NFT Marketplace Opensea Cuts 20% of Staff as Crypto Job Losses Increase

NFT Marketplace Opensea Cuts 20% of Staff as Crypto Job Losses Increase

Following Coinbase and Gemini, OpenSea is now prepared to fire its staff. Even so, the business even acknowledged being understaffed to deal with the enormous NFT load last year. 

In response to the most recent slump in the cryptocurrency market, OpenSea, the largest non-fungible token marketplace, is prepared to let go of at least 20% of its workforce. According to LinkedIn, the company employs close to 769 individuals, so a 20% reduction in the workforce would result in the loss of more than 150 jobs. Devin Finzer, the company’s CEO and co-founder, directly disclosed this information in a Twitter tweet. Additionally, he was observed praising the efforts and commitment of each and every worker who was slated for termination.

When the crypto capital initiative was at its height in January, OpenSea was valued at a staggering $13.3 billion. And now that there have been layoffs, the business is undoubtedly feeling under the weather. They are one of the most popular NFT marketplaces, and according to blockchain data tracker DappRadar, they have logged $31 billion in sales. The recent inflation and recession that hit the United States resulted in a sharp decline in NFT demand, which undoubtedly had an effect on even the best players. According to estimates from DappRadar, OpenSea saw a 50% decrease in sales during the past month, and the average price of NFT fell by over 40%.

Although on the Ethereum blockchain, their NFT sales volume increased to $700 million in June, about $2.6 million less than in May.

Even if the corporation intends to fire employees, it is well aware of how to support people in trying circumstances. For the year 2023, they promised to pay severance and take care of the health insurance needs of all the fired employees. In his tweet, the CEO also added that the move was made to ensure that the business will be able to withstand the long-term effects of the crypto winter. In addition to eliminating jobs, OpenSea has chosen to switch to the Seaport protocol that would help with cutting gas fees.

The company’s overall workforce decline merely indicates how difficult it is for them to exist. According to INSIDER, several of the companies in the cryptocurrency market ordered 1700 workers to leave their positions in June.

Even though OpenSea has made the decision to fire some of its staff, it is still the most well-known company in the NFT industry and continues to have a large number of traders in comparison to the others.

So, why is there a decline in crypto suddenly?

The value of various cryptocurrencies has substantially decreased during the last few months, falling by over 70%. NFTs, or non-fungible tokens, are distinct digital assets that have grown in popularity alongside Crypto. Not only did cryptocurrencies experience a loss during the current crypto winter, but NFTs also experienced a significant decline of approximately 75%. The primary cause of this abrupt decline is macroeconomic variables. In order to combat inflation, the U.S. Federal Reserve is regularly raising interest rates, which results in more expensive loans and fewer investment possibilities.

What are the latest updates on OpenSea?

As the “crypto winter” spreads and impacts the key market players, businesses have begun to roll out new features to pique the interest of their existing clientele. Recently, OpenSea unveiled its Solana Launchpad as part of its “multi-chain future” concept, which might let users access NFTs on many different blockchains.

There are still a lot of roles available in the blockchain and digital currency industries, despite the fact that many crypto organizations around the world are in the process of making layoffs. Exchange behemoths like Kraken, FTX, and Binance have chosen to take the opposite tack and will be hiring additional staff in the coming months. The co-founder of Binance told Fortune that there are still many unfilled positions in the business. In terms of engineers, products, marketing, and business development, we presently have more than 2000 posts open, Yi stated.

Although it might be a setback, we think that cryptocurrencies and NFTs will endure. What do you think? Do let us know.

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