NFT Strike Hits Mainstream—Lawsuits and Declining Volumes Drive Nike and Others to Retreat. Major brands like Nike, Starbucks, and DraftKings are pulling back from NFTs amid market collapse, legal risks, and consumer disappointment.

Lawsuits against Nike and DraftKings highlight regulatory uncertainty and financial risks associated with unregulated non-fungible token projects.

Brands are shifting towards sustainable digital assets that rely on utility, blending physical experiences with blockchain technology. After brands like Nike, Starbucks, DraftKings, Puma, and Reebok eagerly joined the non-fungible token craze, they are now scaling back or completely abandoning their projects.

This shift raises questions about the sustainability of non-fungible tokens in major industries and illustrates the challenges of integrating blockchain-based assets into long-term business strategies.

The Non-Fungible Token (NFT) Market Landscape