According to the transcript from a recent town hall, Status has been “forced” to adapt to current market conditions, and as such, is reducing its staff and asking existing employees to take pay cuts.
“Recently, as you may have seen, the market has undergone a crash or a significant price correction. As a result, ETH is one third of the price we raised and planned for, and we don’t know how long this storm will last,” co-founder Jarrad Hope said.
The company originally raised 182,000 ETH in a 2017 token sale, which was worth $64 million at the time but would now be worth $15.3 million before taking project spending into account. While this is still a significant amount of capital for any startup, the project notes it wants enough runway to deliver on its whitepaper promises and bring its app to the point of widespread use.
This news comes as other major Ethereum-based projects have begun to cut staff.
Last month, Steemit, Inc., the company behind the open-source steemit.com, a decentralized app on the Steem blockchain, has laid off 70% of its staff amid the ongoing crypto bear market. More recently, Ethereum development studio ConsenSys has reportedly let go of 13% of its 1,200-person staff.
SNT is down 4.9% over the last 24 hours to $0.013545, giving the altcoin a $47 million market cap and making it the 65th largest cryptocurrency at present.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.