Nike has reportedly sold its NFT and virtual products subsidiary RTFKT, marking a full exit from one of its most ambitious Web3 initiatives as interest in digital collectibles continues to decline.
According to reports, the transaction was completed quietly in December 2025, with neither the buyer nor the financial terms disclosed. The move underscores how sharply sentiment around NFTs and digital art has shifted since the market’s peak in 2021.
Nike’s exit comes amid a prolonged contraction in the NFT sector. Trading volumes, speculative demand, and mainstream engagement have fallen significantly over the past two years, eroding the commercial case for large consumer brands to maintain in-house digital collectible studios.
RTFKT, which Nike acquired in 2021 during the height of the NFT boom, was once positioned as a bridge between streetwear culture, virtual fashion, and blockchain-based ownership. However, as market liquidity dried up and user interest waned, the long-term viability of the business became increasingly uncertain.
The divestment aligns with a broader strategic shift under Nike’s new CEO, Elliott Hill. Hill has been moving the company away from the tech-driven, direct-to-consumer digital expansion favored by the previous leadership and back toward Nike’s core strengths in sportswear, brand partnerships, and wholesale distribution.
Selling RTFKT fits this recalibration, allowing Nike to streamline operations and reduce exposure to volatile and non-core digital asset markets.
The sale follows Nike’s earlier announcement in late 2024 that RTFKT would wind down operations by January 2025. That decision triggered a class-action lawsuit from investors who alleged the shutdown amounted to a “rug pull,” seeking more than $5 million in damages. While the legal process is ongoing, the quiet sale suggests Nike has opted to fully sever ties with the business rather than attempt a revival.
Despite exiting RTFKT, Nike has indicated it is not abandoning digital experiences entirely. Instead, the company plans to focus on collaborations within established ecosystems, particularly through partnerships with major gaming platforms such as NBA 2K and Fortnite.
This approach allows Nike to maintain a digital presence without bearing the operational and market risks associated with running its own NFT-native studio.
Nike’s departure from NFTs highlights a wider trend: major consumer brands are reassessing early Web3 bets made during peak hype cycles. As the digital art market matures, or contracts, companies are increasingly favoring lower-risk partnerships over direct ownership of crypto-native businesses.
For now, Nike’s Web3 chapter appears to be closing not with fanfare, but quietly — mirroring the broader cooling of the NFT market itself.
