As the cryptocurrency bear market continues to hurt Web3 businesses, one of the biggest names in the non-fungible token (NFT) sector is drastically cutting headcount.
The “macroeconomic environment,” according to Dapper Labs, which developed the NFT marketplace NBA Top Shot, is to blame for the 22% staff layoffs.
“These cuts are the last thing we want to do, but they are necessary for our company’s and communities’ long-term health. We know Web3 and crypto are the future across a wide range of industries, with 1000x potential in terms of mainstream adoption and impact from here, but the current macroeconomic environment means we don’t have complete control over the timing “In a blog post, Dapper Labs Founder and CEO Roham Gharegozlou stated.
According to Gharegozlou, the firm grew too quickly, preventing it from being “as aligned, nimble, and community-driven as we need to be.” “Our organization’s refocusing will allow us to achieve every milestone sustainably: Web3-native, mobile-first, and community-driven,” Gharegozlou wrote.
At the same time, on-chain metrics reveal that consumers are losing interest in Dapper Labs’ offerings, which is consistent with a broader pattern of investors avoiding NFTs. Compared to October 2017’s sales volume of $40.8 million, October 2018’s sales volume of $2.6 million on NBA Top Shot is a significant decrease. At the height of the NFT craze in February 2021, the NBA Top Shot marketplace saw 80,822 different buyers make 1.2 million transactions worth $224 million.
The recently introduced NFL All Day collectibles market also saw a drop in volume in October, from $14 million the previous month to $6 million. The layoffs at Dapper Labs are the most recent example of companies decreasing their workforce. BitMEX, DCG, and NYDIG are among the companies that have reduced headcount in recent weeks to cope with the bear market.
Marine Corps Veteran-turned-national-tv-personality Eric Mitchell is a world leading expert in sports media, regularly appearing on the world’s largest outlets from BBC, MSNBC, Fox News, Bloomberg, CNN and more. His signature blend of snark and industry expertise landed him columns at none other than RollingStone, GritDaily, PopWrapped, Disrupt — and most recently — Editor in Chief at NFT Today Magazine. When he’s not making media appearances or running his empire at LifeFlip Media, he can be found entertaining his thousands of loyal followers on social media through his authentic filter-free content.