Despite the significant depression in the cryptocurrency markets, many top players were hesitant to say that the good times are over for now, but as the NFT market announces the layoff of about 20% of the company’s employees today, the leading crypto startup CEO is not shy about words.
“…[T]The reality is that we have entered an unprecedented combination of a crypto winter and broad macroeconomic volatility, and we need to prepare the company for the possibility of a prolonged downturn,” OpenSea CEO Devin Finzer said in a message he shared with staff, which he posted publicly on Twitter. too.
The company did not specify exactly how many employees were affected by the decision, but the company’s LinkedIn page indicates that the company currently has about 750+ employees. Finzer says affected employees will receive severance pay and health insurance “until 2023,” as well as accelerated vesting.
The layoffs raise questions about the company’s aggressive growth tactics and how they approached sustaining the breakneck growth of the NFT sector. In a memo to employees, Finzer says the company has years of work on these changes ahead of it, unless things get even bleaker.
“The changes we are making today give us the ability to maintain the runway for several years under various crypto winter scenarios (5 years at current volume) and give us confidence that we will only have to go through this process once. writes Finzer, later adding: “Winter is our time to build.”
OpenSea has been one of the main beneficiaries of the 2021-2022 crypto bull run, raising hundreds of millions of investor dollars, most recently at a $13.3 billion valuation. This rise has not been without drama: Last month, an executive at the company was arrested on charges of insider trading in the wake of the NFT trading scandal.
Leading Crypto VCs have said that the talent entering the crypto space is one of the main reasons they are bullish, but as the crypto giants continue to lay off people, it is unclear how much of that talent is being held back.
Credit: techcrunch.com /