SuperRare cuts 30% of staff as growth slows during crypto winter

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Non-fungible token market (NFT) SuperRare announced a 30% cut in staff, as CEO John Crain explained that the company mistakenly over-hired during the last bull market.

In a January 7 tweet, Crain share a screenshot of his message to SuperRare’s Slack channel announcing the 30% discount, stating that he had “difficult news to share.”

“Startups are a balancing act between managing rapid growth while doing everything possible to conserve limited resources. During the recent bull run, we have grown in tandem with the market,” he said. he noted, adding that:

“In recent months, it has become clear that this aggressive growth was not sustainable: we have over-hired, and I fully accept this error.”

Crain did not specify what type of severance pay the terminated employees will receive, but noted that the company “will do everything in its power to help them move on to new opportunities and support them in their plans. future”.

SuperRare is one of the biggest names in the space, but notably sees significantly lower trading volume than competing NFT marketplaces such as OpenSea and Magic Eden.

According to Data from DappRadar, SuperRare has overseen a trading volume of $663,000 in the last 30 days, compared to OpenSea’s 30-day trading volume of $307 million and Magic Eden’s $80.1 million.

This is partly due to SuperRare’s model which is more focused on art, artist community, and single-edition NFT artwork, as opposed to the computer-generated avatar model carrying thousands of tokens in a single collection, which is popular on OpenSea and Magic Eden. .

Related: Industry Seeks Solutions to NFT Image Hosting Disasters

Looking ahead, Crain pointed out that despite slowing growth in the crypto bear market, SuperRare is still focused on pursuing its original vision of opening up greater access and exposure to digital artists.

“We face headwinds, yes – but there remains an incredible untapped opportunity as we continue to build something totally new: a global renaissance in digital art that is transparent, fair and everyone can access from anywhere in the world,” he concluded.

SuperRare’s major staff cuts add to a wave of blockchain and crypto companies laying off staff during the crypto winter, with Cointelegraph reporting that at least six companies have done so since early December 2022 alone.

As for the most recent companies to cut staff, it was reported on January 5 that crypto lender Genesis had laid off 30% of its staff, while seemingly struggling crypto exchange Huobi also announced a 20% discount on January 6.

A Wall Street Journal report this week also said that US bank Silvergate cut its workforce by 40% following an $8.1 billion bank run triggered in response to the collapse of FTX in November. .