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NFT Marketplace OpenSea Reduces Workforce by 20%, While Rival LooksRare Hires More Staff

The world’s largest marketplace for non-fungible tokens, OpenSea, has announced the lays offs of 20% of its workforce amid the crypto market downturn.

OpenSea Lays off 20% of its Workforce 

In a tweet on Thursday, July 14th, Chief Executive Officer of OpenSea Devin Finzer announced the job cuts. The tweet read:

While the OpenSea Chief Exec stated that the company would be letting go of 20% of its staff, it was not stated precisely how many employees would be affected by the cuts. However, in a follow-up statement, the company revealed that it would have 230 employees on its books following the layoffs.

According to Finzer, by reducing its headcount by 20%, the leading NFT marketplace will be able to maintain its five years of growth at current volumes even under a variety of potential downturn scenarios.

Finzer remarked that the discharged staff would be provided with health insurance by OpenSea “into 2023.” They will also receive accelerated equity vesting along with 12 weeks of severance.

OpenSea Suffers the Wrath of the Crypto Winter

OpenSea enjoyed remarkable growth in 2021 thanks in part to the explosive growth of non-fungible token sales. However, the company took a hit amid the unprecedented market crash, which has seen 70% of the crypto industry’s valuation wiped out.

OpenSea’s NFT sales volume on the Ethereum blockchain plunged to $700 million in June, down from the $2.6 billion recorded in May, and a far cry from January’s peak of nearly $5 billion.

On the Flipside

  • While OpenSea executed the wave of job cuts, rival marketplace LooksRare announced that it was looking to take on staff.

Why You Should Care

The OpenSea lay offs come amidst fears of a prolonged downturn as the decline in the prices of cryptocurrencies and the broader economic instability intensify.

Read about OpenSea’s latest expansion in:

OpenSea launches on Seaport to improve NFT trading quality

Users of OpenSea should be wary of Phishing attacks. Here’s what you should know:

OpenSea Reports Stolen Email Addresses in Data Breach, Warns Users About Phishing Possibility

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.