- Last year Nike publicised that it would shut RTFKT after suppressing product releases.
- During the publicisation, the company also mentioned that it would halt NFT production while carrying on partnerships with video game firms on virtual items.
Nike Inc. sold its digital products unit RTFKT last month, around one year after publicising plans to close the business, as per the industry reports. The sale went live on December 16; however, the identity and financial terms of the buyer were not revealed.
Nike had the acquisition of RTFKT in 2021, and the unit has so far publicised that it would terminate its Web3 services in January 2025. The stripping came after a strategic shift under Chief Executive Officer Elliott Hill, who came in charge in late 2024.
RTFKT was bought when the chief executive officer of the firm was John Donahoe as part of setting its foot into digital sales and virtual products. Hill shifted the focus of the firm toward sports, footwear, and wholesale collaborations at the time of his second year leading the organisation.
The RTFKT sale comes with wider questions related to Nike’s portfolio. In December, the Converse brand of the company noted around a 30% sales decline in the 4th quarter of the last year, encouraging analysts to discuss the probability of a brand sale; however, Nike hasn’t given any official confirmation about the same.
The Decline in the Industry Events of NFTs
Last year Nike publicised that it would shut RTFKT after suppressing product releases. During the publicisation, the company also mentioned that it would halt NFT production while carrying on partnerships with video game firms on virtual items, adding in-game wearables.
Many prominent NFT platforms have made changes to their business models at the time of market weakness. OpenSea has also planned to shift from an NFT-exclusive aim to a wider trading model including tokens, collectibles and physical goods.
X2Y2 shut its NFT operations and moved towards artificial intelligence. At the same time, Rarible rolled out a new trader reward system after referring to previous models as unsustainable. All these steps have also led to a declination in industry events.
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