{"id":35879,"date":"2023-07-14T23:07:17","date_gmt":"2023-07-15T03:07:17","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/nba-top-shot-developer-dapper-labs-continues-layoff-trend-with-new-round-of-job-cuts\/"},"modified":"2023-07-14T23:07:19","modified_gmt":"2023-07-15T03:07:19","slug":"nba-top-shot-developer-dapper-labs-continues-layoff-trend-with-new-round-of-job-cuts","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=35879","title":{"rendered":"NBA Top Shot Developer Dapper Labs Continues Layoff Trend with New Round of Job Cuts"},"content":{"rendered":"
\n

Dapper Labs, the non-fungible token (NFT) collectibles company behind NBA Top Shot, recently bid farewell to an additional 51 employees, following a previous staff reduction of 20% in February earlier this year.<\/p>\n

In an announcement by Roham Gharegozlou on July 13, the company’s CEO revealed that the organization is undergoing its third round of staff layoffs within a year.\u00a0<\/p>\n

Gharegozlou utilized Twitter to share an email sent to team members, disclosing that a significant number of 51 employees will depart.<\/p>\n

“The decision was incredibly difficult because of the amazing people affected, but it is necessary, and the right thing to do is to ensure a lean and efficient Dapper Labs,” reads the CEO’s note.<\/p>\n

<\/oembed><\/figure>\n

Gharegozlou emphasized that Dapper Labs and Flow, NBA Top Shot’s Blockchain, had ample capital resources, stating, “Despite the restructure, our financial position remains strong.”\u00a0<\/p>\n

Furthermore, he expressed, “Through this reorganization, we have streamlined our operations, enabling us to prioritize the well-being of our fans and foster the organic growth of our communities in the most sustainable manner.”<\/p>\n

NFT Market Slump: Dapper Labs’ Journey from Prominence to Challenging Times<\/h2>\n

Dapper Labs, a Vancouver-based company, rose to prominence in 2017 with the launch of CryptoKitties, a blockchain-based “game” that introduced the concept of NFTs through collectible feline characters.<\/p>\n

Another noteworthy venture by Dapper Labs is NBA Top Shot, a collaboration with the NBA that debuted in 2020. Powered by Dapper Labs’ Flow blockchain, NBA Top Shot allows users to trade digital assets based on video clips from NBA games.<\/p>\n

In March 2021, Dapper Labs achieved a significant milestone by securing $305 million in funding, driving its post-money valuation to an impressive $2.6 billion.\u00a0<\/p>\n

However, this accomplishment coincided with the broader decline witnessed by the NFT market and trading in 2022.\u00a0<\/p>\n

Reports in April highlighted the prevalence of sellers, resulting in an imbalance in the NFT market.<\/p>\n

Moreover, numerous renowned blue-chip collections have experienced substantial drops in their floor prices in recent months.<\/p>\n

Regrettably, the subsequent crypto winter took its toll on Dapper Labs.\u00a0<\/p>\n

The company had to implement workforce reductions, laying off 22% of its employees in November 2022, followed by an additional 20% reduction in February of the following year.<\/p>\n

According to data from Growjo.com, the most recent layoff accounted for approximately 12% of the company’s total staff.<\/p>\n

NFT Winter: Downturn in the NFT Industry as Sales Plummet<\/h2>\n

According to a report from IntoTheBlock, the NFT industry is currently facing a significant downturn.\u00a0<\/p>\n

The weekly sales count is predicted to be at its lowest point since June 2021, with an average daily count of 11.65k over the past week.\u00a0<\/p>\n

This represents a substantial decrease from the peak levels observed during the 2021\u201322 bull market.<\/p>\n

The decline in NFT sales has had a severe impact on trading volumes.\u00a0<\/p>\n

After reaching its yearly highs in March, the downward trend continued and accelerated throughout the second quarter. The average daily trading volume over the past week was approximately $16 million.<\/p>\n

Comparatively, on a year-to-date basis, the total volume of NFTs has only increased by 11%, while the total cryptocurrency market cap has grown by 48% during the same period, according to CoinMarketCap.\u00a0<\/p>\n

This indicates that the NFT sector has become detached from the overall growth observed in the digital asset market.<\/p>\n<\/p><\/div>\n