Blockchain startup Steemit is laying off almost 70% of its staff due to the prolonged crypto bear market.
“While we were building out our team over the last many months we have been relying on projections of basically a higher bottom for the market and since that’s no longer there, we’ve been forced to lay off more than 70 percent of our organization and begin a restructuring,” Steemit founder and CEO Ned Scott said in a video address on Thursday.
The address did not indicate the number of Steemit employees before the layoff. Regarding the low market prices’ implication for major digital currencies like Bitcoin, Scott stated in a blog that “fiat returns” are no longer enough to cover the “growing costs of running full Steem nodes.”
Steemit utilizes the blockchain technology to incentivize content creators and publishers using its STEEM tokens.
Introduced in March 2016, the startup was early on among the six largest cryptos operating in the blockchain space with around $157 million market cap. Based on CoinMarketCap, it presently ranks 48th among crypto coins, with approximately $106 million market capitalization.
The Steemit CEO described “the financial course for [the company] being very much altered,” but noted that the company will keep fighting through the bearish market trends.
“There’s nothing that I want more now than to survive, to keep steemit.com operating, and keep the mission alive, to make great communities,” he said.
Scott added that Steemit will prioritize short-term “cost reduction solutions” including some technical changes easing energy costs and storage.