- OpenSea is open to partial acquisitions and a potential buyout, its CEO has confirmed
- The company was valued at $13 billion in January 2022, but competitors and a slump in the NFT market have hit it hard.
- OpenSea is not seeking acquisition but is open to the right offer
NFT giant OpenSea is open to the acquisition of elements of its company and even a potential buyout having struggled to justify its January 2022 valuation of over $13 billion. The company, known best for operating one of the most popular NFT exchanges, would “certainly consider” the right partnership according to CEO Devin Finzer amid a continued slump in the NFT market which has not seen the same kind of recovery as the wider crypto market. Finzer told DL News last week that the company is not seeking acquisition but the company appears to be struggling to keep competitors such as Blur at bay.
NFT Market Still in Limbo
In January 2022 OpenSea announced $300 million in funding, a move that saw the company valued at $13.3 billion. This was when the world was in the middle of NFT, but the story has been an unhappy one since the market peaked in May that year; the NFT sector has been in decline ever since, with valuations and transaction volume declining month on month, with the bleeding seemingly staunched last summer. Since then, NFT prices have stagnated rather than continued downward.
This has naturally hit NFT exchanges hard, with OpenSea hit particularly hard on two fronts: not only is its own exchange seeing fewer users due to the market downturn, but competitors such as Blur have stolen some of its market share and are eyeing more; Blur, launched in late 2022, currently enjoys daily trading volume five times greater than OpenSea’s.
At its peak, OpenSea held about 90% of the NFT sector’s market share, but its monthly trading volume has plummeted by 96% since January 2022, now standing at $171 million, according to Dune Analytics.
OpenSea Planning Route Back to the Top
As a result of this shit, OpenSea is looking to plot its route back to the top. Finzer told DL News that it is taking a “pretty open-minded approach,” adding that it has “no plans to be acquired” but that if the right partnership comes along “that’s something we should certainly consider.”
Finzer remains undeterred by Blur’s success, emphasizing OpenSea’s commitment to building a brand focused on user safety by delisting fraudulent or problematic collections. He also criticized Blur for allegedly cutting corners in legal and regulatory compliance.
Amid the shifting crypto market dynamics, OpenSea’s focus on acquisitions, like Gem, Dharma, and Mintdrop in 2022, reflects its interest in talent acquisition as a primary criterion for deals, while Finzer remained tight-lipped on long-standing rumors about OpenSea pursuing an initial public offering.
