Nike purchases a virtual sneaker manufacturer to sell digital sneakers in the metaverse

Nike (NKE) became one of the first major companies to embrace the shared virtual environment that gained popularity when Facebook renamed itself as Meta Platforms in November 2021.

Nike has purchased virtual sneaker developer RTFKT for an unspecified fee, as the sportswear behemoth attempts to drastically extend its impact in the fast-emerging “metaverse.”

“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.”

Nike CEO John Donahoe

Users in such blockchain-based worlds can purchase virtual land and other digital goods such as avatar apparel in the form of a crypto asset known as a non-fungible token (NFT).

RTFKT, which was founded in 2020 by Benoit Pagotto, Chris Le, and Steven Vasilev, intends to break the limits of physical and digital value in order to serve its diverse community of artists. Its team creates one-of-a-kind virtual products and experiences by combining the most recent in-game engines, NFTs, blockchain authentication, and augmented reality. They produce, more precisely, NFT souvenirs and memes.

“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.”

Benoit Pagotto