In the thick of a cold and turbulent crypto winter, Dapper Labs has recently undergone its third round of layoffs within the space of a year. Acknowledged by CEO Roham Gharegozlou on Thursday morning Asia time, the company which operates in the Non Fungible Tokens (NFT) market, has let go of 51 dedicated team members. This follows a 20% workforce reduction last February, and a further 22% cut in November.
The axed positions form part of a larger restructuring effort aimed at making the business leaner. Gharegozlou opines that this move will allow Dapper Labs to “do the right thing” for its fans and foster robust community growth. It’s worth speculating whether these rounds of axing and trimming are merely survival measures or indicative of a larger issue with management.
Consider the narrative of the NFT market, which continues to visibly struggle despite the ostensible recovery seen in other sectors of crypto economy. This can be measured by CoinDesk’s reporting of declining sales volumes and users on NFT marketplaces and unstable trading volumes. The question arises – is it the economic downturn or is the novelty of the NFT sphere wearing off?
A telling sign of the market’s downturn can be seen through the decline in the value of Bored Apes – a key NFT collection not made by Dapper Labs, yet often used as a health indicator for the market. In its heyday, the Bored Apes were the blue chip of the NFT world with value appreciating exponentially. However, recent assessments reveal a dramatic drop in value, with some Apes plummeting by upwards of 80%.
This paints a bleak picture for NFTs in the current climate and the companies that operate within them. Should we be ringing the death knell for NFTs, or is this merely a temporary setback, an economic contraction before a possible explosion of investment and interest?
At this point, only time can answer these tough questions, but in the meantime, the actions of Dapper Labs and their CEO provide a telling insight into the delicate state of the NFT market. The tale of Dapper Labs could be interpreted as both a cautionary or bullish indicator, depending on one’s perspective. While some might see a company in crisis, doing what it must to survive, others may consider these actions as a tough love measure to streamline an industry heavyweight for the upcoming spring. Either way, the next few months will certainly be illuminating.
Source: Coindesk
