One of the biggest NFT marketplaces, OpenSea, will lay off 20% of its workforce, according to CEO Devin Finzer, who made the announcement on Thursday. This is because the price of crypto has crashed over the past six months.
We need to get the company ready for the risk of a protracted downturn because we have entered an unprecedented period of macroeconomic volatility and crypto winter, Finzer told the company. According to the internal message, he also tweeted.
Other cryptocurrency businesses, besides OpenSea, have also fired staff members. Mid-June saw an announcement from Coinbase Global Inc., which runs a bitcoin trading platform, that it would be laying off 18% of its staff because of the recession.
Why is cryptocracy Happening Right Now? Reasons for Crypto Crashing
Macroeconomic issues are to blame for the recent crypto crash. The US Federal Reserve is boosting interest rates to combat inflation, which discourages investment in riskier assets and more expensive loans.
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Although the price of bitcoin and ethereum has increased marginally over the last two days, overall the value of the two cryptocurrencies has decreased by almost 70% from their November highs.
Non-fungible tokens, or NFTs, are distinct digital assets whose popularity has declined along with cryptocurrencies. Data from OpenSea shows that between May and June, NFT sales decreased by nearly 75%.
Should I buy cryptocurrency?
According to some experts, the current price of cryptocurrencies may make it a good moment to purchase them, but you should be ready to make long-term investments and be aware of the hazards associated with both cryptocurrencies and NFTs.
Investing in cryptocurrencies is somewhat riskier than holding savings accounts or Treasury bills because they are a new technology and their prices can change significantly over the course of a day or even an hour.
Experts advise you to give other financial assets, such as retirement funds and emergency accounts, priority before making a cryptocurrency investment.