Home News Nebulas Blockchain Project Cuts 60% of Workforce

Nebulas Blockchain Project Cuts 60% of Workforce

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What’s The News?

As reported by CoinDesk, the Nebulas blockchain project has gone from a team of 80 people to just 30. Click To Tweet

What Does This Mean?

After getting attention in August last year for the company’s decision to delay its token distribution, including holding onto founder tokens for a decade, it should have been the first sign that something was amiss.

The reason that Nebulas is holding down a spot in the current news is due to regular layoffs. The company has deferred the roadmap until they can recover enough for the NAS token to be valuable enough.

Becky Lu, speaking for the project on the layoffs said, “One of the reason was the market price kept going down.”

The project’s token, NAS was originally launched into the market at $2 and was intended to be used for powering the Nebulas protocol and measure other blockchains. However, the CoinMarketCap shows that the company is now at less than 25% of that value. NAS once was a top-100 cryptocurrency by market capitalization, and now has taken a huge downfall from its earlier days.

Why Does It Matter?

The Bigger Market Picture: Considering the latest layoffs at ConsenSys, Bitmain, ShapeShift, BlockEx, and now Nebulas during the bear market, it is apparent that cryptocurrencies rise and fall has the power to hurt blockchain companies as well. Based on recent reports, Nebulas has already lost 50 of its 80-person staff.

Although, the company’s layoffs have recently caught the media attention, however, these retrenchment exercises started in the summer of 2018. The team that was hardest hit with these layoffs was located in Beijing.

Now the company wants to tighten the reins on its strategy. Explaining, Lu said,

“Another reason we decided to cut off the unimportant projects like third-party wallets [was that they are] not core to the main tech visions mentioned in the [Nebulas] white paper. So the dev team of that project was first impacted.”

The general problem in the cryptocurrency market is that it is usually independent of other industries.

Currently, it cannot be confirmed whether treasury management had been an issue with Nebulas. However, it’s a coincidence that the layoffs came about seven months after the team raised $60 million in its token sale is somewhat strange.

Despite these setbacks, Nebulas has continued to make progress by issuing various incentive programs for the community members and developers.

At the end of 2018, the company launched its NOVA testnet, which measures the quality of data on blockchains. More detail can be seen in CEO Hitters Xu’s 2018 year in review post on Medium.

Up to now, Lu believes that the company is sustainable for at least another two years, suggesting that the will have enough time to reach the milestones on its roadmap. She concluded,

“Now that the team has accomplished most of the tech development, the main job for this year is to build up the community government and consensus to achieve full decentralization.”

Are you a Nebulas blockchain employee? Got a news tip? Contact us anonymously at success@careertsunami.com

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