Nike has wound down NFT studio RTFKT, Cointelegraph reported on Jan. 7, citing The Oregonian.
Nike acquired RTFKT in 2021 during an NFT boom to strengthen its web3 strategy, but later pulled back as the market contracted and it faced an investor lawsuit.
RTFKT drew attention by introducing NFT-based virtual sneakers and digital wearables, but as the NFT market declined Nike decided in May last year to halt operations. Investors then filed a lawsuit seeking $5 million in damages, claiming a "rug pull" involving a fraudulent withdrawal of the project.
Nike has not officially confirmed a sale, but issued a brief statement saying, "A new chapter has opened for RTFKT and the community." NFT trading volume has plunged from its 2021 peak. Market value also shrank to $2.4 billion from a 2022 high of $17 billion, even as sales rose last year.
Chi-gyu Hwang
delight@d-today.co.kr