eBay is allegedly scaling back its involvement in the NFT market, having reduced its workforce in the NFT-focused KnowOrigin team by 30%, with founder David Moore no longer actively involved.

Insider reports indicate that eBay intends to withdraw from the NFT marketplace within two years after acquiring the Manchester-based NFT platform KnownOrigin. The move has led to the dismissal of nearly a third of its Web3 division staff.

eBay's venture into the NFT market is facing challenges, highlighted by the sudden exit of key figures and reported discord with KnownOrigin. This raises questions about the direction of eBay's digital collectibles strategy.

The acquisition of KnownOrigin in June 2022 was a pivotal step for eBay into the NFT market. This acquisition was part of eBay's broader Web3 initiative, which included collaborations with Web3 entities like OneOf. Yet, recent developments suggest eBay is reevaluating its commitment to Web3 and NFTs. Reports of Stef Jay's resignation and David Moore's inactivity add to speculations of internal conflicts and dissatisfaction regarding leadership within eBay's Web3 division.

The NFT market, which surged in 2021, faced downturns in 2022 but shows signs of revival with new entrants like BLUR emerging. The anticipated continuation of Bitcoin's bull run in 2024 could further energize the NFT market.

Still, despite positive dynamics, eBay seems hesitant to continue its digital collectibles business, as evident by the recent news.