Nike Sells RTFKT Amid NFT Market Decline

Nike Inc. has made the decision to sell its digital products unit, RTFKT, in December 2025. This move comes roughly one year after the company announced plans to cease the operations of the business, as reported by industry sources.

Key Takeaways

Nike sold its digital unit RTFKT in December 2025 due to shifts in market focus.
The sale comes as the NFT market experiences a significant downturn, with a 67% drop in market capitalization.
Analysts speculate about the future of Nike's Converse brand amid a 30% sales decline.
Major NFT platforms are adjusting their business models to adapt to market conditions.
Upcoming industry events have seen cancellations due to market instability.

Nike exits RTFKT as NFT market slumps and platforms pivot.

The sale was finalized on December 16, but details regarding the buyer and the financial terms remain undisclosed. Nike initially acquired RTFKT in 2021, and the unit had announced its intention to end Web3 services in January 2025.

This divestiture aligns with a strategic shift implemented by Chief Executive Officer Elliott Hill, who took on the role in late 2024. RTFKT was acquired during the leadership of former CEO John Donahoe, who aimed to expand into the digital sales and virtual product market. Under Hill's guidance, the company is now focusing primarily on sports, footwear, and wholesale partnerships in its second year of leadership.

Concerns Arise Over Potential Rugpulls Following RTFKT Sale

The sale of RTFKT raises questions about the overall health of Nike's portfolio. In December, the company's Converse brand reported a troubling sales decline of approximately 30% in the fourth quarter of 2025. This decline has led analysts to speculate about the potential sale of the brand, although Nike has not confirmed any plans in this regard.

In January 2025, Nike announced its decision to close RTFKT following a reduction in product releases. The company stated it would pause NFT production but continue collaborations with video game developers on virtual items, such as in-game wearables.

Nike's withdrawal from RTFKT comes during a prolonged downturn in the NFT market. Monthly NFT sales saw a significant drop in November 2025 and continued to fall in December. The NFT market's total capitalization has diminished by more than 67% over the last year, based on market data.

In response to the sluggish market conditions, major NFT platforms are revising their business strategies. For instance, OpenSea revealed plans to shift from being solely NFT-focused to a broader trading model that includes tokens, collectibles, and physical goods. Similarly, X2Y2 has ceased its NFT operations to pivot into artificial intelligence, while Rarible has introduced a new trader reward system after calling its previous models unsustainable.

There has also been a noticeable decline in industry events. Organizers for events like NFT Paris and RWA Paris abruptly canceled their February 2026 conferences, citing adverse market conditions as the reason for the cancellations.