NFT Platform SuperRare Reduces Workforce by 30%
- SuperRare, an NFT platform, has laid of its workforce by over 30% due to the prevailing crypto winter and bearish market conditions.
- CEO of the NFT platform, John Crain, claims that the company had over-hired in the 2021 crypto market bull run.
- Craig accepted that the extreme growth of SuperRare proved unsustainable amid the heavy volatility of the cryptocurrency market.
- “We over-hired and I take full ownership of this mistake,” said Craig.
The prevailing crypto winter has caused trouble for many companies in the sector because they either had exposure to already bankrupt crypto platforms or they held assets that have declined significantly in price action over the course of the last 12 months. Interestingly, the latest cryptocurrency-related platform on the list is the renowned NFT platform, SuperRare.
On Saturday, the CEO of the NFT platform, John Crain, shared on Twitter that his company has decided to let go of 30% of its staff, as a repercussion of its claimed over-hiring during the last bull run. It is important to note here that there has been a huge decline in the popularity of NFTs recently, and some of the most popular have declined by a huge margin in floor prices.
While Crain said that SuperRare grew massively “in tandem with the market” during the last bull run of 2021, he accepted that the extreme growth proved unsustainable amid the heavy volatility of the cryptocurrency market. He apologized on Twitter, stating:
“We over-hired and I take full ownership of this mistake. To correct course, we’ve made the difficult decision to rightsize our team, ensuring that SuperRare Labs will be able to continue serving our community of artists, collectors and curators while remaining the destination for the best cryptoart in the world.”
However, according to the CEO, the company is “doing everything [it] can to help them transition to new opportunities and support them in their future endeavors.”
While the difficult action might demotivate investors trying their best to survive the crypto winter season, Crain showed optimism by stating:
“We know that there is still much innovation and transformation yet to come for Web3, NFTS, cryptoart, decentralized finance and governance. We are facing headwinds, yes – but there remains an incredible uncaptured opportunity as we continue building something totally new: a global digital art renaissance that is transparent, fair and that anyone can access from anywhere in the world.”
The massive layoff comes at a time when the whole cryptocurrency industry is dealing with huge losses, with a number of companies filing for bankruptcy. While several big names like Coinbase and Crypto.com have already laid off a portion of their staff, multiple once-leading companies like FTX and Celsius Network have filed for bankruptcy.
Interestingly, crypto bank Silvergate Capital is also reportedly planning to lay off 200 employees, or approximately 40% of its staff. The announcement, which was made in a filing with the Securities and Exchange Commission, caused the company’s shares to drop 46% to $11.76. Recently, the bank has written off investment of over $196 million associated with its purchase of Diem Association’s technology and assets from META and also scraped off plans to introduce a digital currency.