Bitmain could be in agony
Dovey Wan, an important entrepreneur and cryptocurrency of the Asian cryptocurrency, recently drew attention to a post on the Chinese version of LinkedIn ("usually very high precision, published by the employees themselves") which indicates that Bitmain, the encrypted mining giant in Beijing, it's ready to start a drastic layoff. By post, Bitmain could start a layoff in the next week.
there is a post on Chinese Linkedin (usually very accurate, published by the same employees) that says that Bitmain will start a layoff next week … 😳😳😳
A separate entry said that the plan is for over 50% of its staff ???! pic.twitter.com/b0ZSBuPX4d
– Dovey Wan 🦖 (@DoveyWan) December 23, 2018
Wan, citing sources, said that up to 50% of staff members could be eliminated. And considering that Bitmain presumably has over 2,000 employees, this business decision would undoubtedly be devastating for the entire crypt ecosystem. The Chinese crypt even added that "the impact is [already huge], "Accentuating the fact that this event, if it were true, could turn the mining scene of the cryptocurrency into the head.
These rumors come soon after the fact that Bitmain, apparently estimated at over $ 10 billion, closed its blockchain development center based in Israel, an initiative founded in 2016 that housed 23 employees. A local newspaper said that the closure of Bitmaintech Israel, as the program was dubbed, was the result of the recent debacle of the encrypted market.
Gadi Gilkberg, former head of the center, told Globes:
"The crypto-market has been shaken in recent months, which has forced Bitmain to look at its various businesses around the world and redirect its business in accordance with the current situation."
With this statement in mind, it would not be a surprise if Bitmain is trying to change its business operations around the world, rather than just its office in Israel.
Again, the reason these rumors are probably thrown around is presumably due to Bitmain's probable precarious financial situation, catalyzed by the downward market conditions of 2018 that have plagued every corner of this sector. Moreover, the fact that Bitmain has substantial allocations in Bitcoin Cash (BCH), which recently crashed (but then recovered a lot), has probably put the company between rock and a difficult place, so to speak.
It is not the only case of Crypto Bear Market Blues
The bear market has hit not only (reportedly) Bitmain, but also a number of other cryptographic start-ups.
The status recently revealed that it would cut 25% of staff (~ 25 employees). In a speech to the recent City Hall of Status, Jarrad Hope, the co-founder of the parvenu, said that since the trunk of his company was drastically reduced, it was logical to dismiss "non-essential" employees. Hope has even asked employees to take a wage reduction, in an apparent attempt to extend the Status track, and survive the turmoil in which the cryptocurrencies have been found.
Although such a commercial decision is obviously harsh, some argue that the state has had the ease. Steemit, the private company behind a decentralized media platform that shares its name, has had to undergo a shift in business in recent weeks. As previously reported by Ethereum World News, Steemit CEO Ned Scott took his personal YouTube channel to fire "nearly 70% of the team." The Ethereum ConsenSys development study followed the example, claiming to have eliminated 13% of its employees, it became evident that the distributed startup had overexposed its funding.
While ConsenSys, Steemit and Status are obviously in difficulty, metaphorically speaking, some startups have been completely erased from the face of the Earth. ETCDEV, a major development consortium in the Ethereum Classic ecosystem, has been running for just two weeks, with the CTO of the company citing financial restrictions as a catalyst for the collapse of the group. This revelation comes just days after Artamonov, the company's CTO, released a Medium article that denigrates one of his peers for being a "Trojan horse" for another team.
Title Image Courtesy of Samuel Zeller Via Unsplash