Bear Market Forces Ethereum Startup to cut 25% of its employees

A blockchain startup that has raised operational funds in Ethereum has arrived in the middle of the so-called "winter crypt".

The status, as the project is called, has recently announced that it has fired 25% of its workforce by citing economic scarcity. In a recently posted blog post, the start accused the extended bearish correction of this year in the cryptographic market for their decision. He explained that over 1/3 of their total funds collected were in ether tokens, the native token of the Ethereum project, whose value has plummeted more than 80% from its historical high.

Expected loss of $ 2.64 million

The state, at the time of its ICO, had raised as much as $ 100 million in cryptocurrencies to create an open source messaging platform and mobile browser based on Ethereum. The startup was able to convert some of its funds into fiat to take care of its operating costs, but the remaining cryptographic balance stuck in the 2018 bear cycle. It could have cost a minimum of $ 2.64 million in losses. , according to a general estimate.

Jarrad Hope, the co-founder of Status, stated that his company is not sure when the market will recover, stating that the sentiment of the currency obligation has remained the longest compared to the previous ones.

"So, we're stretching our fiat as it is today to provide six months of security on our operating costs – to do this we have to undress the organization." Currently, 25% of our roles are not essential to these goals. and for our long-term growth projects, and unfortunately we are forced to ask the contributors to take them to leave today ".

The remaining labor force in Status, meanwhile, would suffer wage cuts unless the crypto market recovers.

Divan, one of the presumed contributors to the development of the core of Status, confirmed that he had received a letter of dismissal from the company.

"How can you build a community, if you throw out the main contributors with the words" we do not need you? "," He replied in response to Hope's news.

Similar cases

The collapse of the cryptocurrency market has also weighed on other blockchain projects. ETCDEV, the development team behind the Ethereum Classic project, has halted their operations due to economic scarcity. The Consensys of Joseph Lubin, one of the world's most important cryptographic development startups, has also reduced the workforce by 13% in what he called a "reorganization".

"We are part of this trend," said Igor Artamonov, founder of ETCDEV.

"There are some things that happen at the same time, I'm sure if it happened a year ago, it would not be a problem, a year ago there was a lot of free money in the market, but in a bear market c & # 39; it is a change ".

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