The leading non-fungible token (NFT) marketplace, OpenSea, has announced its intentions to reduce its workforce by half as part of a significant restructuring effort.
Devin Finzer, the CEO of the platform, took to Twitter to share that the company is undergoing substantial transformations to focus on the development of OpenSea 2.0. He mentioned that they are transitioning to a more compact team while building a new foundation, and as a result, they are bidding farewell to a number of OpenSea team members.
Finzer expressed gratitude towards the affected OpenSea employees and acknowledged that such changes are always challenging. He emphasized that these changes are being made with the community’s best interests in mind.
According to Finzer, OpenSea’s shift in direction has been prompted by user feedback, as they have felt like followers rather than leaders in the industry. He emphasized the company’s desire to operate with swiftness, quality, and strong conviction in order to make more impactful decisions.
Consequently, OpenSea has realigned its team to better support the forthcoming major product upgrade, OpenSea 2.0.
A company spokesperson confirmed that affected employees will receive certain benefits, including an accelerated schedule for equity vesting, four months of severance pay, and six months of continued access to health services.
OpenSea, once the largest marketplace during the NFT market surge, raised $300 million in January 2022, with a valuation of $13.3 billion at the time. However, the gradual downturn in the market has impacted its standing. The platform faced criticism for initially removing creator royalties, despite its substantial funding, which led to a policy change this year. This latest round of company restructuring follows a previous set of layoffs in July 2022.
NFT’s Downward Trend
According to data from the prominent crypto gambling platform, DappGambl, a significant majority of NFTs are currently considered “worthless.”
The report, published in September, revealed that out of the 73,257 NFT collections identified, a staggering 69,795 of them have a market cap of 0 Ether (ETH). In other words, 95% of NFT holders are currently holding onto investments that have no market value. This underscores the high-risk nature of NFTs and emphasizes the importance of conducting thorough due diligence before investing.
Furthermore, the report points out that there isn’t sufficient demand to match the supply of NFTs. It states, “Of the collections we identified, only 21% were fully owned, meaning that 79% of all NFT collections—equivalent to nearly 4 out of every 5—have remained unsold.” This suggests that a significant portion of NFTs are struggling to find buyers in the market.