OpenSea Opens Doors For Companies That Want To Acquire NFT Trading Platforms

OpenSea is ready to accept acquisitions from other companies interested in buying them. (Photo; Doc. Webtekno)

JAKARTA - OpenSea, the world's largest non-fungible token trading platform (NFT), does not rule out being acquired by other parties. This was revealed by OpenSea CEO Devin Finzer, when the NFT industry was consolidated.

"We think that if the right partnership emerges, then it is something we should consider," Finzer said in a recent interview.

Finzer admits that OpenSea has received several offers from parties intending to acquire the platform. OpenSea, which used to dominate the NFT sector, now has to compete with other NFT trading platforms such as Blur which outperforms OpenSea in terms of trading volume.

Based on data from Dune Analytics, OpenSea's monthly trading volume fell 96% and only reached $171 million (IDR 2.7 trillion). Its annual revenue is only $38.9 million (IDR 615 billion). Finzer accused Blur of using unethical strategies, such as ignoring legal and regulatory aspects. Blur is also known to often distribute airdrop tokens and aggressive marketing campaigns.

The NFT market is experiencing developments similar to the crypto market, which tends to go up and down. At a time when market conditions fluctuate, many business people are seeking deals and synergizing to survive market pressure. OpenSea itself is active in acquisitions in 2022, by purchasing NFT Gem data providers, Dharma Labs crypto wallets, and NFT Mintdrop launch platforms. Finzer said that talent recruitment is the main reason for the company's acquisition steps.

OpenSea is backed by big investors, such as venture capital firm Andreessen Horowitz, Paradigm, and Coatue Management. They participated in a major funding round in 2021, when OpenSea reached its $13 billion highest valuation (IDR 205 trillion) amid the NFT boom. However, as the NFT market damped, OpenSea's valuation also fell. Coatue reportedly cut its OpenSea share value by 90% at the end of last year.

Meanwhile Andreessen Horowitz helped OpenSea raise $423 million (IDR 6.7 trillion) in three funding series in 2021. The company led by Marc Andreessen and Ben Horowitz has supported more than 20 crypto startups with a valuation of over $1 billion (IDR 15.8 trillion).

OpenSea took a surprising step in November 2023. The NFT digital art trading company terminated about 20 employees, or 50% of its staff, due to the drop in NFT sales.

"The restructuring we are doing is completely oriented towards adjusting the composition of the team to become a slimmer, smaller team that can operate more agilely in the market, not a reduction due to financial pressure," Finzer said.