Status Network (SNT) has announced it will cut 25% of its workforce. That way the company can spread out its capital over six months and keep working on its product. This was announced by the company’s co-founder Jarred Hope on Sunday. Status.im is working on a mobile dApp browser and messenger system based on the Ethereum blockchain.
In June 2017 Status raised over 100 million dollars to build its dApps for iOS and Android devices. This amount was crowdfunded within 24 hours. It was one of the many high-profile Initial Coin Offerings that happened last year.
The bear market at the lowering market cap overall, are hurting Status’ finances. Even though they cashed out a great deal of their gathered crypto-coins, there’s still a great deal locked up in the world of digital money.
Because Jarred Hope and his management team don’t know how long the bear market will take, the company needed to take measures into its own hands. Now Status can keep working on their dApps and private messenger system for another six months, without getting into financial trouble.
SNT is currently valued $0.01496, which is up 3.02% in the past 24 hours. At its peak the token was worth 60 cents, losing 97.7% of its value. Besides the loss of value on its own token, the company also has to deal with criticism on the Ethereum blockchain. ERC20-tokens on the Ethereum network are awaiting the next major update, which has been postponed on multiple occasions. On top of that, ETH has been losing value big time, even losing its number 2 spot behind bitcoin to Ripple’s XRP.
Status isn’t the only one cutting in its labor force. Ethereum Classic saw one of its prominent development groups (ETCDEV) close down, because of the lack of funding. Blockchain blogging website Steemit is now operating with 70% less people on the payroll. This and many more examples are the result of a lack of money and companies being forced to reinvent themselves and shutdown.
Also published on Medium.