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Nike has quietly sold its digital products subsidiary RTFKT, the NFT unit it acquired during the 2021 crypto boom, as the sportswear giant’s Converse brand reported a 30% drop in quarterly sales last December.
The sale, effective December 16, marks Nike’s definitive exit from blockchain-based collectibles and signals a strategic retreat to its core athletic performance business under the new leadership of CEO Elliott Hill.
The sportswear giant had previously announced plans last year to end its non-fungible token (NFT) operations and other blockchain-based initiatives.
Nike Dumps NFT and Metaverse Ambitions
RTFKT was acquired by Nike in 2021 under then-CEO John Donahoe, who prioritized direct and digital sales channels during his tenure, betting heavily on emerging technologies and virtual consumer experiences.
The acquisition was designed to expand Nike’s presence in collectibles and metaverse markets during the 2020-2021 NFT and digital worlds bubble, when virtual sneakers and avatars commanded premium prices from collectors and crypto enthusiasts.
In a brief statement, Nike said the RTFKT sale was “launching a new chapter for the company and its community,” adding that it “continues to invest in delivering innovative products and experiences across physical, digital and virtual environments.”
The carefully worded announcement left room for continued digital initiatives while distancing the company from its blockchain experiments.
Terms of the RTFKT sale, including the buyer’s identity and financial details, were not disclosed.
When asked who purchased the unit, Jarlan Perez, Yuga Labs Design Director and former Nike and Google executive, responded cryptically:
“That’s up to them to reveal themselves whenever they are ready,” suggesting the buyer may be a prominent player in the digital assets space.
Despite the uncertain future, RTFKT tokens surged by over 270% following reports of the sale, sparking speculation that new ownership could revive the “lost glory” of NFTs.
Legal Troubles Shadow NFT Exit
Nike faces mounting legal pressure over its abrupt departure from digital collectibles, complicating what was already a challenging strategic pivot.
Some purchasers of Nike-themed NFTs and other crypto assets filed a proposed class action lawsuit in Brooklyn federal court last April, seeking damages of at least $5 million for what they characterize as an abandonment of promised digital ecosystems.
Lead plaintiff Jagdeep Cheema, an Australian investor, claims that Nike’s abrupt decision to shut down RTFKT wiped out the NFTs’ value without adequate notice or compensation.
The lawsuit alleges violations of consumer protection laws in New York, California, Florida, and Oregon, with buyers complaining the company pulled the plug without warning or transition plans.
Some NFTs stopped displaying images correctly after the shutdown announcement, compounding concerns that the assets would no longer be supported or maintained.
The technical failures intensified backlash from collectors who had invested substantial sums based on Nike’s reputation and implied commitment to the digital space.
The broader NFT market has collapsed since its April 2022 peak, with over $12 billion wiped from its market cap according to Coingecko data.
The market now struggles to generate $4 million in daily sales volume, a dramatic fall from the substantial sums RTFKT sneakers, hoodies, and Clone X
avatars commanded during the last crypto summer when digital collectibles were seen as the future of brand engagement.
Nike Refocuses on Athletic Performance
Although the new Nike CEO, Elliott Hill, has not publicly detailed his 2026 strategic plans, the RTFKT sale comes as Nike navigates broader challenges, including Converse’s significant revenue decline and increased competition from emerging athletic footwear brands capturing market share.
While Nike maintains it will continue selective virtual partnerships with gaming companies, the sale of RTFKT is a clear pivot away from blockchain-based consumer products toward its core competencies in physical, performance-driven athletic wear, which built the brand’s global dominance.
