One of the biggest names in the non-transferable token (NFT) industry is drastically cutting staff as the cryptocurrency bear market continues to plague Web3 companies.
Dapper Labs, the company that created the NFT marketplace NBA Top Shot, announced today that it is cutting 22% of its staff, citing the "macroeconomic situation."
"These cuts are the last thing we want to do, but they are necessary for the long-term health of our business and community. We know that web3 and cryptocurrencies are the future in many industries - with 1000-fold potential in adoption and mainstream impact - but today's macroeconomic situation means we can't completely control time."
Dapper Labs founder and CEO Roham Garegozlow wrote this on his blog. At the same time, chain data shows that market interest in Dapper Labs products is declining, following a broader trend of investors shunning NFT.
NBA Top Shot sales in October were $2.6 million, down from $40.8 million in the same period last year. DCG is the parent company of CoinDesk, as well as digital asset manager Grayscale Investments and crypto broker Genesis Trading.