OpenSea fires 20% of its employees due to the collapse in NFT sales

Even the most popular NFT sales platform is suffering from the “crypto winter”. He announced he was separating from a fifth of his employees.

Nothing is going well for cryptocurrencies at the moment. Prices have fallen since the beginning of 2022, repeated failures … The whole sector is holding its breath and awaiting the end of the ” crypto winter », The name given to this« bear market (understand: a market in crisis), hoping not to be part of the growing number of companies that fail.

In this time of crisis, NFTs are not spared. OpenSea, the best known and most popular sales platform non-fungible tokens (NFT), just announced on July 14, 2022 that it is separating nearly 20% of its employees. A worrying sign for the entire sector.

The homepage of the OpenSea platform. // Source: OpenSea

Blame it on “crypto winter”

The bad news was announced by Devin Finzer, co-founder and leader of OpenSea, on his Twitter account. ” We made the terribly sad and difficult decision to reduce our team size by 20% and today we say goodbye to many of our friends. He did not say how many people were affected by the move, but OpenSea told The Block newspaper that there are now 230 employees left with the company.

The decision was dictated by the “crypto winter” and “ global macroeconomic instability “, According to Devin Finzer. “ We need to prepare the company for the possibility of a long recession “He said. But what the executive doesn’t say in his post is that NFT sales are plummeting.

According to data from Nonfungible, a site specializing in the analysis of these digital assets, NFT sales have been declining since the beginning of the year – and this despite a peak in sales recorded in May, due entirely to the sale of a new Bored Ape. Yacht Club Collection.

The state of the NFT market as of 15 July 2022. // Source: Nonfungible

Slow sales

Above all, it is not only the number of sales itself that decreases, but also the total value of the NFTs traded, a very important indicator that shows the health of the market. While in April, for just over 61,000 NFTs sold, the total amount of sales was 83 million dollars, in this month of July, for the same quantity, only 29 million dollars were raised.

And inevitably, the various NFT sales platforms suffer from this overall decline. Data from several analysts, aggregated by The Block, show the extent of the disaster. OpenSea went from a total of $ 4.97 billion in sales in January 2022, its largest month on record, to 686 million in June 2022. For rival LooksRare, the damage is even worse: it went from a total of 11 billion in sales. when it launched in January 2022 at just 214 million in June.

It’s not just OpenSea that suffers. All platforms are inactive. // Source: The Block

In the months or even weeks to follow, it would therefore not be surprising to learn that other NFT platforms are also making the decision to lay off some of their workforce.

The end of NFTs has already been predicted several times. The first time, in June 2021, when the market had undergone a first transformation and the collectible tokens (such as the CryptoPunks or the Bored Apes) had taken precedence over “artistic” NFTs (such as the Beeples coin which sold for a record $ 69 million). In May 2022, analysts had once again announced the death of the NFTs, even as the Bored Apes broke records. But this time, the combined effect of the crypto winter and ” global macroeconomic instability as Devin Finzer says, he could get the better of it non-fungible tokens.

Leave a Comment