R.I.P. RTFKT - What Really Happened

Nike has quietly sold off RTFKT, the virtual sneaker and digital fashion studio it acquired at the height of the NFT boom in 2021. The sale, which took place in December 2025, marks the end of one of the most high-profile corporate experiments in NFTs and virtual collectibles.

RTFKT (pronounced “artifact”) was once hailed as a pioneer at the intersection of fashion, gaming, and digital culture. Before Nike’s acquisition, the studio made headlines for NFT-based virtual sneakers, collectible avatars, and collaborations that fused digital artistry with streetwear aesthetics. Some pieces even sold for tens of thousands of dollars, and early releases like CloneX drove millions in sales and a passionate community.

But by late 2024 the momentum had faded. Nike announced it would wind down RTFKT’s operations, a shift that came amid a broader decline in the NFT market and after a change in leadership at Nike itself. Under new CEO Elliott Hill — who took the helm in late 2024 with a mandate to refocus the company on its core sports business — the brand began pulling back from speculative digital ventures.

The sale itself was quiet: Nike didn’t disclose the buyer or deal terms, and framed the transition as a “new chapter for the company and its community.” The move follows roughly a year of inactivity from RTFKT, during which the studio’s operations had largely ceased.

RTFKT’s downfall wasn’t just about market conditions. Earlier in 2025, Nike faced a class-action lawsuit from NFT holders who argued that the abrupt shuttering of RTFKT wiped out the value of digital assets they had bought, alleging misleading marketing and consumer harm.

For the creative and tech world, RTFKT’s story holds lessons about the limits of digital speculation, the risks of aligning brand value with nascent asset classes like NFTs, and the challenge of sustaining community-driven projects at corporate scale.

What began as a symbol of futuristic culture became, in part, a cautionary tale about execution, expectations, and where mainstream brands choose to place their bets.