RTFKT, the virtual fashion and sneaker brand that Nike acquired to the surprise of many in 2021, is shutting down, the company said Monday.
âToday, weâre announcing the plan to wind down RTFKT operations,â the brand said in a statement on X (formerly Twitter). It added that it will launch a website showcasing the brandâs work, and that it expects its web3 services for the brandâs customers will cease functioning by the end of January 2025.
RTFKT was founded in 2020 and rose to prominence during the pandemic crypto boom, releasing virtual-sneaker NFTs that fetched high prices online. The brand, influenced heavily by video games, had grand ambitions of creating an ecosystem of virtual items that linked back together in a vast world-building enterprise.
Nikeâs acquisition of the company in December 2021 marked a major milestone for both the crypto industry and for the sports giant as it signaled its intent to explore the possibilities of NFTs and virtual goods. In November 2022, Nike introduced its own web3 platform, .SWOOSH, influenced in part by RTFKT.
The crash of the NFT market and declining consumer interest in NFTs left many projects struggling. RTFKTâs NFTs have seen their values plummet in line with the decline of the wider industry, even as the brand has maintained a dedicated community of fans online. RTFKT, however, never managed to establish a strong presence among Nikeâs mainstream audience.
Nike, meanwhile, has recently been reassessing priorities under the leadership of new chief executive Elliott Hill as it battles weak sales. Among his top tasks are reviving innovation at the brand and restoring relationships with wholesale partners. The fate of the more experimental endeavours undertaken by his predecessor, John Donahoe, is unclear, but RTFKTâs shutdown could signal that Nike is potentially cutting back on projects that donât serve its core business.
RTFKTâs founders â Benoit Pagotto, Chris Le and Steven Vasilev â all released statements online expressing gratitude to the RTFKT community. âWhat we built together was more than a brand â it was a revolution, thankful forever of every creator, dreamer and builder who made RTFKT possible,â Pagotto wrote.
