Nike Acquires Virtual Shoe Company RTFKT – Why?

Earlier this month, Nike acquired RTFKT in a business move that has everybody chatting. RTFKT (pronounced “artifact” because they’re, like, super cool) is, according to their site, a “very eclectic, creator-led organization,” a “leading brand that leverages cutting edge innovation to deliver next generation collectibles that merge culture and gaming.”

They make NFTs (non-fungible tokens). Specifically virtual shoes. Nike makes shoes. So, obviously, they need to collaborate, right? But why would Nike, a company that makes real shoes, buy a company that makes virtual shoes? 

Because NFTs are trendy. And Nike has the budget and resources. 

What Is RTFKT?

RTFKT is one of the biggest companies in the NFT space. Founded in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, RTFKT is “a pioneering and innovative brand that redefines the boundaries of physical and digital value to serve their broad community of creators.” 

They make NFTs, they’re popular, and people will pay a lot of money for their work. 

It’s not clear whether NFTs are of actual value, despite a few selling for millions upon millions. Why would anyone want to pay an exorbitant amount of money for a digital asset? 

In short, to flex on your friends. 

“This is a unique opportunity to build the RTFKT brand and we are excited to benefit from Nike’s foundational strength and expertise to build the communities we love.

“Nike is the only brand in the world that shares the deep passion we all have for innovation, creativity, and community, and we’re excited to grow our brand which was fully formed in the metaverse.” – Benoit Pagotto, co-founder of RTFKT. 

As the metaverse emerges, so will digital assets. Do you want to wear those janky virtual sneakers when you log into Meta? Or do you want the sick RTFKT sneakers that make your avatar look fly? 

What Are You Going To Do With Digital Shoes?

Nike is one of the world’s most successful brands. It’s no wonder a new company like RTFKT would want to collaborate with them. They’d be foolish not to. With Nike, RTFKT can distribute their brand globally. And that’s beautiful for their bottom line. 

But why would Nike want in on this? In short, it’s good business. Because Nike acquired one of the largest companies in NFTs, they get a head start on the latest trend and reap all the benefits. 

“This acquisition is another step that accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming, and culture.

“We’re acquiring a very talented team of creators with an authentic and connected brand. Our plan is to invest in the RTFKT brand, serve, and grow their innovative and creative community and extend Nike’s digital footprint and capabilities.” – John Donahue, President and CEO of Nike. 

If RTFKT fails, and the whole NFT trend with it, Nike will be just fine.