What kind of entity is RTFKT, the crypto streetwear brand acquired by Nike?

Author: 0x21, 0x13

Source: Rhythm Research Institute

If a few days ago, the news of adidas collaborating with well-known NFT brands like Bored Ape was just a warm-up, then today’s announcement by Nike acquiring RTFKT is akin to a feast. Following its acquisition of Converse in 2007, this planet's largest publicly traded sports brand has once again acquired a trendy sports brand after 14 years.

However, this is a sports brand in the virtual world.

Someone once commented on RTFKT: If you wanted a pair of Air Jordans when you were a child, then when your child is born, they will want a pair of RTFKT.

Today, RTFKT co-founder Benoit Pagotto proudly stated on Twitter: "RTFKT is now part of Nike."

The name RTFKT is derived from its phonetic similarity to the English word "artifact," and it also represents its brand philosophy.

From the moment RTFKT was born two years ago, it has always looked up to Nike, setting the goal of creating "Nike in the metaverse." As NFTs entered the mainstream, more and more industry giants began collaborating with crypto-native brands. Since adidas announced partnerships with BAYC, PUNKSComic, and Gmoney, many have speculated: "After adidas entered the game and took the lead, will Nike embrace NFTs?"

Nike is not only actively embracing NFTs but has also directly acquired the well-regarded RTFKT in the crypto world. Looking back at the developments in the NFT space over the past year, RTFKT has been relatively low-key compared to the hype generated by CryptoPunks and BAYC. It wasn't until the release of its avatar series CloneX that many newcomers to the NFT space recognized this crypto streetwear brand known for its infinite creativity and high-quality craftsmanship.

In fact, RTFKT has long-standing ties with Nike.

The Rise of RTFKT

Gaining Fame

In February 2020, a photo of Elon Musk wearing a pair of CyberTruck-style sneakers went viral online, with many people amazed by the sci-fi style of the shoes.

In fact, the so-called "Cybersneaker" was not a real sneaker but was digitally composited onto Elon Musk's feet by the RTFKT team. RTFKT auctioned this NFT sneaker on the NFT trading platform SuperRare for 30 ETH, and when bidders realized the shoe was a PS composite, the bidding reached as high as 65 ETH.

The "CyberSneaker" composited on Elon Musk's feet

The auction of "Cybersneaker" brought RTFKT into the public eye, and the subsequent release of The X Evolutions truly set RTFKT on the path of NFT sneakers.

In November of the same year, RTFKT created an NFT sneaker called The X Evolutions inspired by the Air Jordan 1 OG and launched a 10-day auction on a platform built by the team. The pure white sneaker would gain a splash of paint each time the auction reached a certain price, and the design would change accordingly.

Ultimately, after evolving six times, the sneaker was acquired for 22 ETH by the famous NFT collector Whaleshark, who also received a physical version of the sneaker made by RTFKT after the auction ended.

The physical version of The X Evolution received by Whaleshark

This experimental auction made RTFKT famous. Later, in an interview, RTFKT co-founder Chris Le mentioned, "We hope to transition to NFTs by combining physical and digital products; this is just a way for people to try it out first."

The Collaboration Path

The success of The X Evolution made RTFKT realize the intricate connections between the NFT market and the fashion industry. In addition to continuously creating NFT sneakers, RTFKT brought terms like "limited edition," "trendy merchandise," and "artist collaborations" from the fashion world into the NFT market. "Collaboration" can be said to be the keyword that ran through RTFKT's entire year in 2021, and it was the core reason they established a foothold in the NFT market.

At the beginning of 2021, RTFKT collaborated with the 18-year-old artist FEWOCiOUS to kick off the collaboration journey. Inspired by the Supreme brick, RTFKT and FEWO created a limited NFT work called "FEWO Crypto Brick," with only 24 pieces available. Each holder of a FEWO Crypto Brick was recorded on the RTFKT website as a legendary collector and could receive more NFTs and physical airdrops in the future.

FEWO Crypto Brick series

Meanwhile, in addition to creating a series of sneakers inspired by Nike Air Force 1 with FEWO, RTFKT also collaborated with the famous gaming company ATARI to release the ATARI SNEAKER series, created sneakers inspired by Nike Dunk High for the Chinese Lunar New Year, and collaborated with well-known YouTuber Faze Banks to launch the META JACKET series.

RTFKT's RTFKT Golden Ox Enchanted Sneaker - CNY Exclusive created to celebrate the Chinese Lunar New Year

In April 2021, RTFKT collaborated with 18 top crypto-native artists to launch the Drip Doll series and in June launched the FORGING PUNK PROJECT to create unique NFTs and physical sneakers for CryptoPunk holders, among other initiatives.

