eBay reportedly lays off over 30% of its Web3 division staff, signaling a potential shift in NFT and Web3 strategy. Acquisition of KnownOrigin and partnership with OneOf affected. Falling out with KnownOrigin alleged. Crypto bear market impact noted.
E-commerce giant eBay seems to be reassessing its approach to NFTs and Web3, as reports suggest a significant reduction in staff within its Web3 division, amounting to more than 30% of its workforce.
According to an initial report from NFT news outlet NFTgators, sources reveal that numerous employees involved in Web3 operations have recently departed from the company.
This development follows eBay's acquisition of Manchester-based NFT marketplace KnownOrigin in June 2022, integrating its team and intellectual property into the company's Web3 division. Prior to this acquisition, eBay had a concurrent partnership with OneOf, a Web3 company focused on music NFTs. Subsequently, eBay further expanded its digital collectibles business by acquiring TCGplayer for $295 million.
The report also notes the resignation of Stef Jay, eBay’s business and strategy officer for the Web3 division. Additionally, David Moore, a founder from KnownOrigin, has reportedly been laid off, though it remains unclear whether this was an isolated case or part of a broader staff reduction.
According to NFTgator's sources, a discord arose between KnownOrigin and eBay, leading to the latter halting all plans for NFTs and other digital collectibles on its platform.
“Many within the company are dissatisfied, attributing the layoffs to a lack of leadership and strategy. There are internal criticisms, even at senior levels, questioning the qualifications of the current head of Web3 and eBay’s strategy team,” the source states.
The extended crypto bear market of recent years has significantly impacted the interest and sales of NFTs. However, certain newer collections, including Pudgy Penguins, Mutant Ape Yacht Club, Moonbirds, Mad Lads, and Quantum Cats, have experienced a resurgence in interest. Bitcoin Ordinals have also gained traction since their introduction in mid-December of the previous year.
Forbes data indicates that the global NFT market cap has now reached around $50 billion, with a trading volume of $46 million in the past 24 hours.
Despite these market dynamics, it seems that eBay is either undergoing a strategic shift or simply streamlining its Web3 initiatives in a more efficient direction. The company, however, has not officially commented on or confirmed the reasons behind these organizational changes.