OpenSea, a marketplace for non-fungible tokens (NFTs), has cut 20 percent of its staff to save money as digital asset markets have been down for a long time. The New York-based company announced this on Thursday.
OpenSea is the biggest marketplace for non-fungible tokens (NFTs) in the world. In 2021, OpenSea’s sales grew very quickly because the rise of cryptocurrencies gave rise to a new group of crypto-rich speculators.
But the young NFT market has fallen in recent months as the prices of cryptocurrencies have dropped and investors have become less willing to take risks because of high inflation, rate hikes by the central bank, and fears of a recession.
“The reality is that we are in a never-before-seen combination of a crypto winter and wide-scale macroeconomic instability,” said Chief Executive Devin Finzer in a statement on Twitter. “We need to prepare the company for the possibility of a long-term downturn.”
OpenSea’s non-fungible token (NFT) sales on the ethereum blockchain fell to $700 million in June, down from $2.6 billion in May and a long way from the peak of nearly $5 billion in January.
NFTs are assets based on the blockchain that show who owns digital files like images and text. go to site
Finzer said that the job cuts would allow the company to keep growing at the same rate for five years even if the economy went into a downturn.