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Temperatures may have just begun to fall, but cryptocurrencies have been blocked in the winter for what looks like an ice age. For months, blockchain leaders have insisted that the decline in market value has not negatively impacted projects and, if anything, has given developers the opportunity to focus on construction.
The reality is, however, that 700 billion dollars have been deprived of the market value and the crypt recession has put a strain on many of the main projects, the evidence of which is now becoming evident.
If there were any questions about the bears' market impact on space, it was answered when the Ethereum startup ConsenSys incubator revealed a review of its activity in a strategy change that was branded as ConsenSys 2.0. If the price was not the motivator, then maybe it's a sign of a mature industry.
"We are certainly seeing some confusion with the market and the long-term success of ConsenSys" a company spokesman said Crypto Briefing. "We do not see it this way".
Nonetheless, the restructuring goes beyond ConsenSys' headquarters in Brooklyn and will also influence several dozen projects, or races, supported by the company's adventure. But the spokesperson emphasizes that, despite the changes, ConsenSys has not stopped supporting projects, as evidenced by the recent investment in "AZTEC, a protocol for transactions that preserve privacy on the main Ethereum network."
Crypto recession: ConsenSys is getting leaner and meander
ConsenSys founder, Joseph Lubin, wrote a letter to the staff that outlines the review, which includes the transformation of ConsenSys Labs, the venture capital arm that supports Ethereum projects, to resemble a "Traditional start accelerator" according to Breaker.
The rays that have exploited their potential will now have to show more substance. This time, ConsenSys will evaluate projects using a trio of more quantifiable metrics through revenue / ROI, "Benefit for Ethereum" and the social good, the last of which was the battle cry of the blockchain pioneers.
"We will become much stricter in terms of goals and deadlines" According to Lubin, adding that the projects could be "Dissolved" and layoffs are possible.
Some of the safest bets are the most successful, such as MetaMask and Truffle, each of which has more than 1 million downloads, plus the blockade Adhara, which is looking for zero-knowledge evidence and has just completed a $ 2.1 million of funding provided by ConsenSys. And it is useful to keep in mind that the ConsenSys ecosystem boasts over 400,000 developers.
Some of the less successful projects, however, could face a future without the marketing muscles, technology and financial support that ConsenSys puts in place, not to mention the camaraderie that is woven into the fabric of the Ethereum startup incubator.
Among the projects that could be facing the strain:
- The Bounties network. According to Forbes, the blockchain-fueled freelance market has not yet made huge strides, as evidenced by a small group of less than 10, less than $ 50,000 in sales and $ 250,000 in low-income job offers.
- Fathom. The Ethereum smart platform for performance evaluation is another project that may not be cut. In the same way, he has a small team and, like many risky ICOs, he has yet to launch a prototype.
- GovernX. This early startup on the Ethereum blockchain does not offer much of a website, even if I'm looking for a vice president of engineering.
- Civil. ConsenSys had high hopes for this blockchain-fueled startup, but ICO was the victim of poor timing at the end of the cycle and a project that never resonated with investors. As a result, ICO was demolished and investors in the CVL token were repaid, although it is said that the project will live with the $ 3.5 million directed by the ConsenSys Civil Foundation.
While ConsenSys layoffs could be a by-product of restructuring, other projects have less than a war chest to keep them afloat during the recession crypt. Steemit, a decentralized blogging platform, has entered survival mode and is reportedly reducing its workforce by nearly three quarters in the middle "The weakness of the cryptocurrency market, the fiat comes back on our decreasing STEEM automated sales and the increasing management costs of the complete Steem nodes" the company said, according to TechCrunch.
Meanwhile, the weakness of cryptocurrency prices has an ETH poised near the $ 100 level. While Lubin is not priced, he suggested first that if the value falls to $ 1 it would be a sign that there is a problem. We hope you do not get to that.
And while investments may have changed, they have not stopped. There are more in the pipeline, and James Beck, the head of ConsenSys Global PR, mentioned in a tantalizing way Crypto Briefing: "Next week we will announce a high impact investment in critical infrastructure."
The author is currently invested in ETH.
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