Metaplex Reduces Workforce due to FTX Contagion

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  • NFT platform Metaplex has downsized its workforce due to the FTX-induced crypto market turmoil
  • A decline in activities on the Solana blockchain is also to blame for the firm’s misfortunes
  • The Solana-powered protocol was involved in developing Coachella NFTs that are currently stuck on FTX NFTs

Solana-based NFT platform Metaplex has downsized its workforce, citing the ongoing crypto market havoc caused by the FTX liquidity crunch. The platform is also blaming a decline in activities on the Solana blockchain as another reason it had to lay off some of its staff. Metaplex is part of the team involved in creating some of the NFTs currently stuck on FTX NFTs.

The Market Requires a Conservative Approach

Although it didn’t reveal the actual number of employees who have been let go, Metaplex Studios’ CEO Stephen Hess disclosed that the platform didn’t have funds on FTX, suggesting that the decision was partly due to the prevailing market conditions which he said call for a “more conservative approach.”

In a Twitter thread, the Metaplex executive noted that the platform sits at the heart of the Solana NFT ecosystem thus giving it a key role to “ensure the long-term sustainability of the protocol for the benefit of the [Solana] community.”

Hess also revealed that Metaplex Studios will focus heavily on improving developer tools, royalty enforcement among other features. The executive appeared to add weight on NFT creators’ royalties which have been a slippery topic in the space

Binance Halting Support for Solana Adds to the Mess

Solana’s leading NFT marketplace Magic Eden has turned to optional creator fees while its Ethereum rival OpenSea said it’s enforcing royalties for all collections on the platform. The Solana NFT market has been recording low trading volumes in the recent past. 

A hack on hot wallets powered by the platform four months ago has contributed to reduced interest in the decentralized network, with Binance temporarily halting support for Solana-based USDT and USDC stablecoins being the latest misfortune to befall the Solana blockchain. With Hess’ comments, it is unclear whether Solana-powered NFT marketplaces will start supporting compulsory creator fees.