Finance & Economics

NFT Marketplace Magic Eden Cuts 22 Jobs

The NFT marketplace Magic Eden, which is based in the Philippines, has decided to lay off 22 employees.

NFT Marketplace Magic Eden Cuts 22 Jobs

Source: Pixabay.com

This decision was made as part of the implementation of the plan for the corporate restructuring of the marketplace.

CEO and co-founder Jack Lu announced the job cuts on his Twitter page and in a post on the Magic Eden blog. He stated that the layoffs are necessary for the company to continue to exist in the face of the challenges it has had to face over the past few months.

Jack Lu noted that when drawing up the firm’s strategy for 2023, those forms of business organization and the roles of each of the team members that are the most promising in the current economic realities were actively studied. He also stated that without reducing the workforce, the company’s strategic goals cannot be achieved. Jack Lu called mastering new skills and knowledge another condition for obtaining the desired result of the activity.

At the beginning of 2023, Magic Eden had about 140 employees. Recently, layoffs in the field of NFT are frequent. For example, last summer, the OpenSea NFT platform laid off 20% of its workforce. This decision was made during the downturn in the cryptocurrency market.

Now, this sector is at an inflection point, when the volume of minted NFT drops by 60%, and the number of active buyers and sellers is a third of the levels observed at the beginning of 2022.

The current state of affairs, which is not favorable, does not mean the beginning of the movement of the industry toward total decline. Traditional institutional players continue to show interest in NFT. This means that there are prospects for development. Amazon is launching the NFT industry this spring. Fidelity Investments filed trademark applications for its own NFT trading platform in December.

Magic Eden also continues to direct efforts toward further development. The company has started collaborating with the Web3 MoonPay payment platform to offer new payment options to customers buying digital collectibles.

As we have reported earlier, PayPal to Cut 2,000 Staff.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.