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Blockchain, Cryptocurrency-While investors remained with the downward market crypto account, with this week seeing a relative low for Bitcoin from the $ 20,000 peak in December 2017, cryptographic-based startups had to deal with the fallout.
December 6th Bloomberg he reported on a succession of cryptocurrency startups that are closing their doors amid the latest Bitcoin price path and the wider altcoin market, starting with ETCDEV, the group behind the launch of Ethereum Classic.
ETC, seventeenth in terms of market capitalization with a value of over $ 400 million, announced last week that it will close the store due to a lack of funds and the inability to raise more capital to keep the project afloat . Igor Artamonov, founder of ETCDEV and the forked currency of Ethereum (ETH), spoke in an interview about the status of his company in the context of the broader declining market,
"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 ".
ETCDEV is not the only cryptography-based company to succeed on the current market, with the Bloomberg report including shares of ConsenSys, a software company based in New York, to cut the workforce by 13% as a direct consequence of the fall in the price of coins. In November, the Steemit Inc. content publishing platform, which also created the Steem (STEEM) currency to facilitate internal transactions, had to lay off 70% of its employees.
Bloomberg attributes most of the blame to projects that extend excessively on digital resources, creating significant losses due to the current bear cycle of 2018,
"Many companies are suffering because they have retained some of their funds in digital assets, either in tokens sold through initial coin offerings or in Bitcoin and Ether, which have served as a preferred medium of exchange in the cryptic world. prices have plummeted this year by over 90% and their so-called digital portfolios have been reduced, many developers have discovered they could not raise additional funding. "
With the decline in encryption prices and the demand for ICO, many projects that made a fortune by collecting coins in exchange for issued tokens had to face the negative effects of a market collapse. In addition, the fundraising landscape has moved significantly, with projects that are no longer able to raise millions on a single white paper or include "blockchain" in a company title.
In a sense, the declining market could have the effect of pushing the best projects on top of the pile, with the efficiency being valued for greed. Given the sudden cryptocurrency crisis that occurred in 2017, with rising coin prices of several thousand currencies for many currencies by the end of the year, the gold rush for blockchain and ICO created a race that still has negative effects on the industry. The focus has been on project launching rather than promoting durability, quality and use in the real world – a hallmark of an inflated and arrested industry.
With prices and market recovery at a valuation than over a year ago, cryptocurrency will find itself having to do more with less, which includes focusing on the development routes that will lead to maximum adoption by Main's customers. Street as they attract the interest of Wall Street investors.
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