Nike Offloads NFT and Virtual Sneaker Business Amid Waning Digital Art Market Interest

According to a recent report by The Oregonian, Nike has discreetly sold its non-fungible token subsidiary, RTFKT, approximately one year after ceasing operations. The sale, which took place on December 16, marks a new chapter for the company, as stated by Nike in a recent statement. However, the sportswear giant did not disclose the buyer or the financial terms of the deal. This move is part of a larger trend, as the NFT sector continues to contract after its significant boom in 2021. Other companies, such as NFT marketplace X2Y2 and NFT Paris, have also announced the cessation of their operations due to a sharp decline in trading volumes. Nike acquired RTFKT in late 2021, at the height of the NFT boom, as the company expanded into digital collectibles and blockchain-based products. The studio became a prominent brand in the NFT space, collaborating with artists and releasing digital sneakers that sold for thousands of dollars. In late 2024, Nike announced plans to shutter RTFKT's operations, citing a pullback from NFTs. This decision led to a class-action lawsuit filed in Brooklyn, New York, with investors alleging significant losses. The divestment is part of Nike's CEO Elliott Hill's efforts to refocus the company on its core sports business and rebuild wholesale partnerships.