Nike is being sued by its NFT holders due to the sudden closure of RTFKT! Traditional industry giants are frequently failing in their venture into Web3.

The cryptocurrency circle (120Btc.coM): The global sports brand leader Nike (Nike) made a high-profile acquisition of the virtual fashion brand RTFKT in 2021, attempting to venture into the Web3 and non-fungible token (NFT) market. However, on December 2, 2024, Nike officially announced the completion of the gradual shutdown of its RTFKT division, marking the end of this initiative. However, according to a report by Reuters, Nike is currently facing a class-action lawsuit from its NFT holders due to the sudden closure of RTFKT, with accusations that Nike failed to disclose risks that led to significant losses for investors.

Lawsuit Details: Investors Accuse Nike of Misleading, Seeking Over $5 Million in Damages

Reports indicate that this class action lawsuit was formally filed on April 25 in the United States District Court for the Eastern District of New York ( Brooklyn ), with case number "Cheemav Nike Inc, No.25-02305". The plaintiff is led by Australian resident Jagdeep Cheema, representing investors who purchased Nike-themed NFTs and other cryptocurrency assets. The plaintiff alleges as follows:

• Sudden closure of RTFKT: Nike announced the closure of the RTFKT department without warning in December 2024, leading to a collapse of the related NFT market and a significant drop in the value of NFTs held by investors.
• Unregistered Securities: The plaintiff claims that Nike has not registered its NFT as a security, violating U.S. securities regulations, and has not adequately disclosed the risks of project termination, constituting misleading consumer behavior.
• Technical issue: After RTFKT shut down, some NFTs could not display images properly due to server support interruption, such as the CloneX series (, further harming the rights and interests of investors.

The plaintiff stated that if they had known in advance that the NFT was not registered as a security or that Nike might suddenly terminate the project, they would not have purchased it at a high price, or even invested at all. They claim that Nike violated consumer protection laws in New York, California, Florida, and Oregon, and are seeking over $5 million in damages.

As of the time of writing, Nike has not publicly responded to this lawsuit.

Traditional Industry Giants Frequently Fail in Entering Web3

Nike announced the acquisition of RTFKT in December 2021. Founded in 2020, this digital fashion brand is known for its virtual sneakers and NFTs, particularly the CloneX series created in collaboration with Japanese artist Takashi Murakami. This was at the height of the NFT market boom, and Nike viewed RTFKT as a foothold for entering Web3, aiming to combine culture, gaming, and digital collectibles to create "next-generation collectibles." However, as the NFT market cooled down and technical challenges arose, RTFKT's business model became unsustainable. Ultimately, Nike chose to shut down this division in 2024, quietly withdrawing from the Web3 market.

It is worth mentioning that Nike is not the only traditional industry giant that has faced setbacks in the Web3 space. In recent years, several traditional companies have attempted to enter Web3 through NFTs, blockchain, or the metaverse, but many projects have ended in failure due to market volatility, regulatory challenges, or immature business models. Here are a few publicly reported cases:

• Starbucks ) Starbucks (: Starbucks launched the "Starbucks Odyssey" NFT rewards program in 2022, allowing members to obtain exclusive virtual experiences through the purchase of NFTs. However, in March 2024, Starbucks announced the termination of the program due to declining demand in the NFT market and high costs of technological integration. The closure of the program led to a decrease in asset value for its NFT holders, which also triggered dissatisfaction among some consumers.
• Gaming giant GameStop: GameStop launched its NFT marketplace in 2022, attempting to apply blockchain technology to the trading of digital assets in gaming. However, the marketplace struggled with low trading volumes due to a lack of support from mainstream players, and GameStop ultimately shut down its NFT platform in early 2024, admitting that it could not achieve the expected commercial value.
• Budweiser ) Budweiser (: Budweiser launched an NFT series in 2021 in collaboration with horse racing and beer brands, attempting to attract young consumers. However, as the NFT market cooled down, Budweiser's NFT project lacked subsequent promotion, leading to a rapid decline in market attention, and by 2023, it was almost forgotten.
• Disney ) Disney (: Disney launched the "Golden Moments" NFT series in collaboration with VeVe in 2021, featuring Marvel and Star Wars characters. However, due to fluctuations in the NFT market and a decline in consumer interest in digital collectibles, Disney significantly reduced its Web3-related investments after 2023, shifting its focus to AI and streaming media.

Nike's lawsuit stemming from the closure of RTFKT not only exposes its strategic missteps in the Web3 space but also serves as a warning bell for other traditional companies. As Web3 technology matures, businesses must carefully assess market risks and technological feasibility to avoid repeating past mistakes. The progress of this case will continue to be monitored and may provide important references for the legal controversy over whether NFTs should be considered securities.