RTFKT, Nike’s NFT Division, to Close After Launching Final Collection

Nike-owned NFT studio RTFKT has announced that it will wind down its operations by January 2025, marking the end of a chapter for one of the most prominent names in the NFT and digital collectibles space. The studio plans to release its final collection, titled “BLADE DROP”, which will be a tribute to its innovative contributions to the intersection of technology and culture. The announcement, made on December 2, hinted that RTFKT’s departure from active operations will not be the end of its legacy but rather a transition to becoming “an artifact of cultural revolution.” This marks a symbolic shift for the studio, which became a leader in the NFT space in a relatively short period.

RTFKT, founded in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, rapidly gained prominence due to its unique approach to merging fashion, technology, and blockchain, creating innovative virtual wearables and digital assets in the form of NFTs. Some of its most notable collections include CloneX and MNLTH, which were both Ethereum-based NFT projects that gained significant traction within the crypto and digital art communities. Over time, these projects garnered a loyal following and generated substantial royalties—over $45 million—making RTFKT one of the most successful NFT creators before its acquisition by Nike in 2021. Since then, the studio has worked to integrate Nike’s broader metaverse strategy, though the specifics of that vision are still unfolding.

While the exact reasons for RTFKT’s shutdown were not disclosed, the timing of the announcement seems curious. The NFT market, after experiencing a significant lull from the peak of 2021-2022, has shown signs of recovery recently. In November 2024, total NFT sales hit a six-month high of $561.9 million, suggesting that interest in digital collectibles is once again on the rise. However, the broader market’s prolonged decline, especially in the wake of the boom years, could have contributed to RTFKT’s decision. Many NFT creators and platforms have been struggling with the long-lasting effects of the market crash, and it is possible that RTFKT’s leadership felt the need to pivot, even if it means stepping back from active operations.

In the wake of this transition, RTFKT plans to launch an updated website, which will showcase its legacy and the groundbreaking work the studio has done. However, details surrounding how the website will operate—whether it will include tools for collectors to interact with their NFTs, or provide ongoing support for existing NFT holders—remain unclear. This leaves many questions unanswered, particularly regarding how the future of RTFKT’s CloneX and MNLTH collections will be handled, and what impact the shutdown will have on the ongoing royalties associated with these NFTs.

Despite the uncertainty about its operational future, RTFKT’s legacy in the NFT space is undeniable. The studio raised $8 million in initial funding from prominent investors like Andreessen Horowitz, which played a key role in the studio’s rapid expansion and eventual acquisition by Nike. The studio’s digital wearables and virtual fashion items have shaped how many in the NFT space view the potential for NFTs to serve as more than just digital art, but as functional, wearable, and tradable assets that can be tied to real-world fashion and culture.

Nike’s role in the shutdown has yet to be fully explained. Given that the company acquired RTFKT in December 2021, it remains to be seen how this move fits into Nike’s overall metaverse strategy. While Nike has been relatively quiet about how it plans to leverage RTFKT’s innovations within its own operations, the closure of the studio may signal a shift in direction for Nike’s digital and metaverse initiatives. This also raises the question of whether Nike will take a more direct role in RTFKT’s intellectual property, or if it will abandon the project entirely.

One thing is clear, though: RTFKT’s influence on the NFT market has been significant. Over its short life, the studio generated $49.82 million in total revenue, the bulk of which came from royalties tied to its iconic NFT collections. This is a testament to the immense value that RTFKT brought to the space. The company’s ability to create and sustain value in the form of digital collectibles that people wanted to buy and trade was a key factor in its success.

Although RTFKT’s shutdown might come as a surprise to some, especially as the NFT market shows early signs of revival, it’s also a reminder of the volatile nature of this rapidly evolving space. The coming months will likely reveal more about how RTFKT’s assets, like its highly coveted NFTs, will be handled, and whether Nike plans to integrate those assets into its broader ecosystem.