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Nike has discreetly divested its digital products subsidiary RTFKT, the NFT division it acquired during the 2021 cryptocurrency surge, as the company’s Converse brand announced a 30% decline in quarterly sales last December.
The transaction, effective December 16, signifies Nike’s conclusive withdrawal from blockchain-related collectibles and indicates a strategic shift back to its core athletic performance business under the new leadership of CEO Elliott Hill.
The sportswear giant had earlier revealed intentions last year to cease its non-fungible token (NFT) activities along with other blockchain-related projects.
As reported by OregonLive, Nike quietly divested its digital products subsidiary RTFKT in December 2025, having acquired it in 2021. RTFKT had previously disclosed plans to terminate its Web3 services in January 2025. Nike’s Converse brand noted a 30% decrease in quarterly sales in December…
— Wu Blockchain (@WuBlockchain) January 7, 2026
Nike Abandons NFT and Metaverse Aspirations
RTFKT was purchased by Nike in 2021 under the leadership of then-CEO John Donahoe, who emphasized direct and digital sales channels throughout his term, making significant investments in emerging technologies and virtual consumer experiences.
The acquisition aimed to bolster Nike’s footprint in the collectibles and metaverse sectors during the 2020-2021 NFT and digital ecosystem boom, when virtual sneakers and avatars fetched high prices from collectors and crypto aficionados.
In a concise statement, Nike mentioned that the RTFKT sale represented “a new chapter for the company and its community,” adding that it “continues to commit to delivering innovative products and experiences across physical, digital, and virtual realms.”
The carefully crafted announcement allowed for ongoing digital endeavors while distancing the company from its blockchain ventures.
Details regarding the RTFKT sale, including the identity of the buyer and financial specifics, were kept private.
When inquired about the purchaser, Jarlan Perez, Yuga Labs Design Director and former Nike and Google executive, replied enigmatically:
“That’s up to them to reveal themselves whenever they are ready,” implying that the buyer could be a significant entity in the digital assets arena.
In spite of the uncertain outlook, RTFKT tokens surged by over 270% following news of the sale, igniting speculation that new ownership might restore the “lost glory” of NFTs.
Legal Issues Cloud NFT Departure
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Nike is facing increasing legal challenges concerning its sudden exit from digital collectibles, complicating what was already a difficult strategic transition.
Some buyers of Nike-themed NFTs and other crypto assets filed a proposed class action lawsuit in Brooklyn federal court last April, seeking at least $5 million in damages for what they describe as a neglect of promised digital ecosystems.
Lead plaintiff Jagdeep Cheema, an Australian investor, asserts that Nike’s abrupt decision to shut down RTFKT obliterated the NFTs’ value without sufficient notice or compensation.
Nike is facing a $5 million lawsuit from investors alleging its sudden NFT venture shutdown resulted in significant financial losses. #Nike #NFTs https://t.co/QueluJPH7I
— Cryptonews.com (@cryptonews) April 28, 2025
The lawsuit claims breaches of consumer protection laws in New York, California, Florida, and Oregon, with buyers expressing grievances that the company terminated the initiative without any warning or transition strategy.
Some NFTs ceased to display images correctly post-announcement of the shutdown, exacerbating fears that the assets would no longer receive support or maintenance.
The technical issues amplified backlash from collectors who had invested considerable amounts based on Nike’s reputation and implied dedication to the digital domain.
The overall NFT market has plummeted since its peak in April 2022, with over $12 billion erased from its market capitalization according to Coingecko data.
Source: Coingecko
The market is now struggling to achieve $4 million in daily sales volume, a stark decline from the considerable sums RTFKT sneakers, hoodies, and Clone X
avatars commanded during the last crypto summer when digital collectibles were viewed as the future of brand engagement.
Nike Shifts Focus to Athletic Performance
Although the new Nike CEO, Elliott Hill, has not publicly elaborated on his strategic plans for 2026, the RTFKT sale occurs as Nike faces broader challenges, including Converse’s drastic revenue reduction and heightened competition from emerging athletic footwear brands gaining market share.
While Nike asserts it will continue selective virtual collaborations with gaming companies, the sale of RTFKT clearly indicates a shift away from blockchain-based consumer products toward its core strengths in physical, performance-oriented athletic apparel, which has established the brand’s global prominence.
The post Nike Quietly Dumps NFT Unit RTFKT as Converse Revenue Drops 30% appeared first on Cryptonews.
