OpenSea will lay off 20% of its workforce.

OpenSea has become the latest victim of the ongoing crypto winter, deciding to reduce its workforce.

According to the Wall Street Journal (WSJ), the non-fungible token (NFT) marketplace has announced that it will lay off one-fifth, or 20%, of its workforce.

OpenSea, one of the largest marketplaces for NFTs, has indicated that approximately 57 people will be laid off, despite the fact that it now employs 230 people.

According to TechCrunch, the company's LinkedIn page lists 769 employees, implying that approximately 150 people lost their jobs.

Chief Executive Devin Finzer stated in an internal memo to employees, which was also shared on Twitter, that the company would provide severance and healthcare coverage to those laid off until 2023. Finzer also mentioned that accelerated equity vesting will be available.

“The changes we're making today position us to maintain multiple years of runway under various crypto winter scenarios (5 years at current volume) and give us high confidence that we only have to go through this process once,” Finzer explained.

The layoffs contradict Finzer's claims in January following the receipt of $300 million in venture capital funding, when he stated that the funds would be used to hire 90 new employees and establish a fund for creators.

As the cryptocurrency price crash continues to wreak havoc on digital-asset firms, the market capitalization of digital currencies has fallen below $1 trillion, down from nearly $3 trillion in late 2021, according to CoinMarketCap data.

The layoff comes at a time when the NFT market is experiencing a decline in user base. The decline began in June, when a former employee was charged with fraud and money laundering by the Justice Department. According to the WSJ, the incident was the first instance of insider trading in digital tokens.

Other crypto firms that have laid off employees as a result of the market downturn include Coinbase Global Inc., which reduced staff by 18 percent in mid-June, and the firm's shares have fallen by nearly 79 percent this year.

According to Blockchain.News, crypto exchange Crypto.com and lending platform BlockFi also announced plans to cut over 400 jobs globally in early June due to market pressures.

Crypto.com announced a 5% workforce reduction, or approximately 260 employees, while BlockFi announced a 20% workforce reduction, or approximately 170 people.

According to The Block data, the NFT market peaked in January with $16.6 billion in monthly volume, a significant increase from more than $350 million in July 2021. However, due to a drop in activity in the digital asset sector, it fell to around $1 billion in June.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

iOS: t.ly/UUCj

Android: t.ly/cfYt