The encyclopedia · Strategy & Leadership · Strategic decision · 2021–2025
Nike bought RTFKT to own the metaverse — then quietly sold it
Nike's digital sneaker and NFT experiment, acquired in 2021 at the peak of the hype cycle, was sold to an undisclosed buyer in December 2025.
Nike · RTFKT · 2025-12-16
What happened
Nike acquired RTFKT in 2021 at the peak of the NFT frenzy, betting that digital sneakers, virtual fashion, and the metaverse would define the future of the brand. Founded by Benoit Pagotto, Chris Le, and David Cash, RTFKT was a digital fashion studio that created virtual sneakers and NFT collectibles. Nike saw it as a gateway to Web3 and a new revenue stream beyond physical products.
Under CEO John Donahoe, Nike invested heavily in the vision, launching virtual sneaker drops and gaming partnerships. But consumer interest in NFTs collapsed as the crypto market crashed and the metaverse hype faded. RTFKT's digital products never reached mainstream adoption, and the experiment became a cost center rather than a growth driver.
When Elliott Hill took over as CEO in late 2024 with a 'Win Now' mandate, he immediately targeted RTFKT as a non-core cost. In January 2025, Nike announced it would shut down RTFKT's Web3 services, sparking a class-action lawsuit from investors who called the shutdown a 'rug pull' that devalued their digital assets. On December 16, 2025, Nike quietly sold RTFKT to an undisclosed buyer — a definitive end to a four-year, billion-dollar bet that never paid off.
Why it happened
- Nike bought into NFTs and the metaverse at their absolute peak — the hype cycle collapsed before RTFKT could deliver any sustainable revenue.
- CEO Elliott Hill's 'Win Now' mandate prioritized physical products, wholesale partnerships, and cost-cutting over moonshot digital experiments.
- A class-action lawsuit accusing Nike of a 'rug pull' added legal risk and made RTFKT a liability rather than an asset worth keeping.
- Nike faced broader pressure — Converse sales dropped 30% and competition from Hoka, On, and New Balance intensified — leaving no budget for unprofitable experiments.
The lesson
A hype cycle is not a business model. Nike's billion-dollar bet on digital sneakers shows that buying into a trend at its peak can commit a company to revenue that never arrives.
Aftermath
Nike continues to pursue limited virtual partnerships with gaming platforms like Fortnite and EA Sports, but its retreat from Web3 marks a definitive end to the industry-wide NFT experiment in fashion.
Sources
- Hypebeast — Nike Quietly Sold RTFKT in December (Jan 2026)
- Business of Fashion — Nike Sold RTFKT in December (Jan 2026)
- Coinfomania — Nike Quietly Sells RTFKT After Shutting Down Web3 (Jan 2026)
- World Footwear — Nike quietly offloads its NFT business (Jan 2026)
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