SuperRare Cuts 16% of Staff - Is the NFT Marketplace in Trouble?
The NFT marketplace SuperRare has recently announced that it is cutting 16% of its staff. This comes as a surprise to many in the NFT space, as SuperRare had seen significant growth in the past few months. The company claims that this is due to the fact that it over-hired, but many are left wondering if this is an indication of something more troubling. In this blog post, we'll be exploring the implications of this move and what it might mean for the future of the NFT space. The NFT marketplace SuperRare recently announced that it had cut 30% of its staff, citing over-hiring as the reason. This news has sparked speculation among the crypto community about the health of the NFT marketplace. Is this a sign of trouble for the growing industry?
2) What is SuperRare?
SuperRare is a digital marketplace for NFTs (Non-Fungible Tokens), allowing artists to create and sell digital artwork as a form of investment. The platform was founded in 2017 with the mission of creating an accessible and safe way for artists to monetize their digital art. SuperRare works to provide its users with a transparent and secure environment to display, buy, and sell digital art.
The marketplace allows artists to tokenize their work and upload it to the SuperRare site, where they can either list it for sale or auction it off. Buyers can purchase these works with cryptocurrency and own a unique, unalterable, and verifiable piece of art. All NFTs are stored on the blockchain, which gives them an immutable history and records all previous ownership.
NFTs are seen as an exciting new asset class, and SuperRare has become a leader in this burgeoning market. The platform has attracted attention from some of the world’s top investors and has become a hub for digital art collectors. The company has also secured several partnerships with companies such as MakerDAO, Blockchain Arts Collective, and Animoca Brands.
Overall, SuperRare is helping to bring together digital art enthusiasts, investors, and collectors by creating a safe space for them to transact. The platform has become a popular choice for those looking to invest in digital art and it continues to push the boundaries of what’s possible with blockchain technology.
3) The layoffs
Earlier this week, the NFT marketplace SuperRare announced that it was cutting 30% of its staff. This news comes as a shock to many of the marketplace’s users, who have been enjoying the platform’s growing popularity over the past few years.
The layoffs took place on April 13th and affected 16 employees. The SuperRare team stated that they “over-hired” during their growth period and the decision was made to reduce their staff numbers in order to ensure financial stability. This is not an unusual move for a company to make during a downturn or rapid growth period, as hiring too many employees can lead to an unsustainable overhead.
SuperRare also announced that in response to the layoffs, they would be providing severance packages for those affected, including three months of salary and health care support. This will help to ensure that affected employees are taken care of during the transition period.
Although the layoffs were sudden and unexpected, the SuperRare team is optimistic about the future of the marketplace and will continue to focus on delivering a high quality product to their users.
4) Why did this happen?
SuperRare, an NFT marketplace, recently announced that it would be cutting 30% of its staff, citing over-hiring as the primary cause. This move came after the company saw significant growth in 2020, with a reported $25 million in sales. Despite this success, the company had over-hired, leading to a situation where it had too many employees for its current size.
The CEO and Co-founder, John Crain, cited the "uncertainty" of the pandemic as a major factor in the decision to over-hire. He explained that SuperRare had been expecting even more growth, and had hired ahead of demand in order to meet customer needs. However, when that expected growth did not materialize, the company was left with more employees than it could sustain.
Crain also stated that the layoff decision was difficult but necessary in order to ensure the long-term success of the company. He expressed hope that many of the laid-off employees would find new opportunities within the NFT space and emphasized that SuperRare is still committed to its mission and values.
5) What does this mean for the future of SuperRare?
The layoffs of 30% of staff at SuperRare could mean several things for the NFT marketplace. For one, it could be an indication that the company had over-hired, leading to the need to downsize. It could also mean that the company is facing a lack of demand or success, leading them to reduce their costs.
The layoffs could also indicate a shift in focus for the company. SuperRare could be reducing its staff in order to make room for more specialized positions and roles. This could mean they are moving away from their generalist model and towards something more focused.
It is also possible that this is a sign of trouble for the future of SuperRare. If demand is low and their current strategy isn’t working, it could indicate that the company may need to pivot in order to stay afloat.
Whatever the reason for the layoffs, it’s clear that the future of SuperRare is uncertain. The NFT market is booming, and SuperRare must find a way to remain competitive if it hopes to remain successful in the long run. Time will tell what these layoffs mean for the future of the platform.