SuperRare NFT Marketplaces Have 30 Percent Layoffs, The Impact Of The Market Reduction?

JAKARTA NFT digital art trading company, SuperRare reportedly cut 30 percent of its employees. The reason for the reduction in employees, SuperRare has hired employees excessively. This decision forced SuperRare to separate from its staff.

According to SuperRare Labs CEO John Crain, on Friday 6 January 2023, the growth of NFT employees and markets is unbalanced. SuperRare is claimed to have an excess of employees. This cut is done to balance and manage the company's growth as well as part of efforts to save limited human resources.

"Startup is a balancing measure in managing rapid growth while doing everything possible to save limited resources," Crain said.

Furthermore, the SuperRare CEO explained that market growth that occurred in previous years was not sustainable due to the shocks experienced by the crypto industry. Therefore, he considered that the company had made a mistake by employing more employees.

"During the recent bull run, we grew along with the market. In recent months, it became clear that this aggressive growth was not sustainable: we employed too much, and are fully responsible for this mistake," he added.

Even so, he considered that this was part of an effort to improve the direction of the company. Craine hopes her company can continue to serve the NFT community, artists and collectors. That way, SuperRare can become the best digital art market in the world.

"To improve direction, we have made difficult decisions to streamline our team," he added. "... Ensuring that SuperRare Labs will be able to continue to serve our community of artists, collectors and curators while remaining the best cryptoart destinations in the world."

Getting to Know SuperRare

SuperRare is an exclusive crypto art market that allows users to sell and collect digital artwork. Launched in 2018, this marketplace serves NFT digital art trading. This platform was built on the Ethereum network.

In March 2021, SuperRare raised $9 million in the Series A funding round. The round was led by Velvet Sea Ventures and 1confirmation, with participation from celebrities like Mark Cuban, Marc Benioff, and Harton Kutcher.

Other NFT platforms for Employee layoffs

One of the other popular NFT trading companies, OpenSea also had 20 percent cut employees in July 2022. The reduction in employees occurred during the prolonged crypto winter. The decline in crypto prices has occurred since the drop in Terra LUNA in May 2022. It then has an impact on related crypto companies. Most recently, the collapse of the leading crypto exchange company FTX.

In addition to the decline in the crypto market, macroeconomic conditions also affect the crypto market. Therefore, OpenSea CEO Devin Finzer sees the need to look at the "prolonged decline probability". However, the executive hopes that cutting the card will put OpenSea in a position to "be the largest market on the planet."