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The browser startup Ethereum Status.IM is cutting a quarter of its staff due to the continuing decline in cryptocurrency prices.
Announcing the move internally on Monday, co-founder Jarrad Hope said that the start is much broader than what can be sustained due to the fact that the company has not expected that the price of ethereum will fall by more than 39; 80%.
The COO Nabil Naghdy has publicly confirmed the layoffs once reached by CoinDesk on Friday.
The company originally raised 182,000 ETHs during a token sale last year, which was worth $ 64 million at present (at current prices, the same amount of ether is worth about $ 15.5 million). Status.IM also did not have "solid banking partners" until the second quarter of this year, exasperating the issue, he said.
As such, Status.IM has cut 25% of its staff – about 25 individuals – on Monday. Those fired are considered "non-essential" to the project's long-term goals, according to Hope.
The company is trying to extend its holdings in fiat currency to cover expenses for about another six months. The status is also asking current employees to accept salary cuts, "which will lighten as the market resumes," said Hope. Employees will then receive more SNT tokens "to help offset the cut".
However, this may not be enough, as Hope continued to explain:
"The reality is that we will have to make another assessment at the end of the second quarter, that if the market will not be collected we will be forced to make the organization even leaner, and the remaining fiat and our large ETH participations will be used to create a track measured in years. "
The priorities of the startup in the coming months are to keep the promises made in its white paper and "to make the application into a usable state," he wrote.
Naghdy told CoinDesk that despite the cuts, "we continue to have a large and stable team of engineers", working both on the promises of the white paper and on an implementation of ethereum 2.0 called Nimbus.
Aside from legal holdings, the state has about 190,000 ETHs to exploit as a resource, Naghdy said. The company's six-month runway is based exclusively on equity holdings and the company has no plans to continue further fundraisers.
Empty image of the desk through Shutterstock
This article has been updated for clarity.
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