RTFKT, the NFT brand behind virtual sneakers and digital collectibles acquired by Nike in 2021, announced that it will close its operations in January 2025.
The company shared the news in a 2 December 2024 article on Xsaying he aims to “honor and preserve this pioneering heritage” with a new website showcasing his work in the NFT space.
Before its closure, RTFKT plans to release one final collection, “BLADE DROP,” which it describes as a testament to its boundary-pushing approach and its role in merging technology and culture.
“RTFKT doesn’t stop. It’s becoming what it was always meant to be: an artifact of cultural revolution,” the brand noted.
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RTFKT made a splashy debut in 2020
Launched in 2020, RTFKT quickly rose to prominence, raising at least $8 million from investors including Andreessen Horowitz before Nike acquired it at the height of the NFT boom in December 2021.
The acquisition was part of Nike’s strategy to establish a presence in the metaverse, targeting the intersection of sports, gaming and digital culture.
Despite its closure, RTFKT leaves a significant legacy, generating nearly $50 million in revenue, including $45 million in royalties, according to DeFiLlama.
Its most successful projects, MNLTH and CloneX Mintvial, contributed $16.4 million and $13.9 million, respectively, with most revenue earned during the 2021-2022 NFT push.
-RTFKT (@RTFKT) December 2, 2024
The decision to terminate RTFKT comes amid changing market dynamics. Nike recently forecast a drop in tax revenue, citing a reduction demand for its products.
Meanwhile, NFT sales have shown signs of recovery, with $562 million recorded in November, a six-month high, according to CryptoSlam.
However, total NFT sales in 2024, near $9.9 billion, remain well below the record highs of $15.7 billion in 2021 and $23.7 billion in 2022.
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Kraken ends the NFT market
Last week, crypto exchange Kraken announced the closure of its NFT marketplace almost two years after its launch. The company said it aims to allocate resources to new products and services.
“Customers have been informed of the changes and our team will support them as they move their NFTs to their Kraken wallet or a self-custodial wallet of their choice,” a Kraken spokesperson said.
The move came amid a slow recovery in the NFT market following the crypto bear market of 2022. While cryptocurrencies like Bitcoin have seen substantial rebounds, the NFT sector has struggled to regain ground. It is foot.
Notably, the Bitwise Blue-Chip NFT Collections Index is up 90% since pro-crypto candidate Donald Trump’s presidential victory three weeks ago. However, it remains 81% below its April 2022 peak.
According to an industry report from DappRadar, NFT trading volume reached a yearly low of $471 million in August, a 16% decline from July. NFT trading activity reached $3.9 billion in the first quarter of 2024, up from $12.6 billion during the same period of 2022.
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