Nike has quietly sold its digital products subsidiary RTFKT, closing a short but closely watched chapter in big‑brand experiments with NFTs and virtual sneakers. The move signals Nike’s renewed focus on its core athletic business just as the broader Web3 and digital collectibles market continues to cool.
Nike exits RTFKT and NFTs
Nike completed the sale of RTFKT in December 2025, roughly one year after shutting down the unit’s Web3 services. The buyer and financial terms have not been disclosed, and RTFKT is now described as having “transitioned to a new owner” as of mid‑December 2025.
Nike originally acquired RTFKT in 2021, at the height of the NFT boom, positioning it as a flagship play in virtual sneakers, digital wearables, and metaverse collaborations. At the time, RTFKT was barely a year old yet had reached a valuation of $33 million and was generating monthly revenues of around $4.5 million from NFT drops and digital collectibles.
Why Nike walked away from Web3
The sale comes after RTFKT announced plans to end its Web3 services in January 2025, archiving existing content and halting new NFT releases. That decision followed a steep downturn in NFT trading volumes and a wave of consumer fatigue around speculative digital assets.
Under CEO Elliott Hill, Nike has been pushing a back‑to‑basics reset, prioritizing performance product, wholesale partners, and more disciplined spending. Analysts note that challenges elsewhere in the portfolio, including a reported 30% quarterly sales drop for Converse in December 2025, have added pressure for Nike to streamline and refocus.
What changes for RTFKT’s community
For RTFKT’s collectors, the sale formalizes what has effectively been a wind‑down year, with core Web3 functions shuttered and communication shifting to archive mode. A Nike spokesperson said, “RTFKT transitioned to a new owner on December 17, launching a new chapter for the company and its community.”
Legal pressure has also loomed in the background: in April 2025, investors filed a class‑action lawsuit accusing Nike of a “rug pull” when it shut down RTFKT’s Web3 services and allegedly damaged the value of their digital assets. The unresolved questions around rights, utilities, and long‑term support could shape how future digital‑only fashion projects structure their promises to buyers.
What Nike’s retreat means for digital fashion
Even as Nike exits standalone NFT operations, it is not abandoning virtual product entirely and is instead shifting to partnerships and in‑game wearables that do not rely on dedicated Web3 infrastructure. This lets Nike keep its brand in gaming and virtual worlds while avoiding the volatility and regulatory questions tied specifically to NFTs.
For digital fashion and sneaker startups, the sale of RTFKT is a reality check: big‑name backing is no guarantee when market conditions flip and strategy pivots toward profitability and core categories. At the same time, the technology and aesthetics that RTFKT helped popularize—from 3D sneakers to avatar‑ready wearables—are likely to live on in gaming, AR, and brand collabs, even if the pure‑NFT era has passed its peak.
