Opensea lays off 20% of staff, fears crypto winter
World’s top NFT marketplace OpenC Crypto lays off 20 percent of its workforce as a combination of winter and broader macroeconomic instability triggers a downturn for crypto companies.
We are all well aware of the impact of crypto winter on the blockchain along with the related NFT industry. Furthermore, we have seen most digital asset valuations, NFT transactions decline, and crypto companies forced to declare bankruptcy.
However, we sometimes lose sight of the fact that behind all the avatars, breakthrough innovations and technologies are workers. It’s people like you and me who have to pay the bills.
Crypto Winter
The main reason for OpenC’s layoffs is the continued bear market downtrend, followed by new competitors. They are not alone in such layoffs. Two recent entrants to the NFT market have also announced job cuts.
Take GameStop. It opened its NFT platform after laying off staff days before its launch. However, Coinbase which recently opened its own marketplace, announced the departure of 1100 employees last month.
Additionally, a catastrophic drop in daily NFT sales on the OpenSea NFT Marketplace has seen daily volume drop by more than 75% since the beginning of May. According to data from Dune, May 1 dollar sales totaled more than $476 million, while July 15, by comparison, saw sales total $14.61 million.
Furthermore, this year has seen some serious competition enter the sphere, including Luxair. New competition, combined with the prospect of a prolonged recession, necessitated reductions in staffing levels.
Tough decisions have been made about the OpenC staff
in recent times Post on TwitterOpenSea co-founder and CEO Devin Finger shared the note that affected employees received.
He began by thanking the people who left for their important roles in OpenC’s journey to the top of the industry.
Employees affected by the retrenchment, he said, were contacted individually before the memo was released. He also announced that employees will receive a generous severance package.
The package includes continued health coverage until 2023 and accelerated equity vesting. The company will also make its network available to assist in job placement.
Taking action to secure the future
The hard reality is that the crypto winter could be a long-drawn affair and more pain could be coming. The layoffs help the company prepare for what looks like lean times ahead.
Finzer wrote that they “made these difficult decisions for us to maintain a multi-year runway under various crypto winter conditions.” “We only have to go through this process once,” he added.
Confidence in the future
All is not doom and gloom. The thinking at OpenSea NFT Marketplace is that during this period of volatility, we will see “an explosion of innovation and utility in NFTs.”
They will use this crypto winter to “lay the foundation for a new peer-to-peer economy” that they believe will be the world’s largest marketplace.
Think later
The layoffs at OpenSea will be followed by more job losses at other companies in the coming months. We wish those affected by these job losses a speedy return to the workforce.
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