In a blog post dated 10 January, ShapeShift CEO Erik Vorhees admitted the layoff of 37 employees that left a void of almost a third of its workforce.
This stance is quite prevalent, considering the bear situation that plagued 2018 and the suffering it caused to many crypto firms. Many enterprises struggled to record growth and juggled between reorg and layoffs.
Vorhees wrote in the blog –
“Crypto, like the moon we strive toward, is a harsh mistress. We ride high and fast during the ascents, growing at rates unseen almost anywhere else in the business world (ShapeShift grew 3,000% in 2017). And when the markets turn, the crypto recession is similarly dramatic and severe.”
Vorhees wanted to highlight the vicissitudes of the digital coin market. In a matter of just a year, a company riding on the highest rung of prosperity, suddenly resorted to cutting corners.
Vorhees went on to substantiate and identify the root cause of the problem. He said that ShapeShift expanded its wings into too many verticals resulting in time, legal and financial liabilities.
In particular, the blog explained the ventures of CoinCap, KeepKey and comprehensive solutions for Ethereum (ETH) caused digression. This spanned their attention into too many projects, thus entailing financial resources and subsequent legal reviews.
Vorhees attempted to ascertain the cause of the layoffs terming it as ShapeShift’s ‘greatest and worst’ financial decision. Due to the immense volatile conditions, the company was consuming through the capital at a rapid pace.
After expressing much regret of having to separate from so many of the team members, Vorhees extended consolation by being empathetic towards their sadness and confusion. He recognized the contribution of the parted colleagues towards their effort and personality, hoping they too were benefited from their association with ShapeShift.
Vorhees in his take to conclude the blog, headlined the productivity gain that cryptocurrencies are bringing on a global scale. Irrespective of race, gender, nationality, religion, geography, ideology or socio-economic status; cryptocurrencies are bridging the gap towards decentralization.
Vorhees being very transparent stressed that ShapeShift would not make blind and high promises. Instead, the company will focus on making digital assets used widely and sovereign.
There is no doubt that cryptocurrencies are a pillar of strength in the current century. Whether it remains so, all depends on enterprising ventures by companies like ShapeShift that are looking to bring a paradigm shift by introducing a cashless society.