Dapper Labs Downsizes For the 3rd Time Amid Dull NFT Market
Roham Gharegozlou, the Chief Executive Officer of Dapper Labs, informed via Twitter that the company laid off around 51 employees following the NFT market downtrend.
The recent layoff is the third round of lowering of employees by Dapper Labs. Roham said the third round of layoff includes full-time staff and C1 contractors.
He added that “the decision was incredibly difficult because amazing people were affected,” but the decision was initiated to ensure a lean and efficient company.
Gharegozlou said Dapper Labs and Flow remained ‘well capitalized.’
“With this restructure we have made the business more lean, which is going to let us do the right thing for our fans and grow our communities in the most healthy ways possible,” he added.
The relevant data states that the recent cut represents 12% of the company’s total employees strength. Besides this, Dapper Labs reduced its employees by 22% in November after the unprecedented collapse of FTX and 20% in February 2022.
Dapper Labs is known for its contribution to the development of NFTs and NFT trading. The most popular products developed by the company are CryptoKitties and NBA Top Shot.
Crypto and NFT market analysts believe that lowering employees is the reflex action of the NFT market downtrend and decreasing adoption of digital collectibles.
Ongoing Scenario of NFTs Market Place
Data from OpenSea states that popular NFTs such as Xtreme Pixels, Meta Kongz Official, Danks, Acrocalypse, Maschine, Milady Maker, Nakamigos, and numerous others lost more than 70-96% of their floor prices.
Donald Trump, former United States president and candidate for the 2024 election, brought the NFT trend on political grounds. He released the Trump Trading Cards Collection in December 2022, which quickly garnered significant attention. The 45,000-piece collection stacked over $4 MIllion within 12 hours.
According to the Washington-based newspaper, The Politico, Donald Trump’s presidential campaign has raised $35 Million during Q2 2023. However, the actual amount raised in the campaign is still undisclosed. His political rival, Florida Governor Ron DeSantis, raised $8 Million in the first 24 hours of his campaign.
Another data aggregator, Dune Analytics, reported a sharp drop in buyers and sellers in the NFT market. CryptoSlam, another data aggregator, shows global volume plunged by over 4% between May and June 2023.
Since January 2023, the trading activity on the NFT marketplace has been tepid, although cryptocurrency adoption has increased sharply in the past few months.
Bitcoin celebrated its first day of 2023 by trading at $17,000; After several significant events, the crypto surged more than 20%. At press time, BTC was trading at $30,359.74 with an Intraday trading volume of $14,809,269,636.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
