Evidently, a prominent depression is seen to hit crypto markets, and this week NFT marketplace OpenSea announced its way of dealing with it. Though various players have not yet addressed this downturn, OpenSea went on to lay off about 20% of its staff on Friday, July 15.
Devin Finzer, the chief executive of OpenSea visibly addressed the step quite clearly as he took to Twitter to announce the job cuts. He stated how the market has clearly ended up in a ‘crypto winter and broad macroeconomic instability.’ Further, he noted how it is essential that they get the company ready for a ‘downturn’ that could last a while. However, the company is yet specify has to many workers were exactly laid off in this round of job cuts.
Today is a hard day for OpenSea, as we’re letting go of ~20% of our team. Here’s the note I shared with our team earlier this morning: pic.twitter.com/E5k6gIegH7
— Devin Finzer (dfinzer.eth) (@dfinzer) July 14, 2022
The CEO specified how the employees affected would get health insurance all the way into next year. Along with it, severance of at least twelve weeks, as well as accelerate equity vesting. These job cuts give rise to questions regarding the intense growth tactics of OpenSea. Additionally, about how they dealt with the sustainability of the NFT market’s current growth. Moreover, as he addressed the staff, he stated how OpenSea had years of runway in front of it with these alterations, hoping the situation does not get worse.
“Winter is our time to build.”
Later on, he wrote how this step they are taking place them in a particular position. Mainly, for the maintenance of several years of runways in the circumstance of many scenarios comprising such crypto winters- five years. Along with it, he noted how it gives OpenSea ‘high confidence’ that this is the only instance that they would have go through such a process.
Clearly, this crypto trading platform has maintained its position of being one of the top beneficiaries of the 2021-2022 bull run of crypto. Rather recently, it had raised hundreds of millions in form of investor dollars, at a valuation of $13.3 billion. However, this was rather eventful as an OpenSea executive was arrested in June on charges of insider trading following an NFT trading scandal.
For a while, top venture capitalists of crypto noted that talent coming to crypto sectors contributes to its immense success. However as crypto giants go on to conduct such job cuts, we wonder as to exactly how much of these talents remain in the field.