Lifestyle

Nike Sells RTFKT Digital Collectibles Unit to Unnamed Buyer

Nike has reportedly offloaded its stake in NFT platform RTFKT, which will reportedly continue operations under a new, unnamed owner, according to multiple reports.  “RTFKT transitioned to a new owner on December 17, launching a new chapter for the company and its community,” a Nike spokesperson told Bloomberg. The Oregonian was first to report the news.

The company did not disclose the terms of the sale or the buyer, and the RTFKT (pronounced artifact) website and social channels do not reference continuing or renewed operations.  RTFKT announced it would wind down last year. At the time, the team said they would spin up an archive website to commemorate “everything we created, forged, and built together.”

A “Next Chapter FAQ” only references this archive, noting the “website content will reflect the history of past RTFKT Creator contributions and challenges,” rather than a new owner. The Block reached out to RTFKT representatives. The project, launched independently in 2020 amid an NFT mania, and acquired by Nike about a year later for an undisclosed sum, is arguably among the most successful NFT projects to date. 

It ranks ninth among top NFT projects by lifetime earnings, with over $49 million brought in from its many token drops and royalty sales, according to DeFi Llama. The project has more than two dozen total collections, including collaborations with sneaker designer Jeff Staple and Japanese artist Takashi Murakami, which have recorded around $1.5 billion in trading volume, most of which is generated by the “influential” CloneX series, according to The Block Research data.
“RTFKT revolutionized the sneaker industry by introducing an innovative production model alongside Nike,” the website reads. “By merging digital design capabilities with traditional manufacturing, they created a groundbreaking preorder system that transformed how sneakers are produced and delivered.

 This approach used advanced digital creation techniques, including 3D modeling and digital prototyping, to dramatically streamline the production timeline.” 

Nike acquired RTFKT during ex-CEO John Donahoe’s tenure, which has been characterized by its focus on direct and digital sales. Perhaps unrelated to his decision to back RTFKT, Donahoe is sometimes derided as the “man who made Nike uncool.” The Oregonian notes that Donahoe’s replacement, Elliott Hill, is reportedly focused on reestablishing Nike’s real-world footprint in retail stores like Dick’s Sporting Goods and Foot Locker.

Terron Gold

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