RTFKT, a trailblazer in the NFT and virtual wearables space acquired by Nike in 2021, has announced plans to wind down operations in January 2025. Known for its groundbreaking digital sneakers and collectibles, RTFKT shared the news on Dec. 2, signaling the end of an era in the NFT world.

A Legacy Honored with a Final Collection

In a statement on X (formerly Twitter), RTFKT said it plans to launch an updated website to showcase its pioneering work. As part of its farewell, the company will release a final collection called “BLADE DROP.” This collection symbolizes RTFKT’s ethos of pushing boundaries and bridging physical and digital worlds.

The team clarified that RTFKT’s conclusion represents a shift in focus:
“RTFKT isn’t ending. It’s becoming what it was always meant to be — an Artifact of cultural revolution.”

Founded in 2020, RTFKT quickly became a key player in the NFT ecosystem, raising at least $8 million in investment funding, including backing from Andreessen Horowitz. The company gained global attention when Nike acquired it in December 2021 during the height of the NFT craze.

The acquisition aligned with Nike’s strategy to establish a foothold in the metaverse, targeting the convergence of sports, creativity, gaming, and culture.

A Financial Powerhouse in the NFT Space

Since its inception, RTFKT has generated nearly $50 million in earnings, including over $45 million in royalties, according to DefiLlama data. Its two most notable collections, MNLTH and CloneX Mintvial, collectively earned over $30 million in royalties. However, most of these earnings were amassed during the 2021-2022 NFT market peak.

RTFKT’s closure comes amid mixed signals in the NFT market. While November 2024 saw a six-month high in NFT sales, totaling $562 million, the year-to-date tally of $9.9 billion remains significantly below the market highs of 2021 and 2022.

Nike’s Challenges and Future Plans

Nike has yet to comment on RTFKT’s closure. Earlier this year, the sportswear giant reported declining demand for its physical sneakers, contributing to lower revenue forecasts. This reflects broader market challenges as companies reassess their metaverse and NFT strategies in a post-hype environment.

Although RTFKT will sunset its operations, its impact on the NFT and digital fashion industries remains undeniable. By merging cutting-edge technology with cultural relevance, it set a standard for innovation in the metaverse. With its final collection and digital archive, RTFKT aims to leave a lasting impression, inspiring future creators to continue exploring the possibilities of virtual worlds.