Nike-Owned RTFKT Is Winding Down Its Web3 Services After NFT Market Fizzles Out

RTFKT's Sudden Shutdown: What Went Wrong?

The digital fashion space has seen another high-profile casualty.

On 2 December 2024, RTFKT, the digital fashion and Web3 pioneer backed by Nike, announced it was winding down its operations.

The company, known for blending digital fashion with NFTs, made waves in the world of virtual collectibles after it was acquired by Nike in 2021.

Despite its early success, RTFKT’s decline became inevitable as the NFT market lost momentum, leaving the company to reassess its future.

By the end of January 2025, RTFKT's Web3 services will cease, marking the end of an era for the brand, though its past collections will remain accessible.

pic.twitter.com/ySShPa0I7r
— RTFKT (@RTFKT) December 2, 2024
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Why Is RTFKT Shutting Down

RTFKT’s meteoric rise was closely tied to its innovative digital sneakers and partnerships with high-profile artists.

It launched in 2020 amidst the NFT boom, securing collaborations with artists like Takashi Murakami and sneaker designer Jeff Staple.

RTFKT's Collaboration with Takashi Murakami

These drops, including limited-edition virtual shoes and physical collectibles, generated millions of dollars.

However, the digital fashion world has changed, and as interest in NFTs waned, so did RTFKT’s prominence.

Despite its iconic Clone X NFT collection reaching a high floor price of $63,000 in 2022, the market shifted, and Clone X now sells for less than $1,000 on secondary marketplaces.

The NFT Dream That Couldn’t Last

Once heralded as a leader in the intersection of gaming, fashion, and digital art, RTFKT quickly became a sensation, selling $10,000 sneakers and developing a diverse collection of Ethereum-based NFTs.

The initial hype around NFTs and the metaverse, driven by people spending more time online during the pandemic, fuelled its success.

But as interest in digital goods ebbed and broader market conditions soured, RTFKT couldn’t maintain its growth.

Nike’s acquisition in December 2021 was seen as a strategic move to push the brand’s digital transformation.

However, as the NFT market faltered and the public's interest waned, it became clear that the experiment wasn’t sustainable long-term.

In March, BoDoggos NFT co-founder Nick shared a rumour on X suggesting that Nike planned to shut down RTFKT within the year.

Although RTFKT co-founder Steven Vasilev initially denied the claims, recent developments suggest they were accurate.

RTFKT, which was once a shining example of Web3 potential, is now being restructured as a "cultural artifact," a term used in the company’s statement to describe its legacy.

What Will Happen to RTFKT’s Legacy

In an attempt to preserve its innovative past, RTFKT will launch an updated website to showcase its projects.

This move is designed to honour its journey and its role in shaping the Web3 and digital fashion space.

However, the company’s departure from Web3 signifies a shift in how brands are approaching the metaverse and virtual goods.

Before winding down, RTFKT plans to release one last project in December 2024, called “MNLTH X featuring the Blade Drop.”

Specific details about this launch remain scarce, but it’s expected to be a farewell project that continues the brand's tradition of mixing the physical and digital worlds.

The Impact of the NFT Decline on Nike

Nike, which acquired RTFKT for an undisclosed amount in 2021—believed to exceed $1 billion—has yet to comment on how the end of RTFKT’s Web3 services will affect its own ventures in the space.

The company had initially touted RTFKT’s acquisition as a way to accelerate Nike’s entry into the metaverse.

However, with the closure of RTFKT’s Web3 services, Nike’s own virtual creation platform, .Swoosh, will likely become its focal point in the virtual space.

Launched in November 2022, .Swoosh allows Nike to sell digital goods via the Polygon blockchain.

$MATIC JUST IN: Nike Launches .Swoosh Web3 Platform #OnPolygon 👀🔥

The .Swoosh platform is billed as the epicenter for Nike’s digital efforts around Web3. Nike's NFT apparel will be minted on Polygon.#Polygon #Top3 ✊
— WEB3 Market Insight 🇦🇺 (@iftikharpost) November 14, 2022
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While RTFKT’s collapse doesn’t directly affect .Swoosh, it could signal the company’s recalibration in its approach to digital fashion and NFTs.

Is There a Way to Revive RTFKT’s Brand

Despite RTFKT’s shutdown, some in the Web3 community are rallying behind the brand.

Offers of more than $100,000 have surfaced online, with hopeful buyers eager to revitalise RTFKT in the same way Luca Netz revived the Pudgy Penguins NFT collection.

While the future of the brand remains uncertain, the idea of a ‘Luca Netz moment’ continues to spark conversation.

The Web3 space, known for its unpredictability, has shown that with the right move, a once-dying project can be resurrected, though it remains to be seen whether RTFKT can undergo such a transformation.

RTFKT’s closure marks a significant shift in the landscape of digital fashion and NFTs.

What seemed like a promising future for digital collectibles and virtual goods has faced a harsh reality check.

For Nike, this may just be the beginning of a new chapter, as it recalibrates its strategy in the metaverse.

However, for RTFKT, its digital footprint will remain, preserved as a relic of a cultural movement that once captivated the world.