The platform in turn has experienced the inversion of the cryptocurrency market.
“It’s a difficult day for OpenSea, because we have to separate ourselves from 20% of our team”Devin Finzer, co-founder and CEO of the largest purchasing platform NFT, announced on Twitter Thursday. In a note published on the social network, Devin Finzer justifies a choice imposed by “An unprecedented combination of a ‘crypto winter’ [crash du marché des cryptoactifs] and global macroeconomic instability ”. The company says the move will help it withstand further market shocks for at least five years.
OpenSea had largely benefited from the boom in the NFT market in 2021, with a volume of transactions multiplied by 600. The American company had raised a total of 400 million dollars in a few months and had recorded a valuation of 13.3 billion dollars in January. 2022. In the same month, the platform had recorded more than $ 2.4 billion in NFT purchases and resales per week, transactions on which it charges a 2.5% fee.
Wave of layoffs among cryptocurrency players
Opensea is experiencing a reversal in the cryptocurrency market, which has seen Bitcoin’s value plummet 70% from its peak in November 2021 when it was worth $ 69,000 each. There are also drops of 15 to 20% among the other major cryptocurrencies on the market. All of this would be due to inflation and rising interest rates. This “crypto winter” has led to waves of layoffs among the major players in the sector such as Coinbase, BlockFi, Gemini or Crypto.com.
The demand for NFTs also decreased significantly. This resulted in OpenSea’s sales volume being halved last month. Some selling prices drop on popular collections, such as CryptoPunks or Bored Ape.
The number of people fired at OpenSea has not been revealed, but the company told TechCrunch media that 230 employees will remain in the company after this wave of departures. “For those who leave us, we will offer a generous severance package, medical coverage until 2023 and accelerated vesting of shares for those who have not met their goal. We will also help them find work and open our personal networks to support them as we can ”.continues the note.