Nike just did it.
Yes, the athletic footwear and apparel company finally sold off its non-fungible token (NFT) arm, RTFKT.
This is a quiet end to an acquisition that once symbolized the company's ambitious metaverse plans.
Related: Are NFTs a Good Investment?
NFT popularity on decline
NFTs are unique digital assets stored on a blockchain , representing ownership or proof of authenticity for items such as art, music, collectibles, videos, or virtual goods.
Unlike cryptocurrencies like Bitcoin (BTC) or Ether (ETH), which are interchangeable, each NFT has distinct metadata that makes it one of a kind, hence "nonfungible."
NFTs became mainstream in 2021 as artists, brands, and game developers began selling digital items verified on networks like Ethereum.
However, their popularity has declined due to market saturation, falling resale values, and waning speculative interest.
Scams, environmental concerns, and shifting investor focus toward AI and real-world assets (RWAs) have further dampened demand. Many projects failed to deliver lasting utility, leading to reduced confidence and lower trading volumes.
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RTFKT was Nike's Web3 weapon
RTFKT was a digital fashion and collectibles studio specializing in NFTs, 3D art and virtual wearables.
Founded in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, the company gained prominence for blending gaming culture, blockchain technology, and high-end sneaker design.
Nike acquired the startup in 2021 under former CEO John Donahoe, as part of its push into the metaverse and digital collectibles market.
RTFKT became a key player in developing Nike's Web3 strategy, launching virtual sneakers and avatars before Nike eventually shuttered and sold the subsidiary.
Nike moves away from NFT and Metaverse
The OregonLive reported on Jan. 6 that Nike has sold its digital art and collectibles studio.
The sale followed the company's decision in 2023 to shut down the subsidiary.
Current CEO Elliott Hill is shifting the company's focus back to core sports performance and rebuilding relationships with major wholesale partners such as Dick's Sporting Goods and Foot Locker.
The sportswear giant confirmed with OregonLive that the sale of RTFKT, pronounced "Artifact," became effective on Dec. 16, launching what it called "a new chapter for the company and its community."
Terms of the deal, including the buyer, were not disclosed.
In its statement, Nike said it "continues to invest in delivering innovative products and experiences across physical, digital, and virtual environments."
Before winding down RTFKT's operations, Nike said in a post on Medium in 2024 that it would temporarily halt the production of NFTs but continue partnerships with gaming companies to develop virtual wearables and in-game products.
Related: What are tokenized stocks? Explained
This story was originally published by TheStreet on Jan 7, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
