After acquiring its virtual sneaker label RTFKT in 2021, Nike is now calling it quits on one of its most promising innovations.
What a difference a year can make. After amassing $185.3 million in NFT sales revenue in 2023, within three years of operation, Nike is rolling up its virtual sneaker label, RTFKT (pronounced “artifact”). What was once seen as a step into the future for the sneaker giant will soon be a chapter from its past and a cautionary tale for brands that aspire to innovate.
For some, the decision to sunset the venture is a no-brainer. Web 3 has slowed and Nike’s acquisition of the digital fashion business in December 2021 happened at a time when non-fungible tokens, augmented reality, and virtual reality were the closest bet to be the next big thing. ChatGPT didn’t make its debut until almost a year later, so AI wasn’t as pervasive or pronounced as we now know it to be.
