Steemit, a decentralized sharing platform has laid off 70% of its staff, due to “the weakness of the cryptocurrency market”, and is all set to start a structural reorganization.
In a video shared on YouTube this Thursday, Ned Scott, CEO and founder of Steemit said:
“While we were building up our team over the last months, we had been relying on projections of basically a higher bottom for the market… Since that’s no longer there, we’ve been forced to lay off more than 70% of our organization.”
He further explained that as Steemit’s top brass met, it became necessary as a private organization to restructure the staff. However, he did not specify the number of employees the organization had before the layoff and more details were not returned by press time.
Talking about the layoff, Ned Scott explained that the impact of low prices for cryptocurrencies such as bitcoin, it has only exacerbated Steemit’s platform and it no longer covers the “growing costs of running full Steem nodes.”
Steemit runs on a decentralized application, Steem Blockchain. The system is built on community-driven evaluation, posting and executing content. Steemit is a social media platform that rewards participants and content creators with tokens called ‘STEEM’.
After the layoffs, Scott plans on resolving the issue “replacing steemd plugins with hivemind, pitchforking Steem to prune the chain state size from 160gb to 0gb, AWS usage projections, DevOps solutions, reduction of Staging and Testing nodes, and eliminating redundancies.”
Since Steemit’s launch, the company has increased more than 2000 percent to reach over the mark of $400 million in market cap, just within two weeks. During this time, the prices surged from $0.24 to $4.63.
Steemit was launched in 2016, which back then was one of the six largest cryptocurrencies operating in the blockchain space with a market capitalization of $157 million.
According to CoinMarketCap, Steemit is ranked 48th among the cryptocurrencies, with a market cap of around $106 million.