Amy, did you hear that Nike’s NFT project RTFKT is shutting down? I thought NFTs were supposed to be the future!

Yeah, I saw that. It’s surprising but also shows how much the NFT market has changed. RTFKT was a big name in NFTs, especially with their digital sneakers and avatars.

Wait, what exactly did they do? I know it has something to do with digital stuff, but I’m lost.

Okay, so RTFKT, pronounced ‘artifact,’ made NFTs like digital sneakers, avatars, and collectibles. You could use them in virtual worlds or games, and some even came with physical versions, like their Cryptokicks sneakers.

That sounds cool! And Nike owned them?

Yes, Nike bought RTFKT in 2021 to explore Web3 and digital fashion. They wanted to attract younger people and try new things like combining gaming, sneakers, and NFTs.

So why are they shutting it down? Didn’t they make a lot of money?

They did—about $50 million in earnings. But the NFT market isn’t as hot as it was a few years ago. Demand dropped, and even their big projects like Clone X lost value. Nike probably decided it wasn’t worth it anymore.

Oh, so it’s like they jumped on the NFT trend but got out when it slowed down?

Exactly. Plus, the new Nike CEO wants to focus more on sports gear and traditional products, not experimental tech like NFTs.

That makes sense. But what’s the big lesson here? Are NFTs done for good?

Not necessarily. It shows that even big brands need to be careful with new tech. NFTs are still around, but the hype has faded. Projects need real value to survive.

Real value, like what?

Things people can use, like NFTs with real-world benefits or gaming items that players love. RTFKT tried that, but maybe the timing or market wasn’t right.

So, they’re not all bad ideas, but they can’t just be hype anymore?

Exactly. It’s a learning moment for Web3. And RTFKT is ending with one final collection, the MNLTH X, to celebrate their work.

That’s nice. Maybe they’ll inspire other projects to try better ideas in the future.

I think so. The NFT space is evolving, and projects like RTFKT, even if they shut down, leave lessons behind.