Nike Leaves The NFT Market After An Investor lawsuit
It’s official! Nike is leaving the world of NFTs. In December, the sports giant sold its subsidiary RTFKT, acquired in 2021 at the peak of the Web3 wave. Kept secret, the operation marks a clear disengagement from the world of digital assets.
In brief
- Nike quietly sold RTFKT, marking its strategic withdrawal from the NFT market.
- Investors are suing Nike, accusing the brand of destroying the value of RTFKT NFTs.
Nike sells RTFKT: are NFTs no longer popular?
RTFKT symbolized the digital transition of Nike. Its virtual sneakers, unique virtual items, and NFTs aimed to attract Web3 investors.
At the time of its acquisition, the NFT market was soaring. Some models exceeded $10,000. Nike then promised immersive digital experiences and personalized quests for digital collection holders.
But the euphoria turned into a downturn. Since 2022, the NFT market has collapsed. Its capitalization dropped from $17 billion to $2.4 billion. Transaction volumes are also falling. Buyers seek more utility and less speculation. Faced with this shift, Nike ended RTFKT operations and then sold it quietly.
Without revealing the amount or the buyer, Nike speaks of a new chapter for RTFKT. Behind the scenes, the firm is refocusing on its physical products and traditional channels. A clear strategic shift, led by CEO Elliott Hill!
A class action threatens Nike after the NFT halt
The sale of RTFKT has not calmed tensions. A class action launched by NFT holders accuses Nike of destroying the value of the NFTs it had promoted itself. The term “rug pull” frequently appears: a serious accusation in the digital rights world.
The plaintiffs are demanding $5 million. According to them, Nike used its branding to artificially inflate expectations around non-fungible tokens before abandoning them. The case could set a precedent, especially regarding marketing commitments related to tokenization.
On its side, Nike continues to experiment in the metaverse (notably through its partnerships with Fortnite and EA Sports). But these projects focus more on gaming than NFTs.
So Nike is not giving up on digital. It is abandoning the speculative NFT model. A strong signal for all brands tempted by the hype of Web3 !
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
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