Are Dissatisfied NON-FUNGIBLE TOKEN Owners Poised to Bring Down Nike?

The swoosh has become entangled in a legal quagmire, with DIGITAL COLLECTIBLE owners demanding accountability. Nike is now facing a class-action lawsuit in Brooklyn due to the downfall of RTFKT, its prominent NFT initiative.

Investors assert that Nike promoted the platform only to abandon it—resulting in significant losses for them. Claims include false advertising and the sale of unregistered securities.

This lawsuit is putting the entire DIGITAL COLLECTIBLE industry back in the spotlight.

NFT Owners Vs. Nike

Does anyone remember NFTs? They faded from memory fast.

The initial purpose of NFTs was to establish digital ownership through the concept of making them “coin-like” or a transferable asset. Now, NFTs have transformed into the most malevolent meme since the infamous “Rick Roll.”

Central to the lawsuit is the accusation that Nike promoted RTFKT’s sneaker-related NFTs to draw in investors, only to halt operations in January 2025, leaving purchasers with depreciated or even “worthless” tokens. The plaintiffs claim Nike violated consumer protection laws by not revealing that the NFTs could qualify as unregistered securities under federal regulations.

The lawsuit states, “As the value of the Nike NFTs was linked to the success of Nike and its marketing campaigns, investors acquired this digital asset with the anticipation that its worth would rise in the future.”

Rug Pull Claims Spark Debate

When Nike decided to discontinue RTFKT, it did more than just close a platform—it eliminated the essential features that once contributed to its value. Interestingly, Trump hasn’t reached that point with his NFT holders… at least not yet.

Challenges, missions, and rewards associated with NFTs vanished in an instant.

The repercussions have been severe. Nike’s “CryptoKick” NFTs, which were once valued at 3.5 ETH (approximately $8,000) in 2022, are now plummeting to 0.009 ETH—roughly $16.

The plaintiffs claim that Nike executed a classic rug pull—capitalizing on excitement and then abandoning investors when the market cooled off.

OpenSea, the leading DIGITAL COLLECTIBLE marketplace, has already urged the SEC to exclude NFTs from securities regulations. Nevertheless, lawsuits like this illustrate that the matter is far from resolved, and the ambiguity is stifling both creators and purchasers.

In the meantime, the overall NON-FUNGIBLE TOKEN crypto market is collapsing. Worldwide sales fell 63% year-over-year in Q1 2025, dropping from $4.1 billion to $1.5 billion. Nike’s RTFKT venture, initially launched to much acclaim in 2021, concluded in closure just three years later—another victim in the diminishing junk market that NFTs have turned into.

What’s the Future of the Nike NFT Lawsuit?

With $5 million in damages being claimed and allegations of dubious trading practices spanning New York, California, and Oregon, the stakes are elevated—not just for Nike but for the forthcoming potential wave of NFTs.

The outcome of the case could establish new legal precedents, compelling companies to reconsider how they manage NFT projects and what genuine responsibilities they have towards purchasers.