According to a report from the Wall Street Journal, OpenSea, one of the largest NFT marketplaces, is laying off 57 people from its workforce.

In an internal memo to employees, Chief Executive Devin Finzer said he would provide the laid-off employees with ample severance, healthcare coverage, and equity vesting. However, the layoffs took place in contradiction to Finzer’s claims in January, where he said that the $300 million in venture capital funds raised would be used to hire 90 new employees and establish a fund for creators.

“The changes we’re making today put us in a position to maintain multiple years of runway under various crypto winter scenarios (5 years at the current volume) and give us high confidence that we only have to go through this process once,” Finzer said.

The NFT marketplace has recently been experiencing a declining user base. The decline started following a June incident where a former employee was charged with fraud and money laundering by the Justice Department, marking the first reported case of insider trading.

Other crypto companies have also been laying off employees due to the market downturn, including U.S. cryptocurrency exchange Coinbase, which reduced staff by 18% in mid-June, and major crypto exchange Crypto.com announced plans in early June to cut over 400 jobs globally, reducing its workforce by 5%.

As crypto winter continues to unfold, the market capitalization of digital currencies is now below $1 trillion – a big drop from nearly $3 trillion in late 2021.