Nike's virtual sneaker company RTFKT has announced plans to scale back its operations as the broader market for digital assets continues to face challenges.
RTFKT announced in a post on X that it will end its Web3 activities by January 2025. To preserve its heritage, the company plans to launch a new website showcasing past projects.
The digital fashion and collectibles company is set to release a final product drop this month called MNLTH X, which features a blade drop.
Founded in 2020, RTFKT quickly rose to fame by revolutionizing the way people interact with fashion and digital assets.
The company gained widespread attention for creating the first-ever digital sneaker, which combined the virtual world of collectibles with real-world fashion, and then turned it into a physical product.
In December 2021, the company's acquisition by Nike became a hot topic. The acquisition was part of Nike's strategy to enter the metaverse and capitalize on the growing popularity of virtual goods and NFTs.
Crypto community questions regarding RTFKT termination
The announcement of RTFKT’s closure caused widespread concern within the cryptocurrency community. Many people have expressed confusion over the company's decision to close.
Swamp Gaming CEO and Founder Michael “TFG” Padilla reacted to RTFKT’s X closure announcement, calling it “wild” given the current bull market. ApeCoin ambassadors questioned the timing of the decision.
Web3 angel investor and collector Rahim Mahtab called the RTFKT move “the saddest story to come from the NFT space.”
Italian NFT artist Federico Clapis also expressed his views on RTFKT's decision to downsize its operations, offering a more positive perspective.
“I think this is a bold choice. We could have just let the project disappear without saying a word, but with this post we are putting an end to a great project of history and archeology.” Clapis wrote about X.
Have NFTs lost their appeal?
The NFT market will see a significant decline in 2024 as both established companies and emerging ventures find it difficult to maintain interest and demand. Similar to RTFKT, other platforms have also decided to shut down their NFT marketplaces.
Cryptocurrency exchange platform Kraken announced in November that it would only allow users to withdraw their tokens for a few months before completely shutting down in February 2025.
However, recent developments in the NFT space have sparked renewed optimism despite the market's continued struggles. FIFA has partnered with Mythical Games to launch FIFA Rivals, a mobile NFT soccer game scheduled for release in mid-2025.
Additionally, a wallet associated with Ethereum co-founder Vitalik Buterin recently minted 400 Patron NFTs.
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Michaela has no cryptocurrency positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu Cryptocurrency Project. Readers are encouraged to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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