The e-commerce giant eBay has reportedly shifted its stance on non-fungible tokens (NFTs) and is likely to exit this sector soon, according to NFTgators, citing its own sources.
The company has reduced more than 30% of the workforce at its NFT marketplace, KnownOrigin. eBay acquired the UK-based platform in June 2022.
Two months later, eBay purchased the collectible card marketplace TCGplayer for $295 million, expanding its digital goods business.
Previously, eBay allowed users to trade NFTs. In May 2022, the corporation launched an NFT collection in partnership with OneOf.
According to sources, the company recently dismissed Stephanie Moore, head of strategy for the Web3 division, and David Moore, co-founder of KnownOrigin.
Relations between eBay and the NFT project have reportedly soured, leading the e-commerce giant to abandon all plans related to digital art, added the publication’s source.
In a message to colleagues, Moore stated that witnessing the scale of layoffs within the team “was brutal.” Other KnownOrigin employees accused eBay of “a lack of leadership and downsizing strategy.”
According to CoinGecko, in 2023, the turnover of non-fungible tokens across the top ten blockchains fell by 55.1% to $11.8 billion. Of this, 72.3% ($8.54 billion) is associated with NFTs on Ethereum.
In November, the marketplace OpenSea reduced its workforce by 50% due to a shift in business strategy.
In October, Yuga Labs, the studio behind the Bored Ape Yacht Club NFT collection, announced layoffs. The company has focused on its own metaverse, Otherside, launched in spring 2022.