OpenSea CEO Devin Finzer announced on Thursday that the company, one of the largest NFT marketplaces, will lay off 20% of its staff as the cryptocurrency stock has fallen significantly over the past six months.
“The reality is that we have entered an unprecedented combination of crypto winter and broad macroeconomic volatility, and we need to prepare the company for the possibility of a prolonged downturn,” Finzer said in an internal message he shared with the company, which he also posted on Twitter.
In addition to OpenSea, other crypto companies have laid off employees. Coinbase Global Inc., which operates a cryptocurrency exchange platform, announced in mid-June. they will cut 18% their employees due to the economic center of the city.
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Why is crypto falling right now?
Although Bitcoin and Ethereum stocks have risen slightly over the past two days, overall the value of the two cryptocurrencies has fallen by about 70% from their November high in November.
NFTs, or non-fungible tokens, stand for a unique digital asset, and their popularity has plummeted along with cryptocurrencies. According to OpenSea, NFT sales fell by about 75% from May to June.
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The current crash of cryptocurrencies is happening as a result of macroeconomic factors. The US Federal Reserve is raising interest rates to fight inflation, making loans more expensive and reducing investment in risky assets.
Should you buy cryptocurrency now while prices are falling?
Some experts say that now is the best time to buy cryptocurrencies because prices are low, although you should be prepared for long-term investments and understand the risks associated with cryptocurrencies and NFTs.
Compared to savings accounts and treasury bills, investing in cryptocurrencies is kind of risky because it is new technology and the value can fluctuate wildly over days or even hours.
Before investing in cryptocurrencies, experts advise prioritizing other financial investments such as pension funds and emergency accounts.
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Credit: www.usatoday.com /