Steemit, one of the oldest blockchains in the cryptocurrency app catalog, is going through rough times. The bear market has caused their native cryptocurrency, called STEEM coin, to lose more than 80% of its value since last December. they have announced that they are laying off most of their staff and running a restructuring of their business model.
Steemit Lays Off 70% of its Employees
Steemit, the popular cryptocurrency and blockchain blog platform, announced yesterday they are going through a series of changes to keep the site afloat. The CEO and founder of the platform Ned Scott informed users via a post on the network. Steemit is a blogging platform that lets users be rewarded by the quality of their posts from others. In that way, they incentivize the posting of good, high-quality content.
Things have evidently gone south, and Scott was forced to take some measures to preserve the platform, explaining “given the weakness of the cryptocurrency market, the fiat returns on our automated selling of STEEM diminishing, and the growing costs of running full Steem nodes, we have been forced to lay off close to 70% of the team.”
In addition to this, the remaining staff will focus on optimizations to get the blockchain running better and save on operating expenses. Scott also noted the company has “conducted our first all-hands meeting and are prioritizing all the cost reduction solutions we can accomplish in the near term.”
The Road Ahead
Scott remains hopeful the company will eventually recover, as cryptocurrency prices bounce back combined with platform improvements will get them to be running normally for the next year. The business model of Steemit involves selling STEEM coins for fiat cash. STEEM coin has lost more than 80% of its value this year.
Regarding the coin’s devaluation, the CEO insists “we still believe that Steem can be by far the best, and lowest cost, blockchain protocol for applications and that the improvements that will result from this new direction will make it far better for application sustainability.” He also recounts how the crisis has made him go back to the drawing board, and how he has found new “assets” that will help him to create what he called the “killer” cryptocurrency app, though details were sparse.
On initial news of the platform’s restructuring, STEEM was up 12%.
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