Core Insights - Nike has sold its non-fungible token (NFT) arm, RTFKT, marking the end of an acquisition that represented the company's ambitious metaverse plans [1] NFT Market Overview - NFTs are unique digital assets on a blockchain, representing ownership of items like art and collectibles, gaining mainstream popularity in 2021 [2] - The popularity of NFTs has declined due to market saturation, falling resale values, and reduced speculative interest, alongside issues like scams and environmental concerns [3] RTFKT and Nike's Strategy - RTFKT was a digital fashion and collectibles studio that specialized in NFTs and virtual wearables, founded in 2020 and acquired by Nike in 2021 as part of its metaverse strategy [4] - RTFKT played a significant role in Nike's Web3 strategy, launching virtual sneakers and avatars before the subsidiary was ultimately shut down and sold [5] Shift in Company Focus - Nike's decision to sell RTFKT followed its 2023 move to shut down the subsidiary, with current CEO Elliott Hill refocusing the company on core sports performance and rebuilding relationships with major wholesale partners [6] - The sale of RTFKT became effective on December 16, marking a new chapter for the company [7]

Core Insights - Nike has sold its digital products subsidiary RTFKT, marking its exit from blockchain-based collectibles and a strategic shift back to its core athletic performance business under new CEO Elliott Hill [1][3][4] - The sale was effective December 16, coinciding with a reported 30% drop in quarterly sales for Nike's Converse brand [1][3] - Nike had previously announced plans to end its NFT operations and blockchain initiatives [2] Group 1: RTFKT Acquisition and Sale - RTFKT was acquired by Nike in 2021 during the NFT boom, aimed at expanding Nike's presence in collectibles and metaverse markets [3] - The sale of RTFKT is described as "launching a new chapter" for Nike, while still allowing for potential future digital initiatives [4] - The buyer's identity and financial details of the sale remain undisclosed, but speculation suggests the buyer may be a significant player in the digital assets space [5] Group 2: Market Reaction and Legal Issues - Following the sale announcement, RTFKT tokens surged by over 270%, indicating market optimism about the potential revival of NFTs under new ownership [5] - Nike is facing legal challenges related to its exit from digital collectibles, with a proposed class action lawsuit filed by purchasers of Nike-themed NFTs seeking at least $5 million in damages [6][7] - The lead plaintiff claims that Nike's abrupt decision to shut down RTFKT devalued the NFTs without adequate notice or compensation [7]