2021 was the year of the NFT with thousands of projects announced, each promising high returns on investment, such as the Bored Ape Yacht Club project. Nike also jumped into the NFT arena by selling virtual shoes through their RTFKT platform. Now Nike is facing a class action lawsuit from a group of investors who suffered losses after RTFKT closed last year.
According to documents filed in court, a group of investors claim that Nike's actions in closing RTFKT caused them to suffer losses. Nike's NFT collection fell sharply after RTFKT closed. Nike is also said to have failed to warn buyers that the NFTs being offered were unregistered securities. The plaintiffs are seeking $5 million in damages because this made Nike violate consumer protection laws in New York, California, Florida, and Oregon.
After demand began to decline in 2023, reports emerged that 95% of NFTs now no longer have any value. Leading NFT stores such as OpenSEA began laying off 50% of their employees, while in Malaysia, the NFT store on Pentas is now no longer accessible.