4 months ago 1 min read

Solana Still Facing Problems After FTX's Bankruptcy as Metaplex Layoffs Arise

Solana Still Facing Problems After FTX's Bankruptcy as Metaplex Layoffs Arise

The Solana network's chaos does not appear to be going away anytime soon. A well-known open source network had strong ties to the defunct cryptocurrency exchange FTX. SOL token, a native cryptocurrency asset, has already seen a substantial decline in trading price. Another setback for Solana came with the layoffs at its NFT protocol manufacturer Metaplex.

Stephen Hess, co-founder and CEO of Metaplex, announced the reduction in working staff on Twitter. Hess stated that the corporation made the difficult decision to split ways with a few of the Metaplex Studios team members.

However, the overall number of employees let go was not mentioned.

Hess continued in his seven-tweet thread by stating that because Metaplex serves as the foundation of the Solana NFT ecosystem, the platform is in charge of assuring sustainability over the long run, which will benefit the neighborhood.

The CEO of Metaplex clarified the plan for employment reduction while claiming that "fundamentals remain solid" and that the FTX crash had no influence on the treasury. However, before moving further, "a more cautious approach" is required due to the indirect influence.

The Solana-based NFT protocol Metaplex was developed with the goal of providing an alternative NFT network to the one that was mostly controlled by the Ethereum network.

After some time, Metaplex introduced MPLX, the native governance token for the NFT system. Given that the trade was made during a bad market and its value fell, it was unsuccessful. The excitement surrounding the Solana-based NFT technique gradually subsided. The NFT sales had a sharp fall in October, which coincided with the escalating discussion about the royalties paid to creators.

The instability, over which FTX filed for Chapter 11 bankruptcy, was already being handled by the protocol. Sam Bankman-Fried, the founder and CEO of FTX, gave Solana high marks, so when his reputation took a hit, it had an effect on the network's assets and initiatives.

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