About this time last year, the price Petechween Multiply Each time high Approximately $ 20,000. The Enthusiasts Cryptocurrency everywhere boasted about the 2018 wealth would bring, initial currency offers exploded and emerging companies continued to withdraw Record amounts of venture capital. Fast Forward One Year: Petcavine Fell 75 percent to $ 3,700 a meager, Drowning As soon as the rise rises, emerging companies in the industry are paying the price.
The last victim is Bitmain, The provider of recently introduced Petcin Mining devices Its own prospectus To the Hong Kong Stock Exchange. The company confirmed to CoinDesk This week the cuts will start soon: "There has been some adjustment for our employees this year and we are continuing to build long-term, sustainable and scalable business," said a spokesman for Bitmain CoinDesk . "Part of that is to focus on the basic things of that task and not the things that are helping."
Beijing-based Bitmain did not explain how its staff would be affected, Despite rumors – which Bitmain has since denied – on MaimaiA Chinese platform similar to LinkedD said up to 50 percent of the company's staff could be laid off. The news came after the mining giant confirmed that it had closed the Israeli development center, Pitmanc Israel, and 23 employees were released in the process.
Bitmain employs at least 2,000 people, up from 250 in 2016, according to PitchBook, where the company's growth has grown.
"The encryption market has experienced a change in the past few months, forcing Bitmain to study its various activities worldwide and refocus its business according to the current situation," said Bitmaintech Israel head Gadi Glikberg. It said His staff said at the time of the layoff.
Bitmain has collected over $ 800 million in venture capital financing from Sequoia, Coat management, Softbank and more. When evaluating $ 12 billion, quickly rose to become the most valuable encryption companies in the world, surpassing Coinbase, In itself Received an assessment of $ 8 billion This fall.
In its filing for public subscription Bitmain reported more than $ 2.5 billion in revenue Last year, nearly $ 108 million was raised in 2016. For the first half of 2018, Bitmain said it exceeded revenues of $ 2.8 billion. These numbers are amazing, yes, but Whether Bitmain can maintain this momentum This has been questioned, especially as it is preparing for a public offering in what will be the largest IPO related to encryption so far. The encryption market, by its nature, is unpredictable – a property less favorable to investors in the general market.
Emerging companies sacrifice staff
Huobi, supported by Sequoia and ZhenFund, did not immediately respond to the request for comment.
Moreover, it is based in Brooklyn ConsenSys earlier This month was confirmed Shed 13 per cent of its 1,200 staff. The company, active in the encryption ecosystem, embrace and invest in decentralized applications built on the Ethereum blockchain.
"As we are excited about ConsenSys 2.0, our first step in this direction has been difficult: we are simplifying many parts of the business, including ConsenSys Solutions, Speak and the center's services, reducing network members by 13%." Founder of ConsenSys and the Crypto billionaire Joseph Lubin Wrote In a letter to the staff on layoffs.
Finally, Steemit, a distributed application designed to reward creators, Lay off 70 percent of its employees A few days ago, citing bad market conditions.
"We still believe that Steem can be a much better, less expensive, protocol blockchain for applications and that the improvements that will result from this new trend will make it much better for application sustainability," wrote founder and CEO Ned Scott in the current situation. "However, to ensure that we can continue to improve Steem, we first need to get the costs under control so that they remain economically sustainable.I do not want anything more now to survive, to keep steemit.com running, keep the job alive, To create wonderful communities. "
Reduce the following periods of rapid growth – which many crypto startups experienced during The boom of Betcown – Only natural, but can these companies continue to endure periods of extreme fluctuations without being completely shattered? One thing is for sure: if the price of Bitcoin dips more and more, the "staff adjustments" in the small and small encryption companies will be inevitable.