How Lawsuits and Low Volume Pushed Nike to Drop NFTs
The post How Lawsuits and Low Volume Pushed Nike to Drop NFTs appeared on BitcoinEthereumNews.com. After brands like Nike, Starbucks, DraftKings, PUMA, and Reebok eagerly joined the NFT frenzy, they are scaling back or completely abandoning their projects. This pivot raises questions about the sustainability of NFTs in mainstream industries and shows the challenges of integrating blockchain-based assets into long-term business strategies. The NFT Market Landscape In 2021, NFTs exploded with skyrocketing trading volume and celebrity endorsements. Major brands swiftly seized the opportunity, launching NFT collections to attract tech-savvy consumers and explore new revenue streams. Nike acquired RTFKT to create virtual sneakers, Starbucks introduced the Odyssey NFT program, and DraftKings partnered with the NFL Players Association (NFLPA) for the Reignmakers game. Similarly, PUMA and Reebok joined the fray with their Super PUMA and NST2 projects. NFT volume. Source. Dune However, the volatility of the NFT market soon exposed its weaknesses. By 2024, NFT trading volumes had plummeted, and many projects failed to deliver lasting value. Total NFT trading volume is much lower now than at the peak in 2021. The NFT Speculative Bubble Bursts, Brands Flee One prominent case is Nike, which shuttered RTFKT in December 2024, triggering a class-action lawsuit in April 2025 in Brooklyn, New York. Led by Australian investor Jagdeep Cheema, the lawsuit alleges Nike caused RTFKT NFTs to plummet from an average of 3.5 ETH ($8,000) in 2022 to 0.009 ETH ($16) in 2025. Plaintiffs claim Nike sold “unregistered securities,” resulting in over $5 million in damages. This case highlights a broader legal issue: the unclear status of NFTs as securities, which continues to fuel litigation across the U.S. Similarly, Starbucks terminated its Odyssey NFT program in March 2024, just two years after its launch. Starbucks’ exit reflects the difficulty of integrating NFTs into everyday consumer experiences, particularly when technical complexities deter mainstream users. DraftKings also faced controversy when it shut…
The post How Lawsuits and Low Volume Pushed Nike to Drop NFTs appeared on BitcoinEthereumNews.com.
After brands like Nike, Starbucks, DraftKings, PUMA, and Reebok eagerly joined the NFT frenzy, they are scaling back or completely abandoning their projects. This pivot raises questions about the sustainability of NFTs in mainstream industries and shows the challenges of integrating blockchain-based assets into long-term business strategies. The NFT Market Landscape In 2021, NFTs exploded with skyrocketing trading volume and celebrity endorsements. Major brands swiftly seized the opportunity, launching NFT collections to attract tech-savvy consumers and explore new revenue streams. Nike acquired RTFKT to create virtual sneakers, Starbucks introduced the Odyssey NFT program, and DraftKings partnered with the NFL Players Association (NFLPA) for the Reignmakers game. Similarly, PUMA and Reebok joined the fray with their Super PUMA and NST2 projects. NFT volume. Source. Dune However, the volatility of the NFT market soon exposed its weaknesses. By 2024, NFT trading volumes had plummeted, and many projects failed to deliver lasting value. Total NFT trading volume is much lower now than at the peak in 2021. The NFT Speculative Bubble Bursts, Brands Flee One prominent case is Nike, which shuttered RTFKT in December 2024, triggering a class-action lawsuit in April 2025 in Brooklyn, New York. Led by Australian investor Jagdeep Cheema, the lawsuit alleges Nike caused RTFKT NFTs to plummet from an average of 3.5 ETH ($8,000) in 2022 to 0.009 ETH ($16) in 2025. Plaintiffs claim Nike sold “unregistered securities,” resulting in over $5 million in damages. This case highlights a broader legal issue: the unclear status of NFTs as securities, which continues to fuel litigation across the U.S. Similarly, Starbucks terminated its Odyssey NFT program in March 2024, just two years after its launch. Starbucks’ exit reflects the difficulty of integrating NFTs into everyday consumer experiences, particularly when technical complexities deter mainstream users. DraftKings also faced controversy when it shut…
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