Poor Blockchain and Cryptoes business dismisses staff to reduce costs as the economy feels the pressure

The cryptocurrency and blockchain companies hear the hit that hit the entire market this year. This has seen some of them dismiss employees. While this has happened, the good news is that the turnover rate of the blockchain industry is still lower than that of many other industries.

More companies have fired workers, simply because the market has not worked as expected. This was particularly the case in companies where they "grew up too quickly" and hired employees because they believed that the 2017 upward trend would continue in 2018

With Bitcoin, the largest currency in terms of transaction volume and market capitalization, taking the heat from all sides, it is unlikely that the blockchain companies will stop firing people.

Since it reached its all-time high of $ 20,000 in the last quarter (Q4) of 2017, Bitcoin, which is the dominant virtual asset, has significantly lost value, losing more than 80%. % of its value in January.

In addition, Ethereum saw its price drop drastically from four lower digits ($ 1400 +) in the last quarter of 2017 to its ridiculous current price of $ 94.

The sudden growth in the value of Bitcoin as well as that of other cryptic has seen the market explode last year, with many exchanges that have made their appearance on the scene. Therefore, it seems that many blockchain and crypto companies have been founded on bitcoin's successful escape in the past year.

Ethereum, Ripple and many others have also established themselves as excellent cryptographic projects with Ethereum which has become the second largest cryptocurrency on the market and a world leader in smart contracts and generalized accounting technology.

The innovations provided by Bitcoin and other popular cryptocurrencies were partly responsible for the industry's high growth rate last year and the incredible number of blockchain developers who have been hired by many blockchain startup companies.

However, the decline in the value of Bitcoin combined with the lack of a massive take-up of the crypto business led to the collapse of a number of digital resources, with many considering leaving the scene at the end of the last quarter ( Q4) of 2018.

A report published in mid-2018 suggested that more than 1000+ initial coins (ICOs) were no longer active and many important and active players on the market were streamlining their operations or even abandoning them.

In order to tighten the belt and maintain realistic profit margins, many blockchain companies are taking stringent measures, especially when the year stops and the bear market persists.

Earlier this month, Joseph Lubin, co-founder of Ethereum and CEO of the startup and blocker software incubator ConsenSys, declared the company's intention to restructure its operations to increase revenue.

Obviously, to do so, they will have to "throw some of the dead weight" – personal fire not performing or unnecessary. With regard to the reduction of expenses, the management of ConsenSys specifically intends to reduce its workforce by 13%. Other implications will include more rigorous projects, new strategies, greater goal, expanded profit margins and extra hours of work (if necessary).

"We have to maintain, and in some cases regain, the lean and gritty start-up mentality that has made us what we are." Now we find ourselves occupying a very competitive universe. […] to "succeed wildly" […] we must recognize that what brought us here probably will not take us there, wherever "there is".

Said Lubin

Other cryptographic companies following ConsenSys' path include the social network Steemit, which announced a 70 percent decline in its workforce at the end of November.