A lot has changed and developed in the world of NFT when you weren’t looking. NFTs or Non-Fungible have their marketplaces where investors are likely to buy and sell and even auction their own NFTs. And these marketplaces, like all marketplaces, are constantly jostling for space in the users’ minds. And one of the best ways to do that is to become their go-to source for rarity (rare) NFTs. And one of the best marketplaces to find them is OpenSea. However, the company was in the news for the wrong reasons recently. Owing to a slump, the company was forced to cut 20% of its active workforce. A massive move, according to MetaSoccer, who explains its implications in this article.
Business is an ever-uncertain and unpredictable entity. Even the most seasoned and well-meaning businessmen are forced to make certain decisions that keep the company afloat. The company which becomes an entity unto itself and develops a life of its own can often force its creators to make tough decisions. In the wake of a prolonged slump in the digital asset market, OpenSea was forced to lay off 20% of its workforce. MetaSoccer explains, “It was done to keep the company afloat. The dwindling market is the cause for such a sweeping layoff. And OpenSea’s founders are none too happy about it. The company, often seen as the best and largest NFT marketplace, has every reason to invest in its workforce. That’s exactly what Chief Executive Devin Finzer said in his letter addressed to the employees being laid off. They recognized the role every individual has played and, in return, offered a generous severance check, healthcare coverage unto 2023, and an accelerated equity vesting. Additionally, they also aim to help their ex-employees with placements and openings. As a business, OpenSea has shown how it’s done. Nobody likes to let go of a good workforce, but when the time comes, there’s a way to do it.”
It’s hard to imagine that the same company saw high sales growth in 2021 due to a sudden rise of crypto-rich investors. A year later, a slump in the market and collapse in cryptocurrencies made the same investors altogether dump these “risky assets” and opt for something else. MetaSoccer says, “Statistically speaking; it’s a grim picture as in just a month, OpenSea’s sales volume went from $2.6 billion in May 2022 to $700 million in June. What’s worse is that in January, the company was enjoying a $5 billion peak. There was no knowing what was to come. Yet the market, unpredictable as always, did it again. The layoff, however, could help the company maintain a 5 years growth at current volumes and use that time to fix all the issues that made them succumb to the slump. There’s no doubt that it’s a difficult time for OpenSea since the fall came suddenly and unannounced, but their decision to help those leaving will indeed blunt the blow and help them generate a positive image for the future.”
Here’s wishing OpenSea good luck as they recover.