Joseph Lubin, co-founder of one of the world’s most popular cryptocurrency platforms, Ethereum, and head of its ecosystem’s largest company, ConsenSys, has had enough bad press. Headlines have been screaming about layoffs and austerity coming to ConsenSys, a global company with hundreds of employees and very ambitious projects. Just minutes ago, Lubin took to the good old fashioned rant in hopes of setting the record, as he sees it, straight.
Ethereum, ConsenSys Co-Founder Calls the “Cryptobottom of 2018”
“I am calling the cryptobottom of 2018,” Joseph Lubin announced defiantly. “This bottom is marked by an epic amount of fear, uncertainty, and doubt from our friends in the 4th and crypto-5th estates.” Those ‘estates’ are, of course, business media and its crypto subset who’ve been all too keen in burying especially his beloved company, ConsenSys during a rather ugly bear market.
At the very least, his company has followed the broader crypto market collapse of 2018, and ether, the coin around which ConsenSys is built, lost its coveted second spot below bitcoin core (BTC) this year for a lot longer than just a simple trading of places would evidence. Rumors about scaling, trouble with development roll outs, probably all contributed to its fall, which is tough on projects immersed within its ecosystem.
“What I’ve witnessed among the chattering class the past few weeks,” Lubin continued, “in response to @ConsenSys 2.0 is a rather typical tune: the alarmed, the eulogistic, and the gleeful. We have been on the receiving end of an epic amount of conjecture and preemptive paranoia — filled with damning rhetoric about situations journalists and bloggers don’t have real data for, actual insight into, or understanding of.”
A Healthy Rebalancing
Reports over the last month have placed major stress on ConsenSys feeling the pinch of lost market cap, and layoffs appeared fast and massive by some accounts (at least 13%). Then again, if a company employs a lot of people, firing “hundreds of employees” might not be such a big deal in the scheme of things (unless you’re the one being fired, of course).
Lubin’s net worth at the start of the year was around $5 billion, and the company he founded three years ago had been expanding into some different areas, to put it mildly. Electricity sales, media platforms and distribution, real estate trading, blockchain explorers, applications, prediction markets, identification programs, were all said to be spokes of the ConsenSys hub. At one point, it’s believed the company employed upwards of 1,000 people.
“ConsenSys remains healthy and is engaging in a rebalancing of priorities and activities which started about nine months ago,” Lubin stressed. “We are creating transitions for some projects that we believe don’t fit as well into the ConsenSys 2.0 vision as they did in ConsenSys 1.0, and we are working on ways to continue to support these projects going forward as we sketch plans for a ConsenSys alumni network.”
Sky Not Falling
For the ethereum-related camp, this bear market has been a sorting out process, and it has meant much more scrutiny of associations and businesses. One of its largest companies failing or appearing to wither can’t be good for short term prices, and this inevitably puts even more pressure on the value of ether coins, tokens.
“We continue to invest in external projects, and continue to hire for internal projects that remain core to our forward looking business. We actually hired around fifteen people in the last week or so, and have job descriptions that we are currently hiring for,” he noted. “The sky is not falling. From my perspective the future looks very bright. I remain excited about scalability solutions that are available now [….] Peaking into 2019, if you could see the landscape through my eyes, you’d have to wear shades.”
Another Ethereum co-founder, Vitalik Buterin, chimed in, adding, “Expand up to 1,100 people, shrink to 600, keeping the 6/11ths that are most productive: OMG consensys is dead! Expand up to 600 with no shrinking, announce every step of the expansion: wow, the company is prospering! Lulz.”
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