Despite having no financial exposure to the collapsed exchange, Metaplex seems to be suffering from Solana’s reputational damage.
A round of layoffs at Metaplex, a maker of the Solana NFT protocol, were announced on November 17 as the Web3 ecosystem continues to be affected by the contagion brought on by the collapse of the crypto exchange FTX.
In response to the deteriorating market conditions for cryptocurrencies in general and for Solana in particular, an undisclosed number of Metaplex employees were given pink slips on November 18.
The company’s co-founder and CEO Stephen Hess revealed in a tweet today.
The Solana NFT network, which has established itself as a viable alternative to the dominant Ethereum NFT network, runs on the Metaplex protocol.
The business got off to a strong start in 2018, raising $46 million in January from investors like Multicoin Capital, Jump Crypto, and NBA legend Michael Jordan.
A few months later, in the midst of the bear market, the company unveiled MPLX, a native governance token, which saw a sharp decline in value after being released in September.
Amidst discussions about creator royalties, the enthusiasm for the Solana NFT market has anecdotally dwindled recently, and sales of the technology fell precipitously in October.