RTFKT, a prominent designer of virtual sneakers as NFTs and acquired by Nike in 2021, has revealed plans to shut down its operations by January 2025.
On December 2, the company announced its intention to launch a revamped website that will honor the innovative milestones that defined its journey.
Final Collection and Transformation
In conjunction with this announcement, RTFKT is set to release a final collection called “BLADE DROP.” This collection will highlight the brand’s commitment to creativity and the convergence of various cultural spheres.
According to RTFKT, this change should be seen not as a termination but as a transformation into a lasting cultural legacy.
Background and Financial Performance
Founded in 2020, RTFKT raised over $8 million from numerous investors, including the renowned venture capital firm Andreessen Horowitz.
The acquisition by Nike in December 2021, coinciding with the peak of the NFT craze, was a strategic move aimed at enhancing the company’s presence in the metaverse.
This initiative focuses on connecting athletes and creators at the intersection of sports, creativity, and gaming culture.
Attempts to gather comments from Nike were unsuccessful.
A statement from June suggested that Nike expects a decline in fiscal revenue for the coming year, attributing this forecast to waning demand for its sneaker offerings.
Market Trends and Sales Data
Since its inception, RTFKT has made nearly $50 million in revenue, with over $45 million generated from royalties alone, positioning the company as a leading player in the NFT market, according to DefiLlama.
Notably, its most successful collections—MNLTH and CloneX Mintvial—brought in $16.4 million and $13.9 million in royalties, predominantly during the NFT boom of 2021-2022.
The announcement of RTFKT’s impending closure comes at an interesting time, as NFT sales have seen a remarkable rebound, reaching $562 million in November—the highest levels in six months, according to CryptoSlam data.
Overall, NFT sales for this year are approaching $9.9 billion, surpassing figures from earlier in 2023, though falling short of the $15.7 billion and $23.7 billion sales recorded in 2021 and 2022, respectively.
Source: Cointelegraph
