OpenSea Acquires Dharma Labs, Names New CTO

OpenSea Acquires Dharma Labs to Enhance Web3 Capabilities

OpenSea, a leading NFT marketplace, is strategically investing its recent funding by acquiring Dharma Labs, a crypto wallet startup. This acquisition was publicly announced today by OpenSea.

Prior reports, published earlier this month by Axios, indicated that negotiations were underway for a deal valued between $110 million and $130 million.

Dharma Labs' Functionality and Upcoming Changes

Dharma Labs provided an Ethereum wallet enabling users to seamlessly link their bank accounts. This facilitated the purchase and exchange of tokens within the broader DeFi ecosystem.

Following the acquisition, OpenSea will discontinue the Dharma app. This decision is anticipated to generate discontent among existing wallet users, who will be given a one-month timeframe to transfer their assets to alternative accounts.

Leadership Restructuring

Nadav Hollander, a co-founder of Dharma Labs, will assume the position of OpenSea’s new Chief Technology Officer as a result of this transaction.

Alex Atallah, OpenSea’s previous CTO, will transition into a new role focused on overseeing the development of OpenSea’s web3 and NFT ecosystem.

OpenSea's Vision for the Future of NFTs

“We believe that NFTs are poised to become a central element of crypto adoption, and this can only be achieved by making NFT usage accessible and enjoyable for everyone,” stated Devin Finzer, CEO of OpenSea, in a recent blog post.

Addressing Centralization Concerns

As OpenSea has evolved from a smaller platform to a $13.3 billion crypto company, some users have voiced concerns regarding the platform’s level of centralization. They argue that early adopters haven’t proportionally benefitted from the company’s increased valuation compared to its investors.

Despite the emergence of competitors such as Rarible, Zora, and LooksRare, OpenSea remains the dominant force within the NFT landscape.