In an article published on Thursday, Forbes is targeting Ethereum co-founder and ConsenSys CEO Joseph Lubin. According to the media outlet, 'Joe Lubin's Ethereum experiment is a mess'.
Chepicap reported yesterday that ConsenSys, is letting go of 13 percent of its staff.
Lubin, Canadian entrepreneur, founder of of ConsenSys and heavy contributor of Ethereum, is currently having a hard time and according to a Forbes report, his Ethereum experiment is a mess.
'In Lubin’s version of the decentralized future, he is the architect, CEO and central banker, funding all of ConsenSys’ 'spokes' from his personal cryptocurrency stash', Forbes writes.
'Cracks in foundation'
'Lubin has yet to veer significantly from this master plan, despite serious cracks in its foundation', the magazine continues. 'For one thing, the Ethereum blockchain faces strong headwinds.'
'Thanks to its perceived technical superiority—largely because it allows apps to be 'embedded' in the blockchain—Ethereum became the launching pad for hundreds of initial coin offerings (ICOs), many of which in aggregate resulted in billions in losses for their supporters. The crypto landscape is littered with the carcasses of ill-fated Ethereum-based ICOs, and now the SEC and other regulators are targeting some of them for enforcement action.' Forbes also points out that 'Ethereum can process only about 20 transactions per second. By contrast, Visa can handle 24,000.'
'Lubin worth less than $1 billion'
Forbes, that first estimated Lubin's worth at $5 billion in the bull market, now states that 'Lubin's global organism appears to be burning cash at a rate of more than $100 million a year.'
'With the price of ether in free fall, down from $1,389 to barely more than $100 today, Lubin’s fortune may have dwindled to less than $1 billion, calling into question how long he can continue to fund his dream. It all depends on how much ether he sold—and when.'
Forbes is questioning whether ConsenSys will survive the bear market. 'ConsenSys will end up in the Harvard Business Review as a case study, either as a lesson on how you change corporate organizational structure or as a disaster.'
Even the giants of blockchain are facing the heavy consequenses of the bear market. Will more layoffs be around the corner?
Read the full Forbes article here.
Actual footage of Joe Lubin pic.twitter.com/jZj5mFpW7q— Panda Facts (@Pr0popanda) December 7, 2018