How to survive the bear market according to Blockfolio's CEO

14 Jan, 2019 | Updated: 14 Jan, 2019
by Will Heasman
News
How to survive the bear market according to Blockfolio's CEO

The ongoing crypto winter has proven treacherous, not only for those who hold a substantial portfolio but for the companies providing and supporting the ecosystem.

Blockfolio is not exempt from this frost, recently letting go of 9 employees, signaling the bear market as the reason and unfortunately following the stead of many contemporary companies such as ShapeShift, Bitmain, and Huobi.

However, Blockfolio CEO, Edward Moncada, recently gave an interview to Cryptoslate regarding tips for how companies could survive, even thrive during the crypto winter. (Spoiler: it includes firing staff…)

Following the recent news that despite its $11.5 million funding round back in October - which saw both Huobi and BitMEX invest in the company -  Blockfolio has still incurred layoffs; the company has been accused of miscalculating funds and extravagant spending, something Moncado refutes:

“We fly economy to conferences, and even go so far as sharing hotel rooms… even though we buy lunch for our employees every day at the office, the decision was calculated to boost productivity… [employers] usually lose an hour per employee when they go out to lunch.”

 

These accusations come from anonymous sources citing that the team grew beyond what was required:

“We didn’t need 40 people. Look at delta.app [a competitor] – they have like a dozen people. Why did Blockfolio need to grow like that?” said the source in an interview with The Block.

Interestingly, Moncada addresses this very issue:

We wanted to avoid ripping off a major limb, like some of these other companies have done. Employees become fearful when their jobs are at risk… [and] companies need to be tactical with their funding.”

Moncada added that cutbacks were made due to delivery on “runway targets” rather than the falling price of crypto:

“Early stage, non-revenue generating startups typically raise enough cash on hand to have 18 to 24 months of runway. We made cutbacks to ensure that we will deliver on our runway targets… These proactive cutbacks ensure we fall comfortably in that 18 to 24-month window.”

Blockfolio also lost its incubator program in the process of ensuring these targets:

“We shut down Datablock so our company wouldn’t be spread too thin. Our core business is portfolio tracking, and we didn’t want to do two things that would distract from our primary focus.”

In regard to crypto winter Moncada stated that buying in was best in times of peril:

“From a risk perspective, it’s better to get in during a period of accumulation, when the market’s sideways. When you see the market going straight up, you know it can’t go on forever. Buy when there’s blood in the streets.”

Read more: Blockfolio laying off staffs, many questions the $11.5M funding they just received; Blockfolio raises $11.5 million with exchanges BitMEX and Huobi as investors

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