CloneXbig dump40%! NIKE's RTFKT, a former blue chip, ends its operations. Why did it fall?

NIKE’s subsidiary RTFKT will cease operations.

Sport shoe brand giant NIKE once acquired the Non-fungible Token developer RTFKT during the previous Non-fungible Token Bull Market frenzy. However, after a cycle of bull and bear, RTFKT suddenly announced early this morning (12/3) that it will cease operations by the end of January 2025, sparking discussions among Non-fungible Token holders.

The official statement said that although the operation has stopped, RTFKT has not ended, but is becoming what it was originally, a product of cultural revolution.

In order to protect and preserve its pioneering heritage, RTFKT will launch a new website showcasing the groundbreaking work that defines the RTFKT journey, and will also release the final series product ‘BLADE DROP’ as a symbol of dedication to pushing boundaries and merging worlds.

Image source: RTFKT Twitter. Nike’s NFT brand RTFKT announced that it will cease operations.

The netizens’ reactions to this are mixed. One netizen sarcastically commented that another Web3 project has evolved from ‘revolution’ to ‘extinction’.

Another netizen took a positive attitude towards RTFKT’s decision, believing that they could have soft rug the project to gradually die out, but still chose to publicly announce it, making RTFKT a part of NFT history.

Some netizens are worried that the suspension of RTFKT will affect another NFT project “CloneX” under NIKE, and its Floor Price is indeed affected.

“CloneX” is another popular Non-fungible Token series launched by RTFKT, which was once hailed as the “blue chip” of Non-fungible Tokens during the previous Non-fungible Token Bull Market. However, after RTFKT’s statement, the floor price of “CloneX” fell by more than 40%, and once dropped below 0.3 Ethercoin ($ETH), currently temporarily back to 0.35 $ETH.

Image source: BLUR Non-fungible Token trading market BLUR Non-fungible Token trading market: CloneX Non-fungible Token price data

RTFKT: The former blue chip manufacturer is heading towards decline.

RTFKT was officially established in 2020 and is primarily engaged in the development of 3D virtual shoes and Non-fungible Tokens (NFTs).

During the 2021 Non-fungible Token Bull Market, RTFKT quickly rose to prominence, with projects such as ‘MNLTH’ and ‘CloneX’ series achieving high sales and royalties.

In December 2021, NIKE announced the acquisition of RTFKT as an important move into the metaverse and Non-fungible Token (NFT) field. NIKE stated that the acquisition is aimed at serving athletes and creators, as well as connecting the intersection of sports, creativity, gaming, and culture.

Further reading: From virtual shoes to Gen Z fashion brands! Understanding the development history of RTFKT in one article

However, after the cryptocurrency market entered a bear market in 2022, the Non-fungible Token market also suffered a severe blow.

According to Cointelegraph, RTFKT’s total revenue is about $50 million, but its related business has been greatly affected as the NFT frenzy subsides. In addition, NIKE itself is facing sales decline and has to adjust its investment strategy in emerging fields. This may be the main reason for RTFKT’s cessation of operation.

Image source: The well-known Non-fungible Token series ‘CloneX’ under RTFKTRTFKT

During the Non-fungible Token revival, RTFKT holder expressed confusion

However, before RTFKT ceased operations, it seems that there are still many issues to be resolved.

Some netizens are curious about how the royalties of the RTFKT’s Non-fungible Tokens currently circulating in the market will be handled. In addition, the statement does not mention the follow-up treatment of ‘INVTRY’ and ‘CloneX’, which has left holders very confused.

Another netizen expressed his support and nostalgia for RTFKT, hoping that RTFKT can renew this decision, because it is currently the eve of a new wave of Bull Market in the non-fungible token market. In the past week, the non-fungible token market has shown signs of rejuvenation, with Bored Ape, CryptoPunks, Pudgy Penguins all showing gains of between 17% and 80%, and some projects have rebounded 2 to 3 times.

He believes that the RTFKT team has made significant contributions to the non-fungible token industry and believes they can find a way to balance consumer demand with technological innovation.

Image source: CoinGecko NFT market shows signs of recovery in the past week

“CloneXbig dump40%! NIKE’s RTFKT, a former blue chip, has ended its operation. Why did it fall?” This article was first published in “encryption City”.