eBay Rethinks NFT Strategy Amid Web3 Team Layoffs

Ebay signboard stamped NFT

eBay is reportedly reassessing its approach to NFTs after making significant cuts to its Web3 division. According to NFTgators, more than 30% of the Web3 team has been laid off, including Stef Jay, the business and strategy officer. The relationship between eBay and KnownOrigin, a previously acquired NFT marketplace, has deteriorated, leading to the departure of David Moore, one of Knownorigin’s founders. As a result, eBay has suspended all digital art initiatives.

Soured Relationship

eBay’s recent actions suggest a significant shift in its stance toward the NFT market. According to reports, the company has undergone substantial restructuring within its Web3 division, resulting in the departure of key personnel and the suspension of digital art initiatives. Stef Jay, the business and strategy officer of eBay’s Web3 division, has reportedly resigned, and David Moore, one of the founders of the acquired NFT marketplace KnownOrigin, has been laid off.

The relationship between eBay and KnownOrigin appears to have soured, contributing to the uncertainty surrounding the future of NFTs on the eBay platform. The fallout from these internal changes has led to internal dissatisfaction, with some employees expressing concerns about the direction and leadership of eBay’s Web3 endeavors.

A Lack of Strategy

“Many within the company are unhappy, blaming the lack of leadership and strategy for the layoffs. There are internal criticisms, even at senior levels, questioning the qualifications of the current head of web3 as well as eBay’s strategy team,” a source familiar with the matter said.

eBay’s foray into the NFT space began with its acquisition of KnownOrigin in June 2022, followed by the purchase of the trading card marketplace TCGplayer two months later. These moves were seen as eBay’s attempts to expand its digital collectibles business and capitalize on the growing interest in NFTs.

Reassessing NFT Strategy

However, the recent layoffs and suspension of digital art initiatives suggest a potential reassessment of eBay’s NFT strategy. The company’s decision to scale back its Web3 operations raises questions about its long-term commitment to the NFT market and its ability to navigate the rapidly evolving landscape of digital assets.

The developments at eBay highlight the challenges that traditional e-commerce platforms face as they navigate the emerging world of blockchain technology and digital collectibles. As eBay reevaluates its approach to NFTs, industry observers will be watching closely to see how the company adapts to the changing market dynamics and whether it can regain its footing in the digital asset space.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.