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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.


According to a recent post by Ned Scott, the founder and CEO of Steemit, the company has been forced to consolidate operations and restructure its infrastructure in order to stay afloat.

Scott points to the weakness of the cryptocurrency market, the diminishing fiat returns on their automated selling of STEEM, and the growing costs of running a full Steem node as the major factors prompting this corporate consolidation.

“The remainder of the team is staying on to focus primarily on reducing the costs of the infrastructure running steemit.com and our public APIs, and ensuring that the community can remain informed of developments,” Scott said.

Scott reveals that he has no intention to abandon the cryptocurrency market, and plans to prioritize cost reduction solutions in the near term, including pitchforking Steem to prune the chain state size from 160gb to 0gb.

This news comes roughly 7 months after Steemit revealed that its blockchain had recently surpassed one million registered accounts. Steemit.com had around 250,000 unique daily visitors at that time. Ultimately, many on social media are calling out Steemit for treasury mismanagement given its large pre-mine and scheduled automated STEEM selling.

STEEM is currently up 13.2% on the day to $0.357 despite the bad news, giving the 48th largest cryptocurrency a still-respectable market cap of $107.3 million that seems to raise further questions about how a social network with under 300k DAUs could burn through tens of millions of dollars so rapidly.

More: Steemit Update
Similar: Steem Blockchain Announces Release Dates for Its Smart Media Tokens

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.