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Crypto Potato 2024-12-03 22:41:36

Nike-Owned NFT Project RTFKT to Shut Down Operations in Early 2025

Nike-Owned NFT Project RTFKT to Shut Down Operations in Early 2025

RTFKT, the creators of non-fungible token (NFT) sneakers and avatars acquired by Nike in 2021, has announced its closure. The firm revealed in a December 2 post on X that it will wind down operations by January 2025. Final Collection and Legacy Tribute “Today, we’re announcing the plan to wind down RTFKT operations,” the post stated. “Looking back, we’re incredibly proud of everything we’ve achieved together.” RTFKT also outlined plans to release a final collection in December, the MNLTH X, featuring the BLADE DROP before its closure. The team described this move as a testament to its dedication to innovation and the merging of physical and digital realms. Reflecting on its achievements, the company highlighted its role at the forefront of digital culture, pioneering the integration of the sneaker lifestyle, gaming, digital fashion, and Web3 technology. The statement also highlighted its major contributions, including the Clone X collaboration with renowned artist Takashi Murakami, the development of digital footwear that transformed into physical products, and its support for 3D artists and digital creators. To preserve its legacy, the company announced plans to launch an updated website to showcase its most impactful projects. RTFKT’s Rise and Fall Founded in 2020, RTFKT quickly rose to prominence, raising at least $8 million from investors like Andreessen Horowitz. In December 2021, Nike took it over , with then-CEO John Donahoe describing the move as pivotal to accelerating the sports gear maker’s digital transformation. The two companies then partnered on various sneaker collections, even creating custom designs worn by NBA superstar LeBron James during the 2023 playoffs. According to DefiLlama data , the RTFKT’s total earnings reached nearly $50 million, including $45 million in royalties, ranking it ninth among NFT projects. Its most successful collections included the MNLTH and CloneX Mintvial drops, which generated $16.4 million and $13.9 million in royalties, respectively. However, challenges emerged as the broader market cooled. CryptoSlam data shows that year-to-date NFT sales have reached $9.9 billion, significantly lower than the $15.7 billion and $23.7 billion recorded in 2021 and 2022. In June, a Reuters report revealed that Nike had projected a decline in fiscal revenue for its NFT division, citing decreased demand. Notably, Clone X, RTFKT’s flagship profile picture (PFP) collection, also saw significant drops in valuation. All these factors ultimately resulted in the closure announced on Monday. The post Nike-Owned NFT Project RTFKT to Shut Down Operations in Early 2025 appeared first on CryptoPotato .

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