Solana-based Metaplex NFT marketplace cuts staff amid FTX collapse

The NFT protocol development studio Metaplex, from the Solana ecosystem, has laid off an undisclosed number of employees due to worsening market conditions, according to co-founder and CEO Stephen Hess.

(1/7) Today we made the difficult decision to part ways with several members of the Metaplex Studios team.

— stephen.sol (@meta_hess) November 17, 2022

“Although our treasury was not directly affected by the FTX collapse, and the fundamentals remain strong, the indirect impact on the market has been significant and requires a more conservative approach,” he wrote.

According to Hess, Metaplex as the foundational layer of the Solana NFT ecosystem “must ensure the long-term sustainability of the protocol for the benefit of the community”.

In the near term, the team will focus on several initiatives in royalties accrual, expanding capabilities for NFT creators, and improving developer tools and the SDK.

In January, the Metaplex Foundation raised $46 million as part of the first financing round.

In September, analysts noted a sharp rise in the number of Solana-issued collectible assets, despite the overall cooling of the non-fungible token market. At that time, Hess suggested that a low barrier to entry for creators played a significant role.

As reported in October, the Metaplex token (MPLX) fell 60% after the platform’s second airdrop was announced.

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