A third round of layoffs at Dapper Labs in less than a year has resulted in the announcement of the departure of another 51 workers.
Layoffs at NBA Top Shot Developer Dapper Labs Are Increasing Day by Day
As many as 51 employers are departing the company, according to an email issued to the team members and shared on Twitter by the company’s CEO Roham Gharegozlou.
The decision was incredibly difficult because of the amazing people affected but it is necessary and the right thing to do is to ensure a lean and efficient Dapper Labs,
Gharegozlou
The Rise of Dapper Labs and Crypto Winter
In 2017, the Vancouver-based Dapper Labs introduced CryptoKitties, a blockchain-based game with collecting kitties each of which was connected to an NFT. This was one of the initial tests with NFTs. In March 2021, the business raised $305 million, putting its post-funds valuation to an astounding $2.6 billion, according to reports.
However, Dapper Labs had to lay off 22% of its personnel in November 2022 and another 20% in February of this year as a result of the impending crypto winter. There are presently 361 employers listed on the company’s LinkedIn page.
With this restructure we have made the business more lean, which is going to let us do the right thing for our fans and grow our communities in the most healthy ways possible,
Gharegozlou
Are NBA Top Shots Collection NFTs Securities?
An ongoing class action lawsuit against Dapper Labs claims that the company’s NBA Top Shots collection of NFTs are securities and, as such, need to be registered with the Securities and Exchange Commission.
Days before the previous layoffs, the judge in charge of the case rejected Dapper Lab’s request to have the lawsuit dismissed in February of this year. He or she reasoned that the NFTs sold on its platform do indeed appear to meet the criteria of security.
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