Dapper Labs has confirmed a 22% reduction in its workforce as NBA Top Shot reaches its lowest sales since December 2020.
In Brief
Due to macroeconomic factors, Dapper Labs has let go of 22% of its team members.
Employees affected by the layoffs will receive a generous severance package and various other benefits.
Dapper Labs' premier NFT platform, NBA Top Shot, has reported a staggering 43% drop in its secondary sales last month.
The Canadian Web3-focused gaming studio, Dapper Labs, has made the decision to reduce its workforce by 22% as the economic situation worsens. Meanwhile, NBA Top Shot has hit a new low in sales figures not seen since December 2020, reflecting the ongoing 'crypto winter.'
In an official blog post Roham Gharegozlou, the founder and CEO of Dapper Labs, shared, 'We strongly believe that web3 and crypto hold vast potential across many sectors, but the present economic landscape limits our control over the timing of our initiatives.'
Gharegozlou also pointed out that the company's rapid expansion, going from 100 to more than 600 employees in under two years, has led to operational hurdles, compromising Dapper Labs' ability to remain aligned with community-driven strategies.
For those leaving the company, Dapper Labs will provide a comprehensive benefits package, which includes three months of salary, six months of health insurance coverage, and four months of digital therapy services.
This announcement follows shortly after the release of the sales figures for NBA Top Shot for October, which reported: sales As noted by the NFT analytics platform, NBA Top Shot garnered $2.67 million in secondary sales during October, marking a 43% decline from September’s $4.7 million. This continues a four-month streak of diminishing sales, which stand in stark contrast to the stunning $224 million sales record set in February 2021. CryptoSlam Since its introduction in 2020, NBA Top Shot has racked up over $1 billion in secondary sales, yet only $207 million of that was generated in the year 2022.
The trading volume for NFTs on the Flow blockchain, developed by Dapper Labs for NBA Top Shot, dropped drastically from $39 million in September to just $15.6 million in October.
Despite the disappointing figures, in October, there was a partnership with LaLiga to launch Golazos, an NFT marketplace centered around Spain’s top football league. This platform allows users to buy and trade NFT trading cards showcasing the league's most thrilling moments, and it began a closed beta phase on October 27.
According to a report from Artmarket.com, a total of 277 NFTs were auctioned in the first half of 2022, with an average selling price of around $47,000. Dapper Labs partnered The NF3 Counter platform by Stephen Curry offers fans a chance to earn free basketball-related NFTs.
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