A woman walks past a store of the sporting goods retailer Nike Inc at a shopping complex in Beijing, China March 25, 2021. REUTERS/Florence Lo - RC28IM9OQ5ZY
Last month, Nike announced a virtual world modelled after its headquarters on video game platform Roblox. (Credits: Reuters)

On Monday, sportswear heavyweight Nike announced it had bought virtual sneaker company RTFKT (pronounced artifact), as the sportswear giant expands its footprint into the fast-growing ‘metaverse’.

A metaverse is a shared virtual space where we all may be living, working, playing and interacting with one another via virtual and augmented reality devices in the near future.

RTFKT is a startup that leverages cutting edge innovation to deliver next-generation collectibles called NFTs, that ‘merge culture and gaming’.

The company led by Andreessen Horowitz raised a £6.4 million seed round back in May that valued the company at nearly £25 million.

RTFKT recently made news with one of the most talked-about NFT projects called CloneX— an avatar partnership with artist Takashi Murakami. Since its initial drop less than three weeks ago, the project has already seen nearly £49 million in transaction volume according to crypto tracker CryptoSlam.

In a statement, Nike called RTFKT ‘a pioneering and innovative brand that redefines the boundaries of physical and digital value to serve their broad community of creators’.

‘This acquisition is another step that accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture,’ said Nike’s CEO, John Donahoe, in a statement. 

‘We’re acquiring a very talented team of creators with an authentic and connected brand. Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and extend Nike’s digital footprint and capabilities,’ he added.

‘This is a unique opportunity to build the RTFKT brand and we are excited to benefit from Nike’s foundational strength and expertise to build the communities we love,’ says Benoit Pagotto, one of RTFKT’s co-founders. 

‘Nike is the only brand in the world that shares the deep passion we all have for innovation, creativity and community, and we’re excited to grow our brand which was fully formed in the metaverse,’ said Pagotto.

It’s unknown how much Nike paid for the company as the terms of the deal have not been disclosed.

Earlier this month, its major competitor Adidas expanded into the Metaverse by collaborating with Bored Ape Yacht Club, gmoney NFT, and PUNKS Comic.

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