NFT marketplace OpenSea to slash 20% of jobs amid ‘crypto winter’

A non-fungible token (NFT) displayed on the website of NFT marketplace OpenSea is seen through a magnifying glass, in this illustration picture taken February 28, 2022. REUTERS/Florence Lo/Illustration/File Photo

July 14 (Reuters) – Non-fungible token (NFT) marketplace OpenSea said on Thursday it would cut about 20% of its workforce to reduce costs in the face a prolonged slump in digital asset markets.

“The reality is that we have entered an unprecedented combination of a crypto winter and broad macroeconomic instability, and we need to prepare the company for the possibility of a prolonged downturn,” Chief Executive Devin Finzer said in a statement on Twitter.

NFTs are digital assets that exist on a blockchain and include everything from artwork to text and tweets. read more

OpenSea, the largest NFT marketplace, saw explosive sales growth in 2021 as the rise in cryptocurrencies created a new group of crypto-rich speculators.

But the NFT has market slumped in recent months, as cryptocurrency prices collapsed and investors ditched risky assets.

OpenSea’s NFT sales volume on the ethereum blockchain plunged to $700 million in June, down from $2.6 billion in May and a far cry from January’s peak of nearly $5 billion. read more

Finzer said the job cuts would allow the company to maintain 5 years of growth at current volumes under various potential downturn scenarios.

Other crypto- and digital asset-focused companies, including Coinbase Global (COIN.O), have been forced to cut jobs in recent weeks. read more

(This story refiles to fix dateline)

Reporting by Lisa Pauline Mattackal in Bengaluru and Elizabeth Howcroft in London; Editing by Devika Syamnath

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