Ethereum startup Status.IM cuts 25% of its employees Ethereum-browser startup Status.IM is cutting a quarter of its employees amid a lingering decline in the crypto market, writes CoinDesk.

Ethereum startup Status.IM cuts 25% of employees

The Ethereum browser startup Status.IM is cutting a quarter of its employees amid a lingering decline in the crypto market, CoinDesk writes.

As its co-founder Jarrad Hope explained, the size of the company turned out to be much larger than its capabilities, since it was not ready for the drop in the ether rate by 80%..

Status.IM raised 182,000 ETH on a token sale last year, which at that time was estimated at $ 64 million and at $ 15.5 million now. Explaining the current situation, the organizers noted that they did not have «reliable banking partners» until the second quarter of this year.

 

 

 

Thus, Status will get rid of approximately 25 employees who are considered «uncritical» to achieve his long-term goals.

The company intends to stretch its fiat reserves for 6 months in order to be able to cover current costs. In this regard, Status asks its employees to agree to a salary cut, «which will be adjusted along with the market recovery». Subsequently, employees will receive compensation in SNT tokens.

 

 

 

«The reality is that we will have to do another revaluation at the end of the second quarter if the market has not recovered by then. Then we will make our organization even more modest, and the remaining fiat and large reserves in ETH will be used to create a reserve for several years.», - Hope reported.

The main priorities of the startup for the next few months are to achieve the goals stated in the white paper, and «bringing the application to a state in which it will be usable».

 

 

«A large and stable development team remains with us», - said Status COO Nabil Naghdi, adding that they have not stopped working on Ethereum 2.0 software implementations called Nimbus.

 

 

 

According to him, in addition to fiat reserves, the startup has about 190,000 ETH. Currently Status has no plans to raise additional funding.

 

 

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