STEEM parent company lays off 70% of their staff

28 Nov, 2018
by Alberto Arnaldo
News
STEEM parent company lays off 70% of their staff

The latest price crush is starting to affect the viability of some projects. Today, the company giving support to STEEM announced that they will be downsizing their team to cut costs and guarantee the future viability of their platform.

According to a post on Medium by Ned Scott, founder and CEO of Steemit, the company will be letting go 70% of their workers. The other founder of the project, Dan Larimer, is also responsible for the creation of BitShares and EOS.

Scott cited general market weakness, diminishment in fiat returns on STEEM automated selling and the growing cost of running nodes as the reasons that led to the lay-off.

It remains to be seen if Steemit, Inc. will be able to overcome this hurdle. Their service is based on a blogging and social networking site, which uses the STEEM blockchain to reward content creators and other members of the community.

During this year it kept on attracting new users until exceeding 1 million accounts, as we reported. At press time, STEEM was the 48th cryptocurrency by market cap, down more than 95% from its all-time high.  

Members of the crypto community regretted the situation of Steemit, while raising concerns about their financial management. User @hasufl called out the mismanagement of returns from automated token selling, while @WhalePanda replied mentioning possible consequences for EOS:

Read more: Whale statue uses cryptocurrency (Steem) to spray water

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