Dapper Labs Reduces Staff by 22% as the NFT Market Declines

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Last Updated on November 3, 2022 by Bitfinsider

As the crypto bear market continues to wreak havoc on Web3 companies, one of the largest names in the Non Fungible Token (NFT) industry is downsizing its workforce drastically.

The developer of the NFT marketplace NBA Top Shot, Dapper Labs, stated today that it will lay off 22% of its workforce, blaming the “macroeconomic situation.”

Roham Gharegozlou, founder and CEO of Dapper Labs, published in a blog post: “These reductions are the last thing we want to do, but they are necessary for the long-term health of our business and communities. We know web3 and crypto is the future across a multitude of industries – with 1000x potential from here in terms of mainstream adoption and impact – but today’s macroeconomic environment means we aren’t in full control of the timing,”

Gharegozlou noted that the company’s rapid growth prohibited it from being “as aligned, agile, and community-driven as we require.”

“The refocusing of our organization will let us achieve every milestone sustainably: web3-native, mobile-first, and community-driven,” wrote Gharegozlou.

Moreover, on-chain data indicates that market interest in Dapper Labs’ products is waning, consistent with a general trend of investors avoiding NFTs. October sales volume for NBA Top Shot decreased to $2.6 million from $40.8 million during the same month prior year. In February 2021, during the height of the NFT craze, the NBA Top Shot marketplace earned $224 million in NFT exchanges with 80,822 unique buyers and 1.2 million transactions.

Similarly, the recently introduced NFL All Day collectibles market reported a volume of $6 million in October, down from $14 million in September.

The layoffs at Dapper Labs are only the most recent example of a widespread trend inside the sector. In order to weather the bear market, companies such as BitMEX, Digital Currency Group (DCG), and NYDIG have all reduced personnel in recent weeks.

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