Non-fungible token marketplace OpenSea is reducing its workforce by about 20%.
According to a note shared by OpenSea CEO and founder Devin Finzer on Thursday, the platform is laying off some of its workforce, citing “unprecedented combination of crypto winter and broad macroeconomic instability.”
“We need to prepare the company for the possibility of a prolonged downturn,” Finzer wrote. “The changes we’re making today put us in a position to maintain multiple years of runway under various crypto winter scenarios (5 years at current volume), and give us confidence that we will only have to go through this once.”
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The CEO says the company will help employees who are losing their jobs in the following ways.
“For those leaving us, we’ll be providing generous severance, healthcare coverage into 2023, and accelerated equity vesting for those who haven’t hit their cliff. We’ll also be helping with job placement and opening our personal networks to support them however we can,” the message continued.
OpenSea is one of the largest NFT marketplaces in the world. Since its launch in 2017, the platform has amassed over $10 billion of NFT transactions, according to CoinMarketCap.
Representatives for OpenSea did not immediately respond to MarketWatch’s request for comment on this story.
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An NFT is a verifiable digital asset vouchsafed by blockchain technology. NFTs are not exchangeable like currencies, as each is unique and can’t be replicated.
NFTs use blockchain, the technology ledger backing cryptocurrencies like bitcoin
which are databases of linked information to record ownership or transactions of a product. While NFTs use blockchain, they are not currencies and should be treated more like rare trading cards than money.
The layoffs at OpenSea come as crypto prices have continued to crash. Prices for many cryptos are down over 70% from 2021 highs. The total market cap for all crypto nearly hit $3 trillion during parts of 2021, but hovers just below $1 trillion as of July 2022.
See: Coinbase CEO says company has ‘no risk of bankruptcy’
See also: Bitcoin price dip ‘absolutely’ a buying opportunity, Michael Saylor says
Recent crypto market conditions have not only led to a dramatic decrease in crypto prices, but also impending layoffs at crypto exchanges. Crypto exchange Coinbase
laid off 18% of its employees, BlockFi says it plans to lay off 20% of its employees and Gemini plans to lay off 10% of its employees.