Solana NFT Protocol Metaplex announces redundancies after FTX collapse

Stephen Hess, Co-Founder and CEO (CEO) of Solana NFT Metaplex Protocol, has more dangerous that many individuals were laid off in the wake of the FTX collapse.

Hess added that Metaplex, the base layer of the Solana NFT ecosystem, will have to let go of its staff, though its financial management is not directly affected by the FTX crash. It should be noted, however, that the number of terminated employees is not specified.

Can Metaplex Survive the Second Crypto Crash?

Metaplex is the protocol that supports NFTs on Solana, which has established itself as an alternative NFT network to the dominant Ethereum. In January 2022, the Metaplex Foundation raised $46 million, with funding from the likes of Multicoin Capital, Jump Crypto, and NBA legend Michael Jordan.

The crash of the Terra stablecoin system in May 2022 triggered a market crash with lingering repercussions. During the bear market that followed this debacle, Metaplex launched its native governance token, MPLX, in September 2022. The token has since continued to drop below its opening price of $0.88, with the same trading at 0.056 at press time.

On November 10, the Solana Foundation revealed that it had about $1 million worth of assets on FTX before the company paused processing customer withdrawals. These assets are now trapped on the platform, pending the outcome of FTX’s bankruptcy proceedings. Funds amount to less than 1% of their funds.

In addition, the Solana Foundation owns approximately 3.24 million shares of FTX Trading LTD common stock, 3.43 million FTT tokens, and 134.54 million SRM from Project Serum. On November 7, the FTT and SRM tokens were valued at $75.5 million and $101 million, respectively.

Sam Bankman-Fried “SBF” Founded Project Serum, Solana-based DEX in 2020.

SOL decreases by 60%

As the NFT industry faces the consequences of discussions over royalties to creators, NFT sales on Solana’s ecosystem have continued to decline over time.

Solana was one of FTX founder SBF’s favorite networks. With the FTX crash, the Solana SOL token price is down more than 60% on the charts, dropping from $32.74 on November 7 to $13.55 at press time. In fact, the aforementioned consumption was 3 times the percentage drop recorded by the likes of BTC and ETH.

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