In response to the prolonged downturn in the Non-Fungible Tokens (NFT) market, Dapper Labs, the blockchain solutions company behind popular NFT platform NBA Top Shot, has laid off 51 employees. This marks the third round of layoffs for the company, following previous job cuts in November and February.

Facing Challenges in the NFT Market

The NFT market has been struggling to recover amidst the broader crypto market rebound. NFT trading volumes have been declining, while sales volume and user activity on NFT platforms continue to decrease. The challenges faced by the NFT market have had an impact on various NFT collections, including non-Dapper Labs creations such as Bored Apes’ Apes. The value of these NFTs has dropped significantly, with some experiencing an 80% decrease in value.

Dapper Labs CEO’s Statement

Announcing the layoffs on Twitter, Dapper Labs CEO Roham Gharegozlou expressed his commitment to the company’s core communities and their mission of building innovative products. He also highlighted the business restructuring as a means to better serve the company’s fans and promote community growth in a sustainable manner.

FAQs

1. Why did Dapper Labs lay off employees?

Dapper Labs laid off 51 employees due to the prolonged downturn in the NFT market and the challenges faced by the industry as a whole.

2. Is this the first time Dapper Labs has conducted layoffs?

No, this is the third round of layoffs for Dapper Labs. The company previously laid off employees in November and February.

3. How has the NFT market been performing?

The NFT market has been struggling to recover and has seen a decline in trading volumes, sales volume, and user activity on NFT platforms.

4. What impact has the NFT market downturn had on NFT collections?

The downturn in the NFT market has affected the value of various NFT collections, including non-Dapper Labs creations such as Bored Apes’ Apes, which have experienced significant drops in value.

5. What is Dapper Labs’ plan moving forward?

Dapper Labs remains dedicated to its core communities and the development of innovative products. The company aims to navigate the challenges in the NFT market and foster sustainable growth within its communities.