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Solana NFT Protocol Metaplex faces company-wide layoffs after FTX collapse

Solana

The Solana ecosystem continues to take the biggest hit since the collapse of FTX, which was once one of the largest cryptocurrency exchange platforms in the world.

Its own token, SOL, is suffering severely as the altcoin already lost 62% of its value in the last two weeks.

By tracking from Koingecocrypto asset, which now ranks 17thth in terms of market capitalization, it is changing hands at $12.88 and is down more than 5% in the last 24 hours. Meanwhile, over the past seven days, the digital coin has dropped 22.6% of its spot price.

Some observers also note that a significant number application developers began to pack their bags and abandon the blockchain network, as evidenced by the decrease in the number of deposited SOL tokens.

Unfortunately, the tragedy of people and employees under the auspices of Solana does not end there.

 Image: Business Insider

Metaplex forced to lay off an unnamed number of workers

In a desperate attempt to keep its business afloat in the wake of the negative effects of the FTX crisis, Metaplex, the Solana NFT protocol, announced via Twitter that it will parting ways with some of their employees.

Stephen Hess, CEO and co-founder of the protocol, was quick to clarify that the studio’s treasury was not directly affected by the FTX collapse, but acknowledged that the fallout from this episode of the crypto market crash forced them to take some drastic action.

At the moment, Hess does not say how many employees will be affected by the layoff and which departments will now have to work with fewer team members.

Metaplex Studio is credited with minting over 22 million non-fungible tokens, which collectively fetch an astounding $3.6 billion worth.

Solana TVL has also been hit hard

SOL’s price and market cap aren’t the only things that have been affected by the FTX-related circumstances.

Solana Ecosystem TVL, which was once worth $1 billion has collapsed as it was erased from $700 million, falling 70% since November 6th.

It didn’t help that the Solana Foundation had over $1 million on the crypto exchange and owned over $3.2 million worth of FTX shares and $3.43 million worth of FTT tokens that lost almost 80% of their value in just one day.

As a result of this level of exposure, the network’s ecosystem has been overwhelmed and devastated, although co-founder Anatoly Yakovenko continues to assure investors that they have enough financial capacity to stay in business for the next 30 months in their current state.

SOL total market cap at $4.6 billion on the weekend chart | Featured image from Coin Edition, Chart: TradingView.com

Written by khirou

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