Nike sells its RTFKT division and says goodbye to virtual sneakers

Nike finalizes the sale of its subsidiary RTFKT, marking a strategic shift that moves the company away from digital collectibles to focus on its traditional sports core.

The craze for the metaverse and digital collectibles, which defined the beginning of the decade, has reached a turning point with the latest move from the sportswear giant. Nike has completed the sale of RTFKTThe digital asset subsidiary, which it acquired with great fanfare in December 2021, quietly closed on December 16, marking the end of a corporate experiment that attempted to merge sneaker culture with blockchain technology. 

This move confirms the change of course under the company's new management, which seeks to retreat to its historical strengths at a time when digital euphoria has given way to financial pragmatism.

The sale was reported initially through the middle The Oregonian and subsequently confirmed by the company itself, although the financial details and the identity of the buyer have been kept strictly confidential. 

For industry analysts, this divestment does not represent a failure of the technology, but a necessary restructuring within the plans of the new CEO. Elliot HillSince taking office in 2024, Hill has prioritized revitalizing relationships with wholesale partners and focusing resources on physical product innovation, putting the Web3 initiatives once led by his predecessor, John Donahoe, on the back burner.

Nike's strategic retreat and new corporate vision

The acquisition of RTFKT four years ago positioned Nike as a pioneering brand at the intersection of fashion and technology. The studio was known for creating virtual sneakers and avatars that reached valuations of thousands of dollars on the secondary market. However, integrating these assets into a traditional corporation's balance sheet proved to be a complex challenge as speculative interest cooled.

A Nike spokesperson stated that this sale opens a new chapter for both the company and the RTFKT community, assuring that the brand will continue to invest in digital experiences, but likely through collaborations on video games and established platforms rather than managing its own tokenized asset issuance house.

This decision aligns with a macroeconomic trend where large corporations are evaluating the true profitability of their digital innovation departments. Despite the sale, the legacy of the collaboration leaves a mark on how mass-market brands understand the digital propertyThe Oregon-based company managed to generate millions in revenue during the boom, but operating costs and the need to maintain a demanding, internet-native community ultimately weighed more heavily in the new administration's strategic balance.

The transformation of the NFT market towards real utility

The context in which this sale takes place is crucial to understanding the decision. The digital collectibles market has suffered a severe contraction, falling from a market capitalization of $17.000 billion in 2022 to approximately $2.400 billion by the end of 2025. However, industry experts point out that this streamlining has been healthy for the industry. 

Developers and creators who remain in the ecosystem are shifting from pure speculation toward creating tangible utility. Today, NFT technology is increasingly used to certify authenticity, offer exclusive access, and create loyalty experiences, moving away from the model of buying and selling static images at exorbitant prices.

The drop in trading volumes on platforms like X2Y2 and the cancellation of events like NFT Paris 2026 reflect this adjustment. However, this doesn't signify the death of the technology, but rather its maturation. While speculators are abandoning ship, the true developers are integrating these assets into video games and everyday applications, seeking use cases that deliver real value to the end user beyond financial appreciation. 

For all these reasons, Nike's departure from RTFKT can be interpreted as the end of the hype cycle and the beginning of a stage where blockchain technology must prove its functional worth in the real economy.

Between innovation and conflict: the lesson of RTFKT

The separation of Nike and RTFKT is not without friction. The company is currently facing a class-action lawsuit filed in April 2025 in a federal court in Brooklyn. The plaintiffs, led by investors who saw the value of their assets plummet, allege that the closure of operations and the lack of continued support constituted significant financial harm. 

The legal argument maintains that Nike's marketing and reputation were central components in the valuation of these assets and that their abrupt removal eliminated much of that perceived value. The lawsuit seeks damages, arguing that the assets functioned as unregistered securities.

Beyond the legal aspect, the RTFKT story has a human and tragic dimension. The community is still processing the death of one of its co-founders. Benoît Pagottowhose creative vision was the initial driving force behind the project. His legacy, according to his partners, will endure in the way the creative industry embraced digital tools. 

Although Nike has decided to move on, RTFKT's influence on digital streetwear culture remains, serving as a case study on the risks and rewards of corporate innovation in emerging and volatile markets.