Nike is officially shutting down RTFKT, the virtual sneaker company it acquired in 2021 for around $1 billion, a figure that has been disputed by some as too high. RTFKT was initially purchased during the height of the crypto and NFT boom, when virtual fashion and digital assets seemed poised for mainstream success. At the time, the acquisition was seen as Nike's strategic move into the world of web3, with hopes of capitalizing on the burgeoning NFT and metaverse trends.
However, despite the early buzz and groundbreaking projects such as Clone X with Takashi Murakami and pioneering digital sneakers, RTFKT has struggled to generate sustained mainstream interest. While its community of digital artists and creators did find a niche, the platform never achieved the widespread adoption that many had expected. The hype surrounding NFTs and crypto-based assets began to cool, and RTFKT’s attempt to merge sneaker culture with the digital world failed to captivate beyond a certain circle of enthusiasts.
In its announcement, RTFKT reflected on it’s role in pushing creative boundaries and acknowledged the impact the company had within its niche. Projects such as digital sneakers that later became physical products, as well as its collaborations with prominent figures in the art and fashion world, garnered attention. Despite this, the venture has not been able to reach the mass market in a significant way, with many of its products staying confined to a select group of crypto and sneaker enthusiasts.
Nike's decision to wind down RTFKT signals the end of a high-profile experiment in the virtual sneaker space, with plans to cease its web3 services by the end of January 2025. In closing, RTFKT will release its final innovation this December: the MNLH X featuring the BLADE DROP, a last-ditch effort to showcase its commitment to pushing digital art and product boundaries.
The closure of RTFKT marks a major shift in Nike’s approach to digital innovation, signaling that the future of virtual sneakers and NFTs may not be as clear-cut or mainstream as originally thought.
Credits to Snobette and @doitbigchicago/x for the early reports. Keep your eyes locked onto our official twitter for further updates.
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