Nike and its NFT studio RTFKT are facing lawsuits from NFT buyers for $5 million following the platform's closure. The lawsuit claims buyers were misled about the value and longevity of the assets.
Nike and RTFKT's Association with Web3
Nike's acquisition of RTFKT in December 2021 aimed to strengthen its Web3 strategy through digital collectibles. The lawsuit claims buyers were misled about the value and longevity of these assets. So far, neither Nike nor RTFKT's leadership has made any official statements about this matter.
Claims of Misleading Practices
The abrupt shutdown of RTFKT, once a leader in digital fashion, has raised concerns and allegations of misleading practices. The main allegations focus on the misrepresentation of NFT longevity. Despite the lawsuit, the primary network ETH remains stable, and the volatility of the cryptocurrency market has not shown direct correlations with this event.
Impact on the Crypto Market
Historically, similar NFT lawsuits have led to temporary price drops but minimal long-term impacts on cryptocurrencies. Despite the litigation, no substantial effect is noted in Ethereum or the broader crypto ecosystems. Market sentiment remains cautious yet steady.
Currently, there are no significant financial or regulatory shifts as a result of the Nike/RTFKT shutdown. Historical trends indicate that while such lawsuits affect NFT collections, major crypto assets usually stay resilient, unaffected by single legal disputes.
