December 17, AtoZ Markets – Due to the serious underperformance of the tokens generated via initial coin offerings (ICO), compared to Bitcoin (BTC) and Ethereum (ETH), many projects funded by the ICO had to take drastic measures to survive.
Certain ICO’s Continue to Devastate The Ethereum War Chests
Data collected by Sentiment – a crowd sourcing database of cryptocurrency projects provided the latest observations of some ICO funded projects. According to the database report, over the past 30 days, ICO-funded startups have spent (sold) 416,000 ETH. At the current price of Ether at $87, this amount is equal to $ 36.19 million. According to the crypto experts, this influx of liquidation orders is considered the most noticeable since this summer. SingularDTV, one of the leading Sentiment analysis objects, was Ether’s largest sponsor last month, reducing the ETH balance to 165,000 after using 60,370. Aragon and Cyber Network, following SingularDTV’s example, spent 50,000 ETH in the aforementioned time frame. Nevertheless, it is important to note that in Ethereum-oriented projects, millions of Ether still remain untouched.
Startup Projects’ Employees Losing Their Jobs
Status a chat-oriented application that was an active sponsor of ETH last month, recently announced a reduction of 25% of its employees. Jarrad Hope, the co-founder of the startup in his recent interview explained that it was logical to dismiss the “underage” employees as the company’s chest had shrunk dramatically. Hope added that he asked his staff to reduce their salaries, clearly seeking to survive the confusion of cryptocurrency. Although such a business decision seems rather tough, experts say it was easy for the Status leadership.
Another private company Steemit-a blogging and social networking website owned by Steemit Inc that uses the Steem blockchain to reward publishers and curators also had to undergo changes in their business in recent weeks. As it was previously reported, Steemit CEO Ned Scott through his personal YouTube channel fired “about 70% of the team.” One more company Ethereum ConsenSys Development Studio followed the lead of the manager, saying that it had dismissed 13% of its employees. Although ConsenSys, Steemit, and Status are clearly going through hard times, the fate of some startups is sadder. ETCDEV, a leading development firm behind Ethereum Classic (ETC) will be shutting down soon. The company had struggled to raise sufficient funds in order to continue its operations. ETCDEV technical director called financial constraints a catalyst for the breakup of the group. This discovery appeared a few days after Igor Artamonov, the company’s technical director, published a Medium article in which one of his colleagues criticized him for being a “Trojan horse” for another team. ETCDev’s founder and CEO said on Twitter earlier that they had no choice but to shut down immediately. A shortage of ready cash and a drop in the value of the company’s crypto assets meant ETCDev was no longer financially secure.
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