Nike’s Shift Away from NFTs: A Strategic Move Amidst Challenging Market Conditions
Nike has quietly sold its digital products subsidiary RTFKT, the NFT unit it acquired during the 2021 crypto boom, as the sportswear giant’s Converse brand reported a 30% decline in quarterly sales last December. This move marks Nike’s final exit from blockchain-based collectibles and signals a strategic retreat to its core sports performance business under the new leadership of CEO Elliott Hill.
The sale, effective Dec. 16, comes as no surprise, given Nike’s announcement last year to end its operations with non-fungible tokens (NFT) and other blockchain-based initiatives. According to OregonLive, RTFKT previously announced that it would shut down its Web3 services in January 2025. The decision to sell RTFKT is seen as a calculated move to focus on Nike’s core competencies in physical, performance-oriented sportswear.
Nike’s NFT Ambitions: A Brief History
RTFKT was acquired by Nike in 2021 under then-CEO John Donahoe, who prioritized direct and digital sales channels and relied heavily on new technologies and virtual consumer experiences during his tenure. The acquisition was intended to expand Nike’s presence in the collectibles and metaverse markets during the 2020-2021 NFT and digital worlds bubble, when virtual sneakers and avatars fetched top prices among collectors and crypto enthusiasts.
In a brief statement, Nike said the RTFKT sale “opens a new chapter for the company and its community,” adding that the company “continues to invest in delivering innovative products and experiences across physical, digital and virtual environments.” The carefully worded announcement left room for further digital initiatives while distancing the company from its blockchain experiments.
Legal Troubles Shadow NFT Exit
Nike is facing increasing legal pressure over its abrupt departure from digital collectibles, further complicating an already difficult strategic pivot. Some buyers of Nike-themed NFTs and other crypto assets filed a proposed class-action lawsuit in Brooklyn federal court last April, seeking at least $5 million in damages for what they describe as abandonment of promised digital ecosystems.
Lead plaintiff Jagdeep Cheema, an Australian investor, claims Nike’s abrupt decision to shut down RTFKT destroyed the value of the NFTs without adequate notice or compensation. The lawsuit alleges violations of consumer protection laws in New York, California, Florida, and Oregon. Shoppers complained the company pulled the plug without warning or transition plans.
The broader NFT market has collapsed since its peak in April 2022, losing more than $12 billion from its market cap, according to data from Coingecko. The market is now struggling to generate a daily sales volume of $4 million, a dramatic drop from the sizable amounts for RTFKT sneakers, hoodies, and Clone X Avatars dominated during the last crypto summer, when digital collectibles were seen as the future of brand engagement.
Nike Refocuses on Athletic Performance
Although Nike’s new CEO, Elliott Hill, has not publicly outlined his strategic plans for 2026, the RTFKT sale comes as Nike faces broader challenges, including Converse’s significant sales decline and increasing competition from emerging athletic footwear brands seeking market share. While Nike maintains that it will continue selective virtual partnerships with gaming companies, the sale of RTFKT marks a clear shift away from blockchain-based consumer products toward its core competencies in physical, performance-oriented sportswear that have established the brand’s global dominance.
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