An overview of the closure of RTFKT
RTFKT, a pioneer in the NFT market that Nike acquired and is well-known for producing virtual trainers and avatars, has declared its intention to shut down by January 2025. In a post on X (previously Twitter) on December 2, the company provided this update, pointing to market difficulties and dwindling demand in the NFT industry in spite of strong historical results.
Last Collection: Bidding Innovation Goodbye
RTFKT disclosed plans for a last release, the MNLTH X Collection, which includes the BLADE DROP, in their farewell statement. The purpose of this collection is to honour the company’s history of bridging the gap between the digital and physical worlds.
RTFKT highlighted its leadership in digital culture when looking back on its path, especially in fusing Web3 technology, sneaker culture, digital fashion, and gaming. Collaborations such as Clone X with artist Takashi Murakami, the development of hybrid digital-physical trainers, and advancements in 3D creativity are among of its most notable accomplishments. RTFKT intends to develop a redesigned website highlighting its most significant accomplishments in order to uphold its legacy.
RTFKT’s Ascent and Impact
RTFKT was established in 2020 and immediately became well-known in the NFT industry, obtaining $8 million in initial funding from companies like as Andreessen Horowitz. John Donahoe, the business’s then-CEO, described the purchase as a crucial phase in Nike’s digital transformation strategy when the company was acquired by Nike in 2021.
NBA player LeBron James wore bespoke sneaker designs throughout the 2023 playoffs, one of the many creative collaborations that came from the agreement. According to DefiLlama, RTFKT made close to $50 million by taking advantage of the NFT boom, of which $45 million came from royalties. Just MNLTH and CloneX Mintvial, two of the top collections, generated $16.4 million and $13.9 million, respectively.
Difficulties in a Cooling NFT Industry
RTFKT encountered difficulties as the NFT market cooled considerably, despite its early success. Global NFT sales have dropped sharply, according to CryptoSlam reports, from $15.7 billion in 2021 and $23.7 billion in 2022 to barely $9.9 billion so far this year in 2023.
Nike also predicted that lower demand would result in lower revenue for its NFT segment. The decision to shut down operations was influenced by the significant declines in the value of RTFKT’s main collection, Clone X.
The Final Phase of Digital Innovation
With the announcement of RTFKT, an important chapter in the NFT and Web3 area comes to a close. The company’s contributions to fashion, technology, and digital culture endure after its demise. RTFKT’s story serves as a warning about market volatility as well as a tribute to ingenuity as the NFT market develops further.
