Nike sells RTFKT: From Web3 ambitions to real-world compromises, a signal of traditional brands' shift

Nike quietly sold its digital assets subsidiary RTFKT on December 16, 2025. Once considered a core part of the brand’s Web3 strategy—specializing in NFTs and virtual sneakers—the studio has officially been separated from the Nike ecosystem. The transaction was completed with little market noise, and key details such as the buyer’s identity and transaction amount have not been disclosed to date. This move marks a clear contraction of Nike’s Web3 and NFT strategies and provides an important reference for traditional consumer brands on how to rationally approach crypto assets.

Nike’s Web3 Dream vs. Reality Clash

From high-profile deployment to quiet exit

In 2021, Nike acquired RTFKT under the leadership of then-CEO John Donahoe, which was seen as a significant step into the metaverse, gaming, and crypto culture. RTFKT specializes in NFTs and virtual sneaker design, and Nike aimed to explore new growth points for the brand within gaming and virtual worlds.

However, the lifecycle of this strategy was much shorter than expected. In January 2025, RTFKT announced it would shut down its Web3 services, and just a year later, Nike chose to sell the subsidiary. From a high-profile acquisition to a quiet sale, Nike’s actions demonstrate a reality: the cooling of the NFT market and the difficulties of Web3 commercialization have turned once-ambitious bets into burdens.

Deeper Reasons Behind the Strategic Shift

After the appointment of new CEO Elliott Hill, Nike clarified its focus on core sports products and traditional retail channels. Compared to previous management’s emphasis on digital direct sales and experimental innovation, Hill’s strategy is more pragmatic and conservative, prioritizing reducing complexity and risk exposure in non-core businesses.

This shift not only reflects strategic adjustments by management but also indicates macroeconomic pressures. According to the latest reports, Nike’s Converse brand saw approximately a 30% year-over-year decline in sales in the December quarter of 2025. The pressure on core business forced the company to make tough choices. In this context, selling RTFKT became a reasonable option.

Industry Signal: The Dilemma of Web3 Commercialization

Legal and Public Opinion Pressures

The closure of RTFKT also sparked legal disputes. Some investors sued Nike, claiming that the sudden termination of the Web3 project damaged the value of virtual sneakers. Nike requested the court to dismiss these lawsuits by the end of 2024. Such disputes reflect the risks associated with Web3 assets—when market enthusiasm wanes, conflicts of interest between investors and brands can quickly surface.

From Betting to Rationality: Brands’ Practical Choices

It is worth noting that Nike has not completely abandoned digital initiatives. The company has ceased NFT issuance but continues collaborations with game developers like Fortnite and EA Sports, focusing on in-game virtual items and digital wearables. This “light-asset” digital strategy is seen as a realistic adjustment to the high volatility of Web3.

In other words, Nike’s shift is not a complete retreat from digital assets but a move from high-risk issuance to more controllable, core-related digital collaborations. This approach preserves digital opportunities while avoiding the risks of NFT market volatility.

Lessons for Other Brands

The Dilemma Facing Traditional Consumer Brands

Nike’s case sends a clear signal to other traditional brands: Web3 and NFTs are optional, not mandatory. During periods of tightening macroeconomic conditions and pressure on core businesses, brands should prioritize protecting their core competitiveness rather than blindly chasing trends.

Market reactions show that Nike insiders continue to buy company stock (according to recent reports, insiders purchased nearly $3.4 million worth of stock at about $58 per share on January 5), indicating investor confidence in Nike’s return to its main business.

The Future Positioning of Web3

This does not mean Web3 has no commercial value. Lighter applications such as in-game virtual items and collaborations with game developers still have room to survive. However, large-scale, high-investment NFT projects and metaverse bets have lost their appeal in the current environment.

Summary

Nike’s sale of RTFKT marks the end of an era—the era when traditional brands enthusiastically entered Web3 and bet on the metaverse. This transaction reflects three core realities: first, the cooling of the NFT market is ongoing and not temporary; second, the path to Web3 commercialization is far more complex than imagined; third, traditional brands need to find a balance between innovation and risk control.

For other brands still observing Web3, Nike’s experience offers valuable lessons: there’s no need to rush into full-scale bets, but also no need to completely abandon digitalization. Choosing digital collaborations related to core business and with manageable risks may be a more realistic approach.