OpenSea has cut its employee headcount by 20%, according to a tweet by founder and CEO Devin Finzer. Approximately 50 employees are being let go.
In the tweet, Finzer blamed the action on the ongoing “crypto-winter.”
OpenSea is one of the largest NFT, or non-fungible token, marketplaces in the world. Launching in 2017, the platform has grown rapidly reporting over $20 billion in volume from over 80 million different NFTs.
Finzer said they have been through a crypto winter before and their balance sheet is strong indicating they have sufficient funds to weather the downturn. Finzer claimed if things remain the same they have a 5-year runway under “various crypto winter scenarios.” NFTs, along with the broader crypto asset marketplace, have tanked. Bitcoin has lost over half of its value since the beginning of the year and 2/3s of its value from its all-time highs in 2021.
Employees that have been let go will be receiving a severance package that includes healthcare coverage into 2023 as well as job placement assistance.
Other Fintechs have cut employees as the economy has slowed with fast-rising inflation and rising interest rates. Some observers believe things will get even worse as interset rates jump higher and more companies look to cut costs to stay afloat.