Considering the current bear dominated market conditions, there has been reporting of several crypto companies trimming their WorkForces. Steemit, a social media platform where everyone gets paid for creating and curating content has joined the leagues of companies trimming its workforce.
Steemit CEO Explains
In a three minute YouTube video, the Chief Executive Officer of Steemit, Ned Scot, has explained some few things about cryptocurrencies which are targeted at creating awareness for it, hence, encouraging people to start engaging in its use. In the video, he also explained the reason behind the lay off of 70% of their staffs.
According to him:
“While we were building up our team over the last months, we had been relying on projections of basically a higher bottom for the market… Since that’s no longer there we’ve been forced to lay off more than 70% of our organization.”
Scott explained in the video that the decision was taken after the management board of the company met to find a way to reduce loss and cut excesses, at the end of the day, they all concluded that the reasonable thing to do at the moment is to lay off some of their staffs. Even with his explanations, the CEO failed to give a specific number of the staffs whose appointments were terminated, hence, at the moment, we can’t say what their actual number is.
Despite a drop in its workforce, the platform’s native crypto, STEEM has rallied and it has reported a gain of up to 12% in 24 hours.
Steemit is Not Alone
According to a recent report, a crypto focused venture Capitalist firm, known as Mike Novogratz’s Galaxy Digital recently lost a huge amount of money. The money lost by the firm was estimated to be around $136 million trading Ether, XRP and Bitcoin since the beginning of the year.