Developing Ethereum browser startup Status reduces 25% of employees due to the ongoing decline in the cryptocurrency market, reports CoinDesk .
According to Status co-founder Jarred Hope, the size of the company was too large for its sustainable development. In particular, the startup was not ready for the fact that the price of Ethereum cryptocurrency would fall by more than 80%.
Last year, the rush around the tokensale Status was so great that it caused massive Ethereum network failures. Nevertheless, the company managed to attract almost 300 thousand ETH .
However, Status representatives say, the project did not have “reliable banking partners” until the second quarter of 2018. Now the company is forced to cut staff by 25 people (about 25% of the total).
The company hopes that Fiat reserves will be enough to cover costs for about six months. Also, the leadership of Status asked employees to agree to lower wages. According to Hope, with the recovery of the market, employees will be able to rely on SNT tokens as compensation.
However, these measures may not be enough for the long-term stabilization of the financial condition of a startup.
“The reality is that we will have to reconsider everything at the end of the second quarter. If the market does not go up, then we will make the organization even more modest, ” Hope added.
Over the next few months, the startup will work on the implementation of the goals specified in the whitepaper, as well as “bring the application to a state in which it will be usable.”
“We will have a large and stable development team with us ,” said Operational Director of Status Nabil Naghdi.
According to him, despite the reduction, the team will also continue to work on the implementation of Ethereum 2.0 under the name Nimbus. In addition, Naghdi noted that Status remains with about 190 thousand ETH and the company is not planning to attract additional funding.
Currently, Status tokens (SNT) with a capitalization of $ 47 million occupy the 67th line of CoinMarketCap.
Earlier, BlockchainJournal reported that Status tokens appeared on the Bitcoin exchange Poloniex , and shortly before that – on the South Korean Bithumb .
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