Nike has closed its RTFKT NFT division, facing a $5 million lawsuit and signaling a shift away from digital assets. The move follows declining NFT values, sparking concerns among investors and community members alike. RTFKT, acquired by Nike in 2021 for its innovative digital fashion and NFTs, will be winding down operations by January 2025. While the shutdown impacts NFT holders without compensation plans announced, experts highlight a broader trend of scaling back on digital ventures amid cooling market conditions. This event underscores the challenges facing the NFT industry as legal disputes emerge, potentially influencing future corporate strategies in the realm of digital investments.