Nike Abandons NFT Market Following Investor Lawsuit - What This Means for Digital Collectibles

Nike just cut its losses and walked away from the NFT space. The sportswear giant's sudden exit follows a class-action lawsuit from investors claiming misleading digital asset promises.

The Legal Backlash

Investors allege Nike overhyped its NFT ecosystem's potential. The lawsuit claims the company painted unrealistic revenue projections for its digital sneaker collections and virtual wearables—then pulled support when adoption lagged.

Market Ripple Effects

Nike's departure sends shockwaves through brand-led NFT projects. Other corporations now face tougher scrutiny over their Web3 roadmaps. The move highlights the gap between corporate experimentation and sustainable digital asset strategies.

The Reality Check

For all the hype about "digital ownership," most brand NFTs still function as glorified loyalty points with extra steps. Nike's retreat exposes the uncomfortable truth: when legal liability enters the chat, corporate metaverse ambitions often exit stage left.

In brief

• Nike quietly sold RTFKT, marking its strategic withdrawal from the NFT market.
• Investors are suing Nike, accusing the brand of destroying the value of RTFKT NFTs.

Nike sells RTFKT: are NFTs no longer popular?

symbolized the digital transition of Nike. Its VIRTUAL sneakers, unique virtual items, and NFTs aimed to attract Web3 investors.

At the time of its acquisition, thewas soaring. Some models exceeded $10,000. Nike then promised immersive digital experiences and personalized quests for digital collection holders.

But the euphoria turned into a downturn. Since 2022, the NFT market has collapsed. Its capitalization dropped from $17 billion to $2.4 billion. Transaction volumes are also falling. Buyers seek more utility and less speculation. Faced with this shift, Nike endedand then sold it quietly.

Without revealing the amount or the buyer, Nike speaks of a new chapter for RTFKT. Behind the scenes, the firm is refocusing on its physical products and traditional channels. A clear strategic shift, led by CEO Elliott Hill!

A class action threatens Nike after the NFT halt

The sale of RTFKT has not calmed tensions. A class action launched by NFT holders accuses Nike of destroyingit had promoted itself. The term “rug pull” frequently appears: a serious accusation in the digital rights world.

The plaintiffs are demanding $5 million. According to them, Nike used its branding to artificially inflate expectations aroundbefore abandoning them. The case could set a precedent, especially regarding marketing commitments related to tokenization.

On its side, Nike continues to(notably through its partnerships with Fortnite and EA Sports). But these projects focus more on gaming than NFTs.

So Nike is not giving up on digital. It is abandoning the speculative NFT model. A strong signal for all brands tempted by the HYPE of Web3 !

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