The entire market cap of the cryptocurrency space is now $125 billion. That’s almost ten times as much as it was in 2016, but obviously a big blow compared with the December 2017 numbers. After much growth and investments crypto development teams need to rethink their business. Steemit has cut 70% of its workforce, while ETCDEV has been forced to stop altogether.
During the ridiculous growth of the 2017 bull run, development teams and tech businesses rushed to hire people and build their products. Money was everywhere and it required little business sense to make profit. Now that crypto is in a bear market, it requires real business sense to get around. This recently resulted in some major shifts.
This week the Ethereum Classic (ETC) community was hit by sad news. ETCDEV was one of money independent development teams working on Ethereum Classic. This coin has seen some big developments over the past 12 months, but it’s still considered the little brother of Ethereum. With the coin dropping in value and the community not willing to invest in the team, ETCDEV was forced to close.
Social networking website Steemit recently announced they cut 70% of their workforce. Steemit is a blogging and social networking website where curators and publishers of content can earn crypto called STEEM. The fact that they cut such a big part of their workforce and still believe they can operate properly, clearly suggests that Steemit has been hiring like crazy without making much business sense.
Both Steemit and Ethereum Classic are coins that will still exist. Over the years there have been plenty of abandoned projects. Some of them never caught on, others are just scams, but there are plenty of dead coins out there. Not that long ago I saw Drip (DRIP) and Giga Coin (XG) plummet to zero value when the developers exit scammed their community.
Projects like Coin Janitor try to accumulate these dead coins in an effort to ‘clean up’ the cryptocurrency space. While Deadcoins.com keeps track of all ‘dead coins’. They’ve listed 182 coins as a scam, but 680 projects as deceased. Coins like Bitcoal and Desire have had their developer(s) abandon the project, most likely because of the lack of funding.
Also published on Medium.