Nike, the world’s largest athletic footwear and apparel company, has announced plans to shut down its Web3 virtual footwear brand, RTFKT. This decision comes as a surprise to many, given the recent resurgence of interest in cryptocurrency and NFTs.
RTFKT was founded in 2020 by Benoit Pagotto, Steven Vasilev, and Chris Le, and quickly gained popularity for its innovative approach to digital fashion and collectibles. The company’s unique blend of art, technology, and gaming allowed them to create highly sought-after virtual sneakers and other digital assets. RTFKT’s success was evident in their ability to sell out limited edition drops within minutes, while generating millions of dollars in revenue.
In December 2021, Nike acquired RTFKT for an undisclosed sum, estimated to be around $1 billion dollars! This acquisition was seen as a strategic move by Nike to solidify its position in the emerging Web3 space. By acquiring RTFKT, Nike gained access to a talented team of digital artists and technologists, as well as a loyal community of NFT enthusiasts.
Then crypto winter hit in 2022, and NFT’s saw a significant decline in prices and trading volumes, which severely impacted RTFKT’s business. The company faced challenges in maintaining its momentum and attracting new users. Despite these challenges, RTFKT continued to innovate and release new products, such as the Clone X avatar collection and the MNLTH x BLADE DROP. Amazing products weren’t the issue; NFT’s rapid decline in popularity was.
The decision to shut down RTFKT has raised questions about Nike’s long-term commitment to Web3. While the company remains focused on its .Swoosh platform, which offers digital collectibles and virtual experiences, the closure of RTFKT signals a retreat from the more experimental and speculative aspects of the Web3 space. And not that anyone is asking me, but I think the acquisition of RTFKT and everything they dropped since then has been some of the greatest products Nike has ever made since the first Air Jordans dropped in 1985!
The timing of Nike’s decision to shut down RTFKT is particularly perplexing, as the cryptocurrency market has experienced a significant uptick since the presidential election. Many believe that the recent surge in cryptocurrency prices and NFT trading volumes has created a more favorable environment for Web3 businesses.
It is unfortunate to see RTFKT, a company that once embodied the future of digital fashion and collectibles, come to an end. It remains to be seen what the impact of this decision will have on the broader Web3 ecosystem.
