The crypto market has cooled down in recent months, reflecting the latest layoffs. OpenSea, the digital collectibles marketplace, has let go of about 20 percent of its workforce. The company announced the layoffs on Thursday, the 14th of July, 2022.
In February, the company had just received an additional $300 million in funding and was valued at $13.3 billion, making it the dominant player in selling the NFT tokens.
While the crypto market has been in a slump lately, OpenSea is facing several issues that extend beyond the fall in prices of many NFTs:
In January 2022, a bug allowed attackers to sell high-priced items from their owners for a fraction of the listed price.
In February, $1.7 million worth of NFTs were stolen in a phishing attack.
Former Product Chief Nate Chastain has been arrested for insider trading. He was fired last autumn for misusing his access to buy NFTs before they were released on OpenSea's main page.
In June, an employee at the email delivery vendor used by OpenSea stole the email addresses of its users. This puts clients at a higher risk of being targeted by phishing attempts.
Yet, some of the most valuable crypto companies have recently made headlines for massive layoffs. Blockchain.com, Coinbase, Celsius Network, Gemini, and others are among these market players.
Crypto's top venture capitalists have said that the talent entering the crypto space is one of the biggest reasons they're bullish on the space. However, as crypto giants continue to make huge layoffs, it’s unclear how much of that talent is being held onto.