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OpenSea Joins the Laying Off Spree, Cuts 20% of its Staff

The effect of crypto winter doesn’t seem to end anytime soon. Big companies like Coinbase,Crypto.com and BlockFI have been laying off their staff, sighting the adverse market conditions.

And recently, the Co-founder and CEO of a famous NFT marketplace, OpenSea, Devin Finzer, announced cutting off its staff by 20%. 

Devin announced it via Twitter, where he wrote,” Each of the people leaving has played a critical role in OpenSea’s journey.” He pointed toward the unprecedented crypto winter and broad macroeconomic instability as a reason for taking such a big step.

OpenSea will provide “general severance, healthcare coverage in 2023, and accelerated equity vesting for those who haven’t hit their cliff” to the employees who have been laid off.

In June, major crypto companies which announced layoffs were:

1.On June 14, BlockFi reduced 20% of its staff, which accounts for 170 employees. On the same day, Coinbase announced laying off 18% of its staff, meaning 1100 employees.

2.On June 11, Crypto.com announced terminating 5% of its workforce.

3.On June 2, Gemini having 1000 employees, announced laying off 10% of its staff.

The bear market has been testing the companies and brutal as employee layoff has become an inevitable measure.

What is Crypto Winter?

The Crypto market has been facing a downward trend and negative sentiments lately. It is associated with a period when the prices fall as low as 30%. Poorly performing market and negative sentiments across the crypto market is called Crypto Winter. 

Investors or HODLR have a hard time keeping up with their investments. It can be compared to a bearish market in Stocks. However, as the crypto market is not regulated, it might also mean a few of the cryptocurrencies are wiped out entirely from the market.

Afterword: 

Crypto winter doesn’t seem to be getting over anytime soon, Considering the negative sentiments in the market. So it is only a matter of time; more companies might join the layoff spree.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.