The company’s president, Alejandro Navia, took to Twitter (X) to share the news, explaining that they had expanded too rapidly during the bullish market phase, necessitating a reduction in staff.
The concept of web3 media or tokenized media publications aims to address the challenges faced by web2 media firms by capitalizing on NFTs to build a strong community around their content creation. NFT Now is currently on a mission to empower cultural makers and encourage the widespread use of NFTs and web3.
In a notable achievement, the media company launched its Now Pass token in March, which rapidly sold out at 0.25 ETH per token, generating an impressive $1.1 million in total revenue.
However, the once-booming NFT sector has cooled off considerably compared to the peak demand it experienced during the pandemic era, primarily due to reduced liquidity injections. The market witnessed a significant selloff earlier this month as cryptocurrency prices declined, and investors became more cautious in light of concerns regarding high inflation, central bank rates, and the possibility of a recession.
NFT Now isn’t the only company in the industry facing difficulties in the current market conditions. Various firms are grappling with falling revenues and struggling to find ways to sustain their resources and survival.
For instance, Dapper Labs, helmed by CEO Roham Gharegozlou, recently bid farewell to 51 brilliant “colleagues and friends” as part of their efforts to adapt to the current market challenges. The company had already implemented staff reductions earlier, with a 20% cut in February following a 22% reduction in November of the previous year.
Even the well-established NFT marketplace, OpenSea, has had to resort to cost-cutting measures, trimming 20% of its workforce to navigate the prolonged slump in digital asset markets.
The current state of the NFT industry underscores the need for companies to recalibrate their strategies and reevaluate their operations in the face of a rapidly evolving market landscape. Despite the challenges, stakeholders in the space remain hopeful that the sector will eventually find its footing and continue to innovate the future of tokenized media.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.