Nike-owned NFT wearables startup RTFKT is winding down

RTFKT, the NFT project most known for its attempt at making “digital shoes” a thing, is shutting down, according to a statement on Monday. The project, acquired by athletic wear juggernaut Nike in 2021 for an undisclosed sum, plans to fully unwind by the end of January, though its Ethereum-based tokens will remain accessible. 

“Today, we're announcing the plan to wind down RTFKT operations,” RTFKT (pronounced “artifact”) said in a statement on X. “To honor and preserve this pioneering legacy, we will be launching an updated website that showcases the groundbreaking work that defined the RTFKT journey.”

Launched in 2020 amid the beginnings of the mania around NFTs and the metaverse, RTFKT quickly garnered a reputation as a fast-moving startup. It spun up “drops” with brands, including Nike, and collaborated with the likes of sneaker designer Jeff Staple and Japanese artist Takashi Murakami.

It was a period of time when most people were stuck at home amid a global pandemic, leaving them with idle time to participate in the so-called metaverse. However, in the years since, many have lost interest in using digital accompaniments to augment reality and represent themselves in shared virtual spaces. 

Nike, which has not publicly commented on the shutdown as of press time, purchased RTFKT to expand its presence in the metaverse. In June, the company forecasted a drop in fiscal revenue for the coming year, citing faltering demand. The Verge reported in September that Nike did not include RTFKT’s logo alongside its Swoosh and Jordan Jumpman symbols in an announcement that John Donahoe — the “man who made Nike uncool,” and who elevated RTFKT — was stepping down as CEO. 

At the time of Nike’s acquisition, RTFKT had already raised $9.42 million from investors, including Andreessen Horowitz, and was valued at $33.3 million. 

Some sneaker aficionados consider RTFKT-branded shoes manufactured by Nike to be collector’s items. At RFTFK’s peak, sneaker analyst Chris Burns described RTFKT as "influential."

RTFKT is ranked ninth among NFT projects by NFT earnings, according to DeFiLlama . It has brought in nearly $50 million in total lifetime earnings and over $45 million in royalties. The project has more than two dozen total collections, which generated around $1.5 billion in trading volume, most of which is generated by its most successful drop, CloneX, according to The Block Research data . 

Earlier this year, crypto-celeb Nick O'Neill, the founder of Bodoggos NFTs and known by his catchphrase “choose rich,”  started   a rumor  that Nike was jettisoning RFTFK after posting a  video stating the same.

According to its statement, RTFKT plans to release an additional drop before winding down in a “testament to our commitment to pushing boundaries and merging worlds."