Nike's RTFKT sale signals shift in strategy amid ongoing investor scrutiny

Nike's RTFKT sale signals shift in strategy amid ongoing investor scrutiny

Nike's divestment of RTFKT, finalized in December 2022, marks a significant retreat from the NFT space amid declining market conditions and a $5 million investor lawsuit.

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In December, Nike transferred ownership of RTFKT, a digital collectibles studio it had acquired during the peak of the NFT boom. The sale reportedly occurred without the disclosure of financial details or the identity of the buyer, following Nike's announcement of RTFKT's operational shutdown. This move is seen as the conclusion of one of the most notable corporate experiments in the NFT space.

Initially purchased in December 2021, RTFKT was intended to bridge the gap between sports, gaming, and culture, gaining notoriety for its NFT-based virtual sneakers and digital wearables. However, as the market declined, Nike ceased operations for RTFKT, leading investors to file a class-action lawsuit claiming they suffered losses due to this shutdown, with demands for $5 million in damages.

Nike has stated that it will continue to invest in digital experiences, highlighting ongoing collaborations with gaming platforms, yet has not confirmed the sale publicly beyond a brief statement indicating a new direction for RTFKT and its community.

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