Key Takeaways:
- Strategic Workforce Reduction: Sky Mavis is cutting 21% of its workforce, citing a strategic realignment focused on long-term growth rather than financial instability.
- New Axie Infinity Game: The company plans to develop a new Axie Infinity game while enhancing its Ronin Wallet, Mavis Marketplace, and Web3 initiatives.
- Declining Blockchain Asset Values: Axie NFTs and tokens like AXS and SLP have seen significant value drops, though the Ronin blockchain token (RON) has shown relative resilience.
Sky Mavis, the company behind Axie Infinity and the Ronin blockchain, has announced a 21% workforce reduction to realign resources with its long-term vision.
CEO Trung Nguyen clarified that the layoffs reflect a strategic shift rather than financial instability, aiming to position the company for growth in 2025 and beyond.
2024 has been a transformative year for Sky Mavis. The Ronin Wallet surpassed 10 million downloads. Today, Ronin is the third most used Blockchain in the world with more than 1.1 million daily active addresses.
— trungfinity.ron (@trungfinity) November 23, 2024
As crypto-friendly policies gain traction, we anticipate a wave of…
Affected employees will receive severance packages and career support.
The company is reallocating resources to develop a new Axie Infinity game and advance other initiatives, including improvements to the Ronin Wallet, Mavis Marketplace, Web3 game publishing, and the expansion of the Ronin Network.
Details of the new game remain undisclosed, but Sky Mavis is optimistic about its future.
Sky Mavis lays off 21% workforce https://t.co/BuQvhL4xH1
— Tech in Asia (@techinasia) November 25, 2024
However, the blockchain assets associated with Axie Infinity have faced significant declines.
The floor price of Axie NFTs has dropped from over $700 in 2022 to $0.33, and the AXS token has fallen from its 2021 peak of $164.90 to approximately $8.07.
Similarly, the Smooth Love Potion (SLP) token is down from $0.39 in 2021 to $0.0036.
The Ronin token (RON) has performed better, reaching $4.45 in early 2024 before settling around $1.77.
Sky Mavis hopes its strategic pivot and new game development will revitalize its Web3 ecosystem.
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