OpenSea shifts focus to advancing OpenSea 2.0 and lays off employees

US Non-Fungible Token (NFT) marketplace OpenSea has announced the company’s decision to reduce its workforce in an effort to shift focus to advancing innovative OpenSea 2.0. The company’s decision was revealed via an official X-post from OpenSea co-founder and CEO Devin Finzer, who wrote about the shift to “a smaller team with a direct connection to users.”

As part of the introduction of the OpenSea 2.0 market upgrade, intended to improve the platform’s underlying technology, reliability, speed, quality and experience, almost 50% of the company’s employees would be eliminated. However, affected individuals are guaranteed four months’ severance pay, an accelerated timeline for equity acquisition, and six months of continued health and mental health care.

The CEO of OpenSea claimed that the market intends to become a leader in the industry, in response to certain comments from the community that OpenSea appears to be a follower rather than a leader. Finzer reiterated that OpenSea’s continued journey towards an improved ecosystem with “speed, quality and conviction” would also take into account the existing community. He stated: “As we rebuild, we will continue to support our existing products and repeatedly test OpenSea 2.0 publicly – staying agile, attentive and focused.”

Chinese crypto reporter Colin Wu shared a post on his official X-page Wu Blockchain revealing OpenSea’s new focus on innovation, workforce reduction, and a reference to “upgrading product technology, reliability, speed, quality and user experience.” The reporter also shed light on OpenSea market share falling to 18% in early November from 73% in October 2022.

According to Nansen’s reports, NFT prices continue to fall, with rock-bottom prices of prominent blue chip collections falling more than 25% in August. In response to increasing pressure in the NFT market, OpenSea laid off nearly 20% of its employees in July.