Steemit Responding to the Market: More than 70% of Staff Laid Off

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The bear market is already affecting blockchain job security. It’s nothing new that companies lay off employees in harsh market conditions. Steemit however, has laid off more than 70% of its staff. If the bear market continues that number might go even higher.

Ned Scott, the founder and CEO of the blockchain startup released a Youtube video addressing the issue:

“I’m addressing you all today because the crypto market has bottomed out in a big way, far further than we expected. While we were building up our team over the last many months, we were relying on projections of basically a higher bottom for the market. Since that is no longer there, we’ve forced to lay off more than 70% of our organization.”

In the address, Scott discussed the company’s strategy for the future. He mentioned the teams have already met and restructuring has begun on many levels. With the current market prices for major cryptocurrencies, fiat returns are simply no longer covering the currently-growing costs of running full Steem nodes.

Steemit launched back in March 2016. The blockchain startup was an original idea and it combined the range and use of a social media platform and the use of blockchain technology. The platform rewarded active content creators with its own STEEM tokens.

Steemit was a revolutionary idea

When it was launched Steemit quickly became one of the largest cryptocurrencies operating on the blockchain space. The total market cap was roughly $157 million. Nowadays, Steeimit is ranked 48^th and the market cap is roughly $106 million.

Scott believes that the company’s final course has been altered due to the rough market conditions. He said that the company will do its best to fight the market’s very harsh conditions.

“Survival is now the thing I want most. To keep the platform alive and well, make great communities and keep the missing going.”, said Scott.

The company’s priority at this time would be cost reductions. Scott said that the company is committed to being transparent and will try their best to remain innovative and keep building the future.

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