Dapper Labs has been forced to cut 22 per cent of its staff amid the slump in the NFT market.
The company behind NBA Top Shot and NFL All Day informed Dapper Labs staff in a letter that the cuts were necessary “for the long-term health of our business and communities”.
Dapper Labs NFT marketplace founder and chief executive Roham Gharegozlou said: “We know Web 3.0 and crypto is the future across a multitude of industries – with 1000x potential from here in terms of mainstream adoption and impact – but today’s macroeconomic environment means we aren’t in full control of the timing.”
When the letter was sent, Dapper Labs employed more than 600 members of staff having grown from a team of just 100 in less than two years.
Founded in 2018, it’s most well-known for its NBA Top Shot game which gives basketball fans around the world the chance to buy, sell, trade and collect their favourite moment in the form of NFTs.
It’s believed the Vancouver firm facilitated more than $700m of sales on the marketplace since in launch in October 2020 and May 2021.
Like many NFT firms working in the space, it was quick to brand out into other sports. Agreeing deals with the likes of La Liga, UFC and even the NFL.
Gharegozlou added: “Across Dapper Labs, we are doubling down on what will move the needle and get the whole industry to its next inflection point – and pulling back on everything that doesn’t fit that focus.
“While we are ourselves taking big swings to 10x the market size, we also need to become a focused, streamlined organisation that lets us get to profitability, control our own destiny, and sustainably build toward achieving our mission, no matter the economic conditions over the next few years.”