Nike’s Web3 Exit: Sportswear Giant Sells RTFKT, Abandons NFT Ambitions

Nike just sold its digital collectible studio RTFKT—and with it, the company's entire Web3 strategy. The move signals a complete retreat from the NFT space it once championed.

From Digital Sneakers to Digital Dust

Remember the virtual Air Force 1s? The CryptoKicks? Nike's high-profile plunge into NFTs and digital fashion now looks like a flashy experiment that didn't stick. The RTFKT sale isn't a pivot—it's a full-scale withdrawal.

The Web3 Washout

This exit follows a brutal market correction that turned blue-chip NFTs into illiquid jpegs and vaporized speculative capital. Nike's timing is impeccable—getting out just as the last retail bagholders wonder what they actually bought (spoiler: a receipt on a blockchain).

A Reality Check for Corporate Crypto

When a brand with Nike's marketing muscle walks away, it raises uncomfortable questions. Was Web3 just another limited-edition drop—hype-driven and ultimately disposable? Or does this reflect deeper skepticism about tokenized brand equity?

One cynical take for finance bros: maybe those virtual sneakers had better fundamentals than half the altcoins still listed on exchanges.

The Verdict

Nike's retreat leaves a vacuum in the intersection of sports, fashion, and blockchain. It suggests that for now, building in Web3 remains a speculative bet—even for giants. The playbook for mainstream adoption just got a lot thinner.

Nike ends NFT production after quarterly sales drop shock

Nike had announced on Medium back in September that it would temporarily halt NFT products developed by RTFKT. The company stopped creating blockchain-based collectibles, but insisted that partnerships with video game companies to produce in-game wearables with RTFKT’s design would continue.

CEO Elliott Hill’s second year is seemingly taking the clothing and footwear company away from digital assets and back to traditional sports, athletic products, and rebuilding relationships with partners such as Dick’s Sporting Goods and Foot Locker. 

RTFKT was acquired by Nike in 2021 under former CEO John Donahoe, who backed direct-to-consumer and digital sales channels. The acquisition was meant to expand the sportswear brand’s presence in collectibles and metaverse markets during the 2020-2021 NFTs and digital worlds bubble. 

In a brief statement, Nike confirmed that the sale of RTFKT was effective December 16 and it was “launching a new chapter for the company and its community,” but the buyer and terms of the sale were not disclosed.

“Nike continues to invest in delivering innovative products and experiences in physical, digital, and VIRTUAL environments,” the statement added, which could mean the company intends to continue with its digital footprint despite exiting the NFT-specific market.

Although CEO Hill has not yet publicly detailed his plans for the company in 2026, the sale of RTFKT spells Nike’s return to a much-familiar playbook of athletes and sports performance.

Nike’s financial performance report for the quarter ending November 30 saw the company make $12.4 billion in sales, exceeding Wall Street’s predictions of $12.2 billion. Its earnings per share reached $0.53, well above the $0.37 consensus estimate, but the Converse brand counted a 30% drop in quarterly sales.

RTFKT lawsuit still continues, co-founder’s demise legacy lives on

RTFKT’s co-founder Benoît Pagotto passed away last year at the age of 41, as first reported by Philippe Rodriguez through a LinkedIn post. The founding partner at Avolta Partners, who advised on RTFKT’s sale to Nike in 2021, said Pagotto was “super creative, discreet and humble.” 

Fellow co-founder Steven Vasilev later confirmed Pagotto’s death on X, writing that “the vision, mission, and inspiration he gave to the world will live on forever.” 

Visionary, Genius, Mentor, Friend & Brother

The vision, mission and inspiration @benitopagotto gave to the world will live on forever. ♾️ 👁️‍🗨️

Heartbroken we lost a legend 💔🕊️ pic.twitter.com/Jwn1zBVpK0

— Zaptio RTFKT (@Zaptio) October 12, 2025

Amid the sad news, Nike is still facing a class action suit for abruptly exiting the NFT market. Some purchasers of Nike-themed NFTs and other crypto assets filed a proposed lawsuit in Brooklyn federal court in April last year. 

The plaintiffs were led by Australian resident Jagdeep Cheema, who claimed that Nike’s closure of RTFKT caused the value of their NFTs to collapse, resulting in financial losses. Cheema’s attorneys are seeking “unspecified damages of more than $5 million” for alleged violations of consumer protection laws in New York, California, Florida, and Oregon. 

According to the law filing, the NFTs were unregistered securities sold without approval from the US Securities and Exchange Commission (SEC). The plaintiffs accuse Nike of using “its iconic brand and marketing prowess to hype, promote, and prop up the unregistered securities that RTFKT sold,” much similar to what caused Dapper Labs to settle with investors after issuing NBA Top Shot NFTs in 2023. 

They also claimed to have purchased the NFTs expecting their value would grow, and had the buyers known the assets were unregistered securities, they would not have invested.

The smartest crypto minds already read our newsletter. Want in? Join them.