RTFKT, the creator of non-fungible token (NFT) sneakers and avatars acquired by Nike in 2021, has announced its closure.
In a Dec. 2 post on X, the company announced that it will wind down its operations by January 2025.
Final collection and legacy tribute
“Today, we are announcing plans to wind down RTFKT’s operations,” the post said. “Looking back, we are incredibly proud of everything we accomplished together.”
RTFKT also outlined plans to release MNLTH X, the final collection featuring BLADE DROP before its closure, in December. The team described the move as a testament to the company's dedication to innovation and the convergence of the physical and digital realms.
Reflecting on its achievements, the company highlighted its role at the forefront of digital culture, pioneering the integration of sneaker lifestyle, gaming, digital fashion and Web3 technology.
The statement also highlighted the company's key contributions, including its Clone
In keeping with that tradition, the company announced plans to launch an updated website showcasing its most impactful projects.
The rise and fall of RTFKT
Founded in 2020, RTFKT quickly rose to prominence, raising at least $8 million from investors including Andreessen Horowitz. Nike took over in December 2021, and then-CEO John Donahoe described the move as critical to accelerating the sporting goods maker's digital transformation.
The two companies have since partnered on various sneaker collections, including creating a custom design that NBA superstar LeBron James will wear during the 2023 playoffs.
According to DefiLlama data, RTFKT's total revenue has reached nearly $50 million, including $45 million in royalties, ranking it 9th among NFT projects. The most successful collections included the MNLTH drop and CloneX Mintvial drop, which generated $16.4 million and $13.9 million in royalties, respectively.
However, as the overall market cooled, challenges emerged. 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, according to CryptoSlam data.
A Reuters report in June revealed that Nike was forecasting a decline in financial revenue for its NFT division, citing a decline in demand. Notably, the valuation of Clone X, RTFKT's flagship profile picture (PFP) collection, also dropped significantly. All of these factors ultimately led to the closure announced Monday.
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