GG RTFKT

RTFKT, the trailblazing NFT and digital fashion startup acquired by Nike in 2021 is sadly, shutting down. Once hailed as a web3 pioneer, the brand will cease standalone operations, with Nike absorbing its projects into its broader ecosystem in 2025. The announcement, confirmed via RTFKT’s official channels, marks the end of a short but transformative chapter for the NFT and digital fashion industry.

What Was RTFKT?

Founded in 2020 by Benoit Pagotto (@benoitpagotto on X.com), Chris Le (@cb_hoyo on X.com), and Steven "Zaptio" Vasilev (@Zaptio on X.com), RTFKT quickly became a symbol of what web3 could achieve. The founders combined expertise in marketing, gaming design, and sneaker customization to create a brand that blurred the lines between fashion, gaming, and digital art.

RTFKT’s top-tier luxury and fashion brand collaborations were legendary. A $3 million NFT Nike sneaker drop with artist Fewocious sold out in under seven minutes. Their partnership with renowned artist Takashi Murakami for the CloneX avatar project set a new standard for digital collectibles. Their Rimowa collaboration merged physical and digital craftsmanship, introducing 888 NFTs that could be forged into limited-edition physical suitcases. Boldly venturing into the future of fragrance, RTFKT partnered with luxury brand Byredo to create a Web3 fragrance.These ventures not only elevated digital fashion but also showcased NFTs as cultural and financial powerhouses. 

Why Is RTFKT Folding?

In its announcement, Nike emphasized integrating RTFKT’s innovations into its existing digital platforms, such as .SWOOSH. However, the move raises questions about the future of RTFKT’s projects and whether its unique creative ethos can survive under a corporate umbrella.

Ultimately, the winds of change blow harder in web3 than anywhere else. Nike’s decision to shutter RTFKT as a standalone brand is tied to the broader challenges of the crypto and NFT market. 

The move to fold RTFK is significant for two reasons, it emphasises the pace at which web3 innovates, and the implication that relatively new technology and innovations can be left in the dust in a short period of time. Since RTFTK’s acquisition by Nike and the explosive rise of NFTs in 2021, the NFT space has weathered cryptowinter 2022-2024, albeit poorly. Bitcoin Ordinals have brought NFTs to the Bitcoin blockchain, allowing unique data to be inscribed on individual satoshis, expanding the blockchain’s functionality beyond transactions (Investopedia). Artificial intelligence is now integrated into NFT creation, enabling dynamic and interactive digital art (AirNFTs). The gaming industry has embraced NFTs for in-game assets, offering players true ownership and cross-platform tradeability (Bueno.Art). Innovations like cross-chain interoperability and NFT-Fi platforms have enhanced liquidity and utility (CoinMarketCap). Meanwhile, regulatory frameworks addressing taxation and intellectual property are beginning to stabilize the market (PWC). These developments mark NFTs' shift from speculative assets to tools with tangible, practical applications. And we haven’t even touched on the rise to prominence of memecoins, arguably the most important vessel of collective attention in the crypto space in 2024/2025 (see Murad Mahmudov’s speech "The Memecoin Supercycle,"). 

What Does This Mean for Web3?

The closure of RTFKT underscores several key trends and challenges for the web3 industry:

1. Market Correction: The NFT boom of 2021 has given way to a more cautious and skeptical environment. Brands relying on hype and speculative buying are struggling to sustain momentum.

2. Centralization Concerns: RTFKT’s integration into Nike signals a broader trend of traditional corporations consolidating web3 innovations. While this may bring stability, it risks alienating the decentralized communities that fueled web3’s rise.

3. A Call for Utility: The focus in web3 is shifting from high-profile drops to practical applications, such as loyalty programs, digital identity, and metaverse integration. RTFKT’s closure highlights the need for NFTs to deliver lasting value beyond exclusivity. 

The Legacy of RTFKT

RTFKT’s story is one of meteoric rise and rapid consolidation. Its founders pushed the boundaries of what NFTs could achieve, creating cultural milestones in the process. But the brand’s closure also serves as a cautionary tale: even the most celebrated web3 ventures must adapt to survive in an unpredictable market.

As Nike carries RTFKT’s innovations forward, the challenge will be preserving the bold, boundary-pushing spirit that made it a web3 icon. For the industry at large, this moment is a reminder that while web3 is evolving, only those who balance creativity with sustainability will thrive.

M&A Perspective: Lessons for Web3 Deals

The story of RTFKT offers key insights for web3 businesses on both the buy and sell side. Nike’s rumored $1 billion acquisition of RTFKT in 2021 was a landmark deal, not only for its size but also for the statement it made about the potential of web3 innovations. At its peak, RTFKT reportedly earned $185.3 million in NFT revenue, underscoring the rapid monetization possible in the digital collectibles space.

However, the decision to fold RTFKT raises critical considerations for future web3 transactions. For acquirers, it highlights the risk of overvaluing companies built on emerging technologies, where trends and user engagement can shift rapidly. Nike’s integration of RTFKT signals the need for strategic alignment between the acquired entity and the parent company, particularly in volatile markets like web3. For sellers, the takeaway is the importance of demonstrating sustainable growth and utility beyond initial hype to ensure long-term relevance post-acquisition.

As consolidation accelerates in web3, companies must also navigate unique challenges like intellectual property protection, tokenomics, and regulatory compliance. The RTFKT-Nike deal shows that while acquisitions in this space can unlock unprecedented opportunities, success requires a clear roadmap for integrating innovation into enduring business models. This is a pivotal lesson for any web3 company contemplating an M&A transaction in today’s evolving landscape.

Ape Law: Supporting Web3 M&A Deals with Comprehensive Services

Navigating the complexities of M&A transactions in web3 requires more than just legal expertise - it demands strategic vision and end-to-end support. Ape Law leverages a vast international network of industry leaders, boutique banks and UHNWs and provides access to premier investment opportunities in the web3 and digital asset sectors. We have successfully advised clients on complex, multi-jurisdictional transactions, delivering unmatched value and consistently achieving positive outcomes in the dynamic world of web3 M&A

We specialize in guiding clients through every stage of M&A deals, offering a full suite of services tailored to the unique challenges of the web3 industry. Our full suite of services includes:

• Deal Structuring and Negotiation: Securing favorable terms while minimizing risks in rapidly evolving sectors. 

• Due Diligence: Assessing the operational, financial, and legal health of web3 businesses, including tokenomics, IP, and compliance.

• Regulatory Navigation: Managing jurisdiction-specific requirements to ensure seamless transactions.

• Finance: Connecting clients with VC and growth capital for strategic funding. 

• Post-Merger Integration: Aligning acquired assets with business goals for long-term success.

Whether you’re acquiring, consolidating, or seeking strategic funding, Ape Law provides the expertise and resources to help you thrive in the transformative world of web3 M&A.

Contact us now to find out how we can help.