OpenSea, the world’s largest marketplace for nonfungible tokens, is cutting about 20 per cent of its staff, the latest in a series of layoffs that’s rocked the crypto industry as digital-asset prices continue to plummet.
Chief executive Devin Finzer announced the job cuts in a tweet on Thursday, and warned of a prolonged downturn amid the collapse in crypto prices and broader economic instability. OpenSea has 769 employees, according to LinkedIn. The cuts would eliminate more than 150 jobs. The company didn’t immediately respond to a request for comment.
The layoffs are big blow for OpenSea, which was valued at more than $13.3 billion (U.S.) in January during the height of the venture capital boom in crypto. OpenSea joins other crypto firms that have since announced major job cuts, including Coinbase Global Inc., Gemini Trust Co., Crypto.com and BlockFi Inc.
OpenSea is the top NFT marketplace by trading volume, having done more than $31 billion in sales all-time, according to blockchain data tracker DappRadar.
But demand for NFTs has dropped sharply during the most recent downturn. OpenSea has seen its sales cut in half over the past month, with the average price of an NFT on its marketplace dropping by nearly 40 per cent, according to DappRadar. Even blue-chip NFT collections, such as Bored Ape Yacht Club and CryptoPunks, have felt the chill of the so-called crypto winter.
OpenSea plans to provide severance and health care coverage into 2023, and accelerate equity vesting for employees who were let go, according to Finzer.
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