NFT Market Decline Leads To Dapper Labs Laying Off 22% Of The Staff

Crypto Firms such as Dapper Labs are currently feeling the heat of these markets’ downturn. According to a report by Dapper Labs, Dapper Labs lost over 90% of the NBA Top Shot volume between February 2021 and now.

The drop in digital currency prices isn’t the only thing investors need to be concerned about. This is especially true when you consider the recent NFT market.

The sales volume of the company’s NBA Top Shot as of February last year was about $224 million, now at $2.6 million.

Dapper Labs Briefing

Dapper Labs has as its primary purpose to create collectible, tradable and unique basketball highlights that can be traded using non-fungible tokens. NBA Top Shot is the platform that enables Dapper Labs to accomplish its mission.

Highlights offered by the company already hold a licensing agreement with the NBA. This allows them to receive royalties for each transaction. Michael Jordan and Kevin Durant are two of the company’s notable investors.

For a better user experience on the platform, the company created its NFT blockchain – Flow. It relied previously on Ethereum to sell on its platform. After it launched CryptoKitties in 2017, the company created CryptoKitties, a pet-game.

Dapper Labs to Increase Staff Capacity With Crypto Winter

The NFT market continues to trend in Web3 and Dapper Labs seems to be one of them. According to the company, it will reduce its employee base. This information was revealed by the company on November 2nd. It stated that its staff would be reduced by 22%.

According to the company, this decision can be quite difficult. It stated, however that it was necessary to ensure the success of the community as well as the business over the long term.

Gharegozlou aired his opinions about the reasons why Gharegozlou believes that the company isn’t agile or community-driven. The reason was that the company’s growth had been too fast.

According to Gharegozlou, there’s a need to refocus the organization. Gharegozlou stated that this would allow the company achieve all its goals, including being community-driven and web3-native.

Decline In Dapper Labs’ Market Data

NFTs have not been well received by investors. According to data from on-chain, this has lowered the interest of the public in the company. The sales volume for NBA Top Shot has seen a dramatic drop of $40.8 million from the time it was launched in 2021. The actual sales volume for the platform now stands at $2.6 million.

NFT Market Decline Leads To Dapper Labs Laying Off 22% Of The Staff
Source: Crypto Total Market Cap on| Source: Crypto Total Market Cap on

In February 2021 the market had sold $224 Million worth of non-fungible tokens. This huge increase was achieved during NFTmania, which saw 1.2 million transactions with 80,822 buyers.

Pixabay featured Image and Charts By TradingView

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