Nike is shutting down Rtfkt, its metaverse fashion company known for digital sneakers and NFTs. In January 2025, Rtfkt will release one final collection, Blade Drop . The company itself announced the news via X (formerly Twitter).

The Blade Drop collection serves as a tribute to Rtfkt’s contribution to connecting technology and culture. According to the company, the closure does not mark an end, but a transition to a new role as “A symbol of a cultural revolution.” A website will be launched to preserve Rtfkt’s legacy, but details on functionality or support for existing NFT holders are not yet known.

The Nike x Rtfkt Success Story

Founded in 2020, Rtfkt grew rapidly during the peak of the NFT market in 2021 and 2022. The company generated total revenue of 49.82 million dollars (approximately 46.5 million euros), of which more than 45 million dollars (approximately 42 million euros) came from royalties. At its peak, Rtfkt sold 3.1 million dollars worth of virtual sneakers, developed in collaboration with artist Fewocious, in seven minutes. It also partnered with Dutch digital fashion house The Fabricant, selling out its collection in just 15 minutes.

In December 2021, Nike acquired Rtfkt. For the acquisition, Rtfkt raised 8 million dollars (approximately 6.7 million euros) from investors, including Andreessen Horowitz. Nike did not disclose the acquisition price.

Rtfkt has played a major role in launching Nike’s successful NFT collections like CloneX and MNLTH, which have collectively generated over 30 million dollars (around 28 million euros) in royalties. However, tech journalists have reported that interest in digital assets has waned since 2022. At the same time, the appointment of Elliott Hill as Nike’s new CEO signals a renewed focus, with the company putting more emphasis on physical product innovations and strengthening relationships with wholesale partners.

How the closure of Rtfkt fits into Nike's broader metaverse strategy remains unclear. What is clear is that Nike is closing a chapter in its digital experiments with this move.

This article originally appeared on FashionUnited.NL, translated and edited to English.

It was translated using an AI tool called Gemini 1.5. .