Staff Cuts Amid Market Downturn
Status, the Ethereum-based chat platform, is shedding 25% of its workforce as it grapples with the recent cryptocurrency slump. This decision comes on the heels of a significant drop in Ethereum’s value, leading the company to reassess its operational viability.
A Brief About Status
Founded in Switzerland in 2017, Status serves as an open-source mobile application that allows users to chat, transact, and explore decentralized applications (DApps). While the idea sparkled with promise, the reality of the cryptocurrency market has taken its toll.
Co-founder’s Perspective
In an announcement, co-founder Jarrad Hope remarked that the company has grown “much larger than we can sustain” in this bearish market. The Ethereum price has plummeted over 80% since August, and the team was caught off guard. Painfully, they lacked stable banking partners, a problem that became apparent until the second quarter of this year.
Strategic Cutbacks
According to Status, the laid-off staff members were deemed “non-essential” for the company’s long-term objectives. The remaining employees face pay cuts but with a silver lining—rumor has it they might receive a stash of Status’ native cryptocurrency, SNT, to brighten their rainy days. Talk about bringing your paycheck home in digital coins!
Plans for the Future
To weather this storm, Status aims to create a financial runway that extends for years. This strategy involves maximizing their remaining fiat resources and their substantial ETH holdings. The remaining team has been urged to channel their efforts towards two pivotal projects—ensuring they deliver on their initial promises and making their application user-friendly.
Wider Industry Impacts
Status isn’t the only player feeling the pinch. Just last month, fellow cryptocurrency platform Steemit trimmed down its workforce by more than 70%. This industry-wide bloodbath can be traced back to a crash on November 14, when Bitcoin’s price nosedived from around $6,400 to as low as $5,506, further aggravating the plight of many crypto ventures.
Current Market Situation
As of now, SNT holds the position of the 67th largest coin by market cap, trading at $0.0134 and down 4.41% on the day. With a market cap nearing $47 million and over 6.8 billion coins in total supply, the situation remains tenuous, illustrating just how shifty the crypto world can be.