Drip Doll series

In just six months, you could seemingly find RTFKT's logo everywhere in the NFT market, with countless collaborative projects involving RTFKT, all featuring top giants from various industries.

From Evolution to Transformation

RTFKT's collaboration path solidified its position as a leader in trendy NFTs, but all its fame and influence were still limited to the crypto world. At the beginning of July, the NFT market experienced an unprecedented explosion, with avatar series "breaking out" and bringing NFTs to a global audience, prompting more brands and celebrities to see the future opportunities in the NFT market and join in.

If the previous relationship between RTFKT and Nike was merely that of fans and idols, this collaboration truly broke down the barriers between the two brands.

RTFKT x Jeff Staple

Jeff Staple, the "pigeon" from New York, may not be known to many as a streetwear brand. So when RTFKT collaborated with Jeff Staple to create sneakers and made a 3D model of his pigeon logo, most collectors simply thought it was just another collaboration series from RTFKT.

RTFKT x Jeff Staple

Little did they know that this "pigeon" was the true link connecting RTFKT and Nike. The front page of the March 1, 2005, New York Post described the frenzy surrounding the release of the NIKE SB Dunk collaboration sneakers, which led to a large police presence to prevent stampedes and maintain order. The protagonist of this commotion was the "pigeon" Jeff Staple, who collaborated with NIKE.

March 1, 2005, New York Post reprint

According to incomplete statistics, among the top ten "expensive" sneakers today, the Staple x Nike SB Dunk ranks second, with a current secondary market price of about $90,000.

Price of Staple x Nike SB Dunk in size 8.5 on sneaker platform StockX

Sixteen years later, Staple x Nike SB Dunk made a comeback, and together with RTFKT, they launched the RTFKT x Jeff Staple series. Looking back, the relationship between Nike and RTFKT seems to have had its roots all along.

The "X"

While RTFKT was preparing to release the Jeff Staple collaboration, it also announced information about CloneX on its official Twitter. At that time, avatar NFTs were all the rage on social media, with one high-priced NFT avatar after another being sold, and creativity abounding.

As the trendiest NFT brand, RTFKT naturally would not miss this opportunity. With 20,000 3D avatars featuring skeletal binding, providing virtual space for digital avatars, advertising in Times Square, collaborations with Takashi Murakami, and other factors, the release of CloneX avatars became one of the most anticipated NFT projects in the second half of 2021.

Despite facing numerous technical issues throughout the production and release process, causing community dissatisfaction, and being labeled as "the most expensive NFT avatar in history" with a launch price of 2 ETH, it must be acknowledged that RTFKT's avatar production quality has no competitors.

RTFKT: CloneX

The collaboration with Staple allowed RTFKT to evolve from a team focused on sneaker NFTs to a level comparable to the world's top brands, while the release of CloneX signified RTFKT's transformation from the NFT market to the metaverse.

A year ago, after the auction of The X Evolutions ended, RTFKT co-founder Chris Le stated, "We hope to transition to NFTs by combining physical and digital products; this is just a way for people to try it out first."

Today, a year later, RTFKT has not only shed the "physical" label but has also become one of the few brands in the NFT world. Subsequent NFT sneakers no longer need to say "inspired by Air Jordan or Air Force." At the same time, they achieved their goal of becoming "the true Nike in the metaverse."

WhaleShark, who won The X Evolutions a year ago, changed his avatar to CloneX on Twitter and posted: "We should all know how amazing RTFKT has been in this space over the past time. I always remember the moment I first met RTFKT's founders and bought their first AI-generated sneaker, The 'X'."

The "X" not only represents the nickname of RTFKT's first AI sneaker but also the name of CloneX, and most importantly, it proves RTFKT's unknown potential.

Some say this is Nike's first step "All in metaverse," a positive signal; others argue that this is just Nike acquiring a "Crypto Native" identity. Regardless, Nike's entry will undoubtedly significantly increase traditional industries' attention to NFTs and encourage more giants to bravely embrace NFTs and the new era.

RTFKT co-founder Benoit Pagotto once mentioned in an interview what advantages RTFKT has compared to traditional industry giants: "We have resources they don't have, which is the culture we have that they lack—crypto culture. They cannot spend a lot of time learning this knowledge every day."

The breakout of NFTs has always been a non-native breakout, with luxury brands releasing NFTs, athletes issuing NFTs, and musicians selling NFTs—all collaborations between NFTs and other industries. Nike's acquisition is not only an acknowledgment of NFTs but also a recognition of crypto-native culture.

It is foreseeable that in the future, more giants like Nike will join the world of NFTs through acquisitions and collaborations, and crypto-native brands like RTFKT will gain mainstream attention through their growth, bridging the gap between the crypto and traditional worlds through NFTs.