OpenSea Announces Workforce Downsizing Ahead of OpenSea 2.0 Launch

The recalibration is driven by customer feedback, according to Finzer, who conveyed a sentiment of OpenSea falling behind its leadership status. “And that’s not who we want to be. We want to move with speed, quality, and conviction to make more meaningful bets.”

OpenSea is realigning its team structure to be in sync with the anticipated launch of OpenSea 2.0, a significant product evolution.

A representative of OpenSea stated that outgoing staff would be provided with a package of benefits, including an accelerated equity vesting schedule, a severance package spanning four months, and health benefits extending for half a year.

In January 2022, during the height of the NFT market surge, OpenSea had a fundraising round that brought in $300 million, placing the company’s valuation at $13.3 billion. Nevertheless, the subsequent downturn in the NFT market has impacted its standing.

The marketplace recently faced pushback for removing creator royalties, prompting a policy reversal this year. This round of organizational restructuring comes after a prior round of layoffs in July 2022.

Downtrend in NFT Valuations

Data from DappGambl, a key crypto analytics firm, shows a stark depreciation in NFT values.

“Of the “73,257 NFT collections we identified, an eye-watering 69,795 of them have a market cap of 0 Ether (ETH).”

Released in September, the report accentuates that 95% of NFT assets are now essentially valueless, shedding light on the volatile and speculative nature of the NFT market and underscoring the importance of rigorous due diligence.

The market is also experiencing an oversupply issue, with the report adding, “Of the collections we identified, only 21% were fully spoken-for, in terms of having 100%+ ownership,” meaning that “79% of all NFT collections – otherwise known as almost 4 out of every 5 – have remained unsold.”