OpenSea Considers Acquisitions Amidst NFT Market Challenges
While rumors circulate about OpenSea's potential initial public offering, Finzer remains tight-lipped on the matter.
OpenSea, once valued at $13.3 billion, is exploring the possibility of acquisitions, including being acquired itself, according to Devin Finzer, OpenSea's CEO and co-founder. The NFT marketplace faced a significant drop in its monthly trading volume, plummeting 96% from January 2022 to $171 million. Rival platform Blur has outperformed OpenSea, becoming the top marketplace through strategic initiatives like airdrops. Finzer, while acknowledging Blur's success, remains focused on building a secure platform, stating that Blur has cut corners concerning legal and regulatory aspects. OpenSea, backed by venture capitalists like Andreessen Horowitz and Coatue Management, has not actively sought acquisition but remains open-minded.
Despite its challenges, OpenSea has made strategic acquisitions in the past, including Gem (an NFT aggregator tool), Dharma (a crypto wallet), and Mintdrop (enabling creators to bring collections to market quickly). Finzer emphasized that talent is a crucial factor in acquisitions, particularly individuals with entrepreneurial spirit seeking new opportunities. While rumors circulate about OpenSea's potential initial public offering, Finzer remains tight-lipped on the matter, according to DLNews.
In the face of layoffs last fall, where OpenSea cut half of its staff, Finzer explained that the restructuring aimed to create a leaner and nimbler team rather than being driven by financial pressure. The company's CEO is currently engaged in discussions with executives from luxury brands to develop bespoke NFT projects, signaling a growing interest from content-based companies, fashion houses, and other industries in the NFT space.
