plug with out warning or transition plans.
Some NFTs stopped displaying photographs accurately after the shutdown announcement, compounding issues that the property would not be supported or maintained.
The technical failures intensified backlash from collectors who had invested substantial sums based mostly on Nike’s fame and implied dedication to the digital area.
The broader NFT market has collapsed since its April 2022 peak, with over $12 billion wiped from its market cap in response to Coingecko data.
The market now struggles to generate $4 million in day by day gross sales quantity, a dramatic fall from the substantial sums RTFKT sneakers, hoodies, and Clone X
avatars commanded over the past crypto summer season when digital collectibles have been seen as the way forward for model engagement.
Nike Refocuses on Athletic Performance
Although the brand new Nike CEO, Elliott Hill, has not publicly detailed his 2026 strategic plans, the RTFKT sale comes as Nike navigates broader challenges, together with Converse’s vital income decline and elevated competitors from rising athletic footwear manufacturers capturing market share.
While Nike maintains it’s going to proceed selective digital partnerships with gaming corporations, the sale of RTFKT is a transparent pivot away from blockchain-based client merchandise towards its core competencies in bodily, performance-driven athletic put on, which constructed the model’s international dominance.
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