The bear market has been hitting cryptocurrency startups heavily. This time, none other that Steemit, one of the earlier cryptocurrency platforms were affected. They have laid off a significant part of their staff as a result of the bear market. Their cryptocurrency, STEEM coin, is on a losing streak since January.
Steemit Loses Steam
Steemit, one of the pioneering blockchain platforms, is going through rough times. Ned Scott, their CEO, announced some rough measures to secure the platform permanence during this bear market. Steemit is a blockchain based blog platform that lets writers get rewards for their content. It rose as a Medium alternative, with the difference of being able to reward posts.
The CEO of Steemit states that they will be focusing on diminishing operative costs of the platform to keep operative. He declared:
Given the weakness of the cryptocurrency market, the fiat returns on our automated selling of STEEM diminishing, and the growing costs of running full Steem nodes, we have been forced to layoff close to 70% of the team.
Their native cryptocurrency, called STEEM, lost more than 80% of its value. This makes difficult for them to keep afloat because their earnings come from the automatic conversion of their cryptocurrency. Today, after this announcement, STEEM is 5% up.
Reorganization In Process
Steemit CEO Ned Scott has also informed that they will be focusing on reducing their operative costs to try to stay afloat during these troubled times. He states that:
“We have conducted our first all-hands meeting and are prioritizing all the cost reduction solutions we can accomplish in the near term, including replacing steemd plugins with hivemind, …reduction of Staging and Testing nodes, and eliminating redundancies.”
to save on every little thing they can on.
However, Ned still has faith in Steemit. He thinks that with a little effort, it could become the best blockchain based application of the whole internet. Despite this, he understands these are troubled times. First, he needs to keep the platform running. To conclude, he states:
We still believe that Steem can be by far the best, and lowest cost, blockchain protocol for applications and that the improvements that will result from this new direction will make it far better for application sustainability. However, in order to ensure that we can continue to improve Steem, we need to first get costs under control to remain economically sustainable.
There is no number on how many job posts has the bear market claimed, but this shows us that prices do have a real effect on cryptocurrency startups.