ConsenSys Layoffs Mark Freezing Point in Crypto Winter
The Ethereum production startup announced a 13% reduction in its staff just as the ETH market price veered below $100.
ConsenSys, one of the biggest Ethereum (ETH) developer hubs, has felt the effects of the bear market, recently letting go of up to 13% of its staff. Only a day after the publication of a Forbes profile of the Ethereum hub, CEO Joe Lubin sent out an email to employees to announce the reduction of “mesh members.” The layoffs have affected some of the supporting teams that work along with the “spokes,” or semi-independent startups within the Ethereum ecosystem.
Through its expansion into spokes, ConsenSys managed to create the base layer products for communicating with the Ethereum network, including MetaMask and Infura - the most popular ways for users and developers to connect to the network. The series of layoffs arrives at a time when the dependence of Ethereum’s ecosystem on ConsenSys products is seen as a potential point of failure and a form of centralization.
The silver lining is that even after the changes, ConsenSys will continue working as a startup. The company has been around for years, since the time ETH prices started climbing from $1, and managed to grow its team to 1,200 developers and experts.
Social media comments see the downsizing not as a fatal flaw but as shedding the less profitable “spokes” to streamline other products. In any case, the spotlight on ConsenSys added to the negativity surrounding the Ethereum ecosystem.
Despite the layoffs, Lubin and the ConsenSys team recently posted an encouraging list of blockchain developments, which show that the Ethereum network has managed to build real-world applications.
Despite the low ETH price and its potentially fatal impact on the project, there are indicators that the network is now large enough and will not be easily abandoned. Ethereum-based projects still manage to attract developers, and there remains the general drive to create the Web 3.0 infrastructure by using a new set of technologies and decentralized computing.