Backed by Gary Vaynerchuk but still unable to whether this crypto storm
•Candy Digital, a sports and entertainment NFT startup, laid off a large part of its staff today.
• The company was founded in 2021 and surged to a $1.5 billion valuation that same year.
• Candy has sold collections based on Major League Baseball, World Wrestling Entertainment, NASCAR teams, and college athletes.
• The market for NFTs expanded significantly in 2021 but has lost momentum in early 2022 amid a broader crypto market decline and wider macroeconomic turmoil.
Another one bites the dust
As the world of non-fungible tokens (NFTs) continues to grow, so too has the list of casualties. Today, Candy Digital, a sports and entertainment NFT startup, announced that it was laying off a large part of its staff. The move comes as the company struggles to find a sustainable business model. Founded in 2019, Candy Digital was one of the first companies to enter the NFT space. The company created digital trading cards for major league athletes and celebrities. It also offered fans the ability to buy, sell, and trade these cards on its platform. However, the company has been struggling to generate revenue.
In 2020, it lost $4 million. And in 2021, it has only generated $1 million in sales. The layoffs will allow the company to focus on its core business of creating and selling NFTs. candy Digital’s CEO said in a statement that the company is “committed to building a sustainable business” and that the layoffs are “a necessary step.” It remains to be seen whether or not this will be enough to save the company.
Just like Candy
Founded in 2021, Candy Digital is a sports and entertainment NFT startup that surged to a $1.5 billion valuation the same year. The company sells collections based on Major League Baseball, World Wrestling Entertainment, NASCAR teams, and college athletes. However, the market for NFTs expanded significantly in 2021 but lost momentum in early 2022 amid a broader crypto market decline and wider macroeconomic turmoil. As a result of this market decline, Candy Digital has laid off a large part of its staff today.
“Not new to this rodeo”
This isn’t the first time that the NFT market has seen a decline. In 2018, the market saw a major drop after reaching an all-time high following the successful launch of CryptoKitties. The current market decline can be attributed to two factors: the general decline in the crypto markets since late 2020 and early 2021, and the overall economic turmoil caused by the COVID-19 pandemic.
The recent market decline for NFTs has caused startups like Candy Digital to lay off staff. The current market decline can be attributed to two factors: the general decline in the crypto markets since late 2020 and early 2021, and the overall economic turmoil caused by the recent fall of FTX. It’s still too early to tell how long this market decline will last or what effect it will have on the industry as a whole; however, startups like Candy Digital will certainly be feeling the pinch as they navigate these choppy waters.
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