In a surprising turn of events, eBay, the renowned e-commerce platform, is facing speculation about its commitment to the world of Non-Fungible Tokens (NFTs). According to NFT Gators, a source close to eBay's web3 division has disclosed that the company recently executed layoffs affecting over 30% of its web3 team.

The revelation raises questions about eBay's stance on NFTs, particularly considering its significant investments in the digital collectibles market. The development comes just a year and a half after eBay's acquisition of the Manchester-based NFT marketplace KnownOrigin in June 2022.

The acquisition saw KnownOrigin's team and intellectual property integrated into eBay's web3 division, following a prior collaboration with green web3 company OneOf, focusing on Music NFTs.

Founder Made Redundant

Adding to its digital collectibles portfolio, eBay made headlines by acquiring the trading card marketplace TCGplayer for a substantial $295 million just two months after securing KnownOrigin. However, recent events suggest a potential shift in eBay's web3 strategy. Stef Jay, the business and strategy officer of the web3 division, has resigned, and David Moore, one of the founders of KnownOrigin, has allegedly been made redundant.

Sources indicate a strained relationship between eBay and KnownOrigin, casting a shadow over the future of NFTs on the eBay platform. According to the same insider, eBay has put a halt to all plans related to digital art.

Internal discontent seems to be brewing within eBay, with dissatisfaction reportedly stemming from perceived leadership and strategic shortcomings. Allegedly, criticisms have been voiced, even at senior levels, questioning the qualifications of the current head of web3 and eBay's strategy team.

As the digital asset market navigates the aftermath of the bear crypto market observed in the previous year, the layoffs at eBay may be interpreted as a strategic reorganization. The NFT landscape, which experienced significant hype in 2021 and 2022, could be undergoing recalibration in response to market dynamics.

NFT Gators reached out to both eBay and KnownOrigin for comments on the situation but received no response at the time of writing. The uncertainty surrounding eBay's web3 division and its implications for the NFT market will undoubtedly be closely monitored by industry observers in the coming weeks.