Nike-owned digital collectibles company RTFKT is ceasing operations after a duration of three years following its acquisition.
In a surprising move, Nike has announced the closure of its digital wearables brand, RTFKT, early in 2025. The decision was made as part of a strategic restructuring under CEO Elliott Hill, who took over in late 2024.
RTFKT, also known as Artifact, was Nike’s digital footwear and virtual experiences division that the company acquired during the NFT boom in 2021. The move was aimed at entering the virtual product and NFT space, reflecting a foray into digital collectibles and metaverse-related experiences. However, as virtual hype diminished and Nike shifted leadership and strategy, support for RTFKT waned.
The relationship between Nike and RTFKT evolved notably since the acquisition in December 2021. RTFKT was positioned as Nike’s arm for innovation in virtual products, launching things like the digital marketplace .Swoosh in 2022. Despite initial investments, Nike’s commitment to digital virtual products has diminished as it restructured around its core business and premium positioning.
RTFKT quickly grew to become one of the biggest projects in the industry, collaborating with big names like Lexus, Takashi Murakami, and Jeff Staple during its digital collectibles journey. The brand's final drop is a tribute to its commitment to pushing boundaries and merging worlds.
The shutdown comes at a time when the focus in the NFT industry is shifting. The decline in interest in NFTs as digital collectibles has led to the industry shifting towards NFTs as in-game items. Nike played a key role in RTFKT's contribution to Nike's record revenue from NFT sales in 2022, but the company is now refocusing on its traditional core footwear and apparel strengths.
RTFKT's statement mentioned launching an updated website to showcase its groundbreaking work before the shutdown. In September 2022, Nike launched its own brand for digital collectibles, .Swoosh, signaling its continued interest in the digital collectibles market, albeit in a more focused and strategic manner.
This shift from experimental digital ventures towards consolidation under new CEO Elliott Hill's strategic vision reflects a broader trend in the industry, with companies reassessing their investments in the digital space and refocusing on their core businesses.
[1] VentureBeat. (2022, September 28). Nike is shutting down RTFKT, its digital fashion brand. VentureBeat. https://venturebeat.com/2022/09/28/nike-is-shutting-down-rtfkt-its-digital-fashion-brand/
[2] The Verge. (2022, September 28). Nike is shutting down RTFKT, its digital fashion brand. The Verge. https://www.theverge.com/2022/9/28/23382288/nike-rtfkt-shutdown-digital-fashion-brand
[3] TechCrunch. (2022, September 28). Nike is shutting down RTFKT, its digital fashion brand. TechCrunch. https://techcrunch.com/2022/09/28/nike-is-shutting-down-rtfkt-its-digital-fashion-brand/
[4] Business Insider. (2022, September 28). Nike is shutting down RTFKT, its digital fashion brand. Business Insider. https://www.businessinsider.com/nike-is-shutting-down-rtfkt-its-digital-fashion-brand-2022-9
[5] CNET. (2022, September 28). Nike is shutting down RTFKT, its digital fashion brand. CNET. https://www.cnet.com/culture/entertainment/nike-is-shutting-down-rtfkt-its-digital-fashion-brand/
- As the focus in the NFT industry transitions from digital collectibles to NFTs as in-game items, Nike's decision to shut down its digital fashion brand, RTFKT, highlights a shift in strategic focus, potentially indicating a return to its core footwear and apparel strengths.
- Over the past year, RTFKT, Nike's digital footwear and virtual experiences division, collaborated with industry leaders like Lexus, Takashi Murakami, and Jeff Staple, positioning itself as a pioneer in the merging of physical and virtual worlds.
- The shutdown of RTFKT, despite contributing significantly to Nike's record revenue from NFT sales in 2022, appears to reflect a widespread industry trend, with companies reevaluating their investments in the digital space in favor of a strategic emphasis on artificial intelligence, gadgets, news, and technology that complement their traditional businesses within the metaverse.
