TL;DR
- Nike sold its NFT division, RTFKT, to an undisclosed buyer in December 2025.
- The sale follows a class-action lawsuit from disappointed collectors.
- Clone-X NFT values have fallen 65% since Nike halted operations in 2024.
Nike completed the sale of RTFKT on December 17, 2025, handing the digital sneaker division to an undisclosed buyer. The company bought RTFKT in 2021 amid NFT mania, aiming to merge virtual collectibles with physical footwear. RTFKT gained attention through Clone-X avatar NFTs and augmented reality sneakers used in metaverse environments.
Operations ceased entirely one year prior. Nike suspended RTFKT’s projects in December 2024 as crypto markets slumped. Collectors watched values plummet while unreleased items gathered digital dust. A class-action lawsuit emerged in 2025, accusing Nike of hiding RTFKT’s instability and misleading buyers about long-term support.
CEO Elliott Hill, leading Nike since 2024, shifted focus sharply toward conventional athletic gear and wholesale partnerships. This pivot followed a 30% drop in Converse sales last quarter. RTFKT’s closure echoed Nike’s earlier shutdown of its. SWOOSH NFT platform, which distributed virtual fan rewards. Both moves signaled retreat from experimental blockchain ventures.
RTFKT collectors now face practical dilemmas
Without Nike’s servers, augmented reality features on their NFT sneakers may stop functioning. Secondary market prices for Clone-X items have fallen 65% since 2024, per OpenSea data. Some owners attempt technical workarounds to preserve functionality, but most lack the expertise to migrate assets independently.
The anonymous buyer fuels speculation across social media. Industry observers note that few entities possess both capital and blockchain experience to revive RTFKT. Previous corporate NFT experiments by Adidas and Puma also collapsed after 2022, leaving digital collectibles stranded in ghost towns of abandoned metaverses.
Nike’s financial rationale appears clear
RTFKT lost $120 million over two years while Nike’s core footwear division grew 8% annually. Hill stated plainly in November 2025: “Innovation must serve the athlete first.” Resources shifted to tangible upgrades like sustainable materials and performance cushioning.
Plaintiffs argue Nike marketed RTFKT as a “permanent bridge between digital and physical worlds” without disclosing risks. Nike counters that user agreements labeled projects experimental. Legal experts suggest a plaintiff victory might force stricter disclosures industry-wide.
Physical-digital collectible sales dropped 42% in 2025, according to DappRadar. Only utility-focused projects—like blockchain tickets for live events—show resilience. Speculative avatar markets continue bleeding value.
For Nike, the RTFKT sale closes a costly chapter. The buyer inherits technology, intellectual property, and a disillusioned community. Success would require rebuilding trust while navigating unclear regulations around digital ownership. Failure might cement RTFKT as a cautionary tale about hype overriding practical design.
Hill’s leadership prioritizes reliability over experimentation
When asked about virtual fashion at a December investor meeting, he replied: “We build products for real courts, tracks, and streets.” This philosophy now defines Nike’s direction. Digital initiatives must prove concrete value before revival.
The RTFKT transaction reflects a maturing market. Brands no longer chase viral NFT launches but demand sustainable models. Collectors increasingly value functional digital items over speculative JPEGs. As one former RTFKT holder wrote online: “I bought shoes I could wear. Now I own museum pieces.”
Nike’s exit doesn’t kill digital fashion—it resets expectations. Future projects will likely tie virtual items to physical product purchases, avoiding standalone speculation. The industry watches whether RTFKT’s new owner revives its technology responsibly or becomes another footnote in crypto’s correction cycle. One truth endures: virtual products require real-world utility to survive beyond hype cycles.
