In early 2025, Nike-owned NFT project RTFKT will shut down operations.

RTFKT's shutdown follows declining NFT demand and market challenges, despite $50 million in revenue and collections like MNLTH and Clone X.

In the year RTFKT, creators of the Nike Invincible Token (NFT) acquired by Nike in 2021, has announced the closure of sneakers and avatars.

In a statement on Dec. 2, the company announced that it will cease operations by January 2025.

Final collection and old tax

“Today we are announcing plans to eliminate RTFKT operations,” he wrote. “Looking back, we're incredibly proud of everything we've accomplished together.”

RTFKT also revealed plans to release BLADE DROP's final set in December before closing. The group described the move as an affirmation of its commitment to innovation and the integration of physical and digital realms.

Reflecting on its achievements, the company has highlighted its role in digital culture, pioneering the integration of sneaker lifestyle, gaming, digital fashion and Web3 technology.

The statement touted its major contributions, including Clone X's collaboration with renowned artist Takashi Murakami, the development of digital shoes that have been turned into physical products, and its support for 3D artists and digital creators.

To maintain its legacy, the company announced plans to launch a revamped website to showcase its high-impact projects.

The rise and fall of RTFKT

In the year Founded in 2020, RTFKT quickly gained popularity by raising at least $8 million from investors such as Andreessen Horowitz. In the year Nike took over in December 2021, with current CEO John Donahoe describing the move as critical to accelerating the sports gear maker's digital transformation.

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The two companies have collaborated on various sneaker collections, creating custom designs to be worn by NBA superstar LeBron James during the 2023 season.

According to Defillama data, RTFKT's total revenue is nearly $50 million, including $45 million in royalties, ranking ninth among NFT projects. Its most successful collections include the MNLTH and CloneX Mintvial drops, which generated $16.4 million and $13.9 million in royalties, respectively.

But when the broader market cooled, challenges came. According to CryptoSlam data, NFT sales reached $9.9 billion year-over-year, which is significantly lower than the $15.7 billion and $23.7 billion recorded in 2021 and 2022, respectively.

In June, a Reuters report indicated that Nike had forecast a cut in fiscal revenue for its NFT division, citing a drop in demand. Notably, Clone X, RTFKT's flagship profile picture (PFP) collection, has also seen significant drops in reviews. All of these factors ultimately led to the closure announced on Monday.