What happened?

  • The NFT (non-fungible token) project studio RTFKT, under Nike, recently announced that it will cease operations in January 2025. Over the years, RTFKT has launched several popular NFT series, including virtual collectibles like Clone X and MNLTH.

  • According to data from the platform DefiLlama, RTFKT's revenue since its inception has approached $50 million, which includes over $45 million in royalty income.

  • The Web3 community is deeply saddened by RTFKT's cessation of operations, with some even proposing to fund a buyout and revitalize RTFKT.

RTFKT announced it will close operations in January 2025.

The sportswear giant Nike, which acquired the NFT project studio RTFKT in 2021, recently announced that it will cease operations in January 2025.

RTFKT has issued a special announcement stating that it will launch an updated website in the future to showcase important works released since the company's inception. Additionally, before ceasing operations, RTFKT plans to launch its last limited NFT series called BLADE DROP.

RTFKT was founded in 2020 and holds a crucial position in the digital collectibles space, having raised at least $8 million in funding at that time, with investors including the well-known investment firm Andreessen Horowitz.

Over the years, RTFKT has launched several popular NFT series, including virtual collectibles like Clone X and MNLTH, and is considered a pioneer in integrating virtual and physical apparel in the Web3 space. It has also actively collaborated with artists such as Takashi Murakami.

According to data from the platform DefiLlama, RTFKT's revenue since its inception has approached $50 million, which includes over $45 million in royalty income.

In 2021, Nike acquired RTFKT for an undisclosed amount, symbolizing Nike's entry into the Web3 space. The then-brand CEO John Donahoe stated that the acquisition was to accelerate 'Nike's digital transformation' and to provide services at the intersection of sports, creativity, gaming, and culture for athletes and creators.

During this period, Nike and RTFKT collaborated multiple times to develop integrated physical and digital footwear, and even customized sneakers for basketball superstar LeBron James during the 2023 NBA playoffs.

The community is saddened and proposes to fund a buyout and revitalize RTFKT.

Good times are not long-lasting; even with RTFKT's status as a pioneer of the Web3 trend and Nike's backing, the prices of its NFT collections still followed market trends and fell, especially for the blue-chip avatar NFT project 'Clone X', which once set a record high price of over $63,000 in 2022, but now its second-hand market price has dropped to below $1,000, with transaction volumes also showing a downward trend.

The Web3 community is deeply saddened by RTFKT's cessation of operations, with some even proposing to fund a buyout and revitalize RTFKT. Similar to the well-known Pudgy Penguins NFT project, which was revived after being acquired in 2022 due to extended IP, becoming a brand that spans both Web2 and Web3.

After RTFKT ceases operations, Nike will still retain its own digital collectibles platform '.Swoosh', however, according to a recent blog post from the platform, .Swoosh will temporarily not launch new NFT series.

Despite RTFKT closing down, its concept of seamlessly integrating digital collectibles with physical products continues to influence the current fashion and retail market. How its parent company Nike will seek new opportunities in the Web3 space in the future remains a focal point worth watching.

Sources: Decrypt, Cointelegraph

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