Nike Discontinues Operations at NFT Studio RTFKT by January 2025
The NFT sector experienced a contraction in September, as reported by NFT Evening, and the closure of NFT studio RTFKT serves as a stark reminder of the volatile nature of the market. The contraction might be indicative of a broader trend in the market's stability, with the NFT market's future remaining uncertain.
RTFKT, known for creating digital collectibles for metaverses, faced challenges in maintaining long-term relevance, even with backing from industry giants like Nike. The studio, led by founders Benoit Pagotto, Chris Le, and Steven Vasilev, collaborated with notable brands and figures such as Nike, Jeff Staple, and Takashi Murakami during the NFT and virtual world boom.
Despite its success, RTFKT's most successful collection, CLONE X, created in collaboration with Takashi Murakami, generated $119 million in lifetime sales. This collection also contributed significantly to the studio's revenue, with $37.8 million in royalties earned. RTFKT's total NFT sales revenue, as per DeFi Llama, reached $49.8 million, with $45.7 million in royalties.
RTFKT's acquisition by Nike in 2021 aimed to strengthen Nike's presence in the metaverse sector. As part of Nike, RTFKT launched several NFT collections and transformed digital sneakers into physical products under its brand.
However, the declining NFT demand is speculated to have played a role in RTFKT's decision to cease operations. The studio announced that it will shut down by the end of January 2025. RTFKT's closure could signal a potential downturn in the NFT market, as one of the more successful projects is leaving the scene.
The NFT market is evolving, with projects facing increased difficulties in maintaining their relevance. With 96% of minted NFTs reportedly inactive, the market is showing signs of instability, as seen by the closure of projects like RTFKT. The NFT sector's contraction and the challenges faced by projects like RTFKT underscore the uncertainty surrounding the NFT market's future.
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