Nike (NKE) is now battling a $5 million class-action lawsuit tied to its sudden shutdown of its NFT platform, RTFKT. Investors claim the sportswear giant pulled the rug out from under them—both figuratively and financially—leaving their digital assets nearly worthless.
NFT Investors Claim Nike Pulled the Rug
The lawsuit, filed in Brooklyn federal court, alleges that Nike promoted its RTFKT NFTs as valuable, tradeable digital assets, only to pull the plug on the project without warning. According to Reuters, lead plaintiff Jagdeep Cheema argues investors wouldn’t have touched these NFTs if they knew Nike planned to shut down RTFKT or that the tokens might be considered unregistered securities.
These were no cheap collectibles. When Nike first launched its sneaker-themed NFTs back in April 2022, they were selling for an average of 3.5 Ethereum—roughly $8,000 at the time. Fast forward to this month, and those same NFTs are trading for around 0.009 Ethereum, or just $16, according to data from OpenSea.
NFT Market Takes a Hit as Nike Pulls Out
Nike acquired RTFKT Studios in 2021, branding it as the future of collectibles that blend gaming, culture, and digital ownership. But in January 2025, Nike shut down the platform, citing a shift in focus while promising that RTFKT’s innovation would “live on through countless creators.” For investors holding these digital tokens, that shift meant the floor fell out.
The broader NFT market hasn’t helped either. Sales plummeted 63% year-over-year in Q1 2025, dropping to $1.5 billion from $4.1 billion in the same period last year.
Lawsuit Questions NFT Legal Status
At the core of this case lies a bigger question: Are NFTs securities? U.S. courts haven’t made a final ruling, but Nike’s investors argue the tokens’ value depended entirely on the company’s success, likening them to stocks. That debate could change up how NFTs are regulated.
Is NKE Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a consensus Moderate Buy rating for Nike, based on 17 Buy and 14 Hold ratings. With that comes an average NKE price target of $80.74, representing a potential 40% upside for NKE stock.
