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The prolonged crisis in the encrypted market will probably see the struggle of several companies scrambled, some of which are forced to close their operations.
ETCDEV, one of the leading Ethereum Classic development teams (ETCs) created in 2016, is the latest victim of the market crash.
In a tweet published on Monday, the Ethereum Classic team announced that the ETCDEV was closing, citing the current market situation and financial difficulties.
The tweet read:
"Unfortunately ETCDV can not continue working in the current situation and must announce the closure of our current activities."
According to Igor Artamonov, founder of ETCDEV and CTO, the interruption of their activities was mainly due to lack of funds. He said the team had struggled to finance their operations, a fact that attributed to the "market crash, combined with a cash crisis in the company".
Artamonov also noted that they had undertaken several attempts to find alternative sources of funds, but all this had proved useless.
It is interesting to note that the decision to close the store comes only a few days after the software developer has expressed the fear that many start-ups are stumbling, referring to it as "really difficult times".
In a November 27 post on Medium, Artamonov wrote that the markets were collapsing and that several start-ups were starting to lose money. He had added at the time:
"This is a big problem for most companies in our space, and this includes ETCDEV, of course."
Ethereum Classic solicits calm
Hours after the ETCDEV team announced that they would stop due to the cash crisis, Ethereum Classic tweeted its community by pointing out that Ethereum Classic was not just about ETCDEV.
Instead, he noted the tweet, the ETC blockchain talks about a large group of developers – and "a litany of volunteers" – including IOHK, ETC Co-op, ETC Labs. Twisting from the official Twitter account of the network, the ETC team has extorted the community to "keep calm and develop".
Ethereum Classic, like Bitcoin (BTC) and other digital currencies, has seen its prices fall to new lows amid a massive sell-off in the market.
The situation was exacerbated by the acrimonic Bitcoin Cash hard fork which saw UnitedCorp, a Florida-based company, file a heavyweight lawsuit against Bitcoin Cash such as Bitmain, the mining giant's CEO Juhan Wu and Roger Ver.
The collapse has seen companies trying to restructure or reorganize their operations in an attempt to stay in business.
Last week, Steemit, a blockchain-based social media platform, announced it would reduce staff by around 70%. The managing director of the company Ned Scott has put in the worst performance of the market in recent months, a total opposite of their previous bullish predictions.
At the beginning of this week, ConsenSys, an Ethereum development platform, announced that it would be restructured with the launch of ConsenSys 2.0, a move that should see it simplify operations and regain its competitive edge.
Joseph Lubin, who is also a co-founder of Ethereum, wrote a corporate letter in which he told employees that the company could be forced to dismiss staff and eliminate inadequate projects among other measures to "regain, the lean and gritty "startup mentality" that has seen it grow into a successful platform.
But despite the bloodbath crypt, some observe that behind the scenes is happening a lot to suggest that the market may soon take a turn for the better.
According to Barry Silbert, the upheavals in the market are only the growing pains necessary for the growth of industry.
The founder of the Digital Currency Group noted that "revolutionary" developments were occurring, including the creation of the necessary infrastructure for institutional investors on board.
(Source: ETCDEV)
Disclaimer: This is not an investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.
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