Losing Steem: One of the Most Active Crypto Projects Cuts Staff

Steemit, the social media platform built around the STEEM digital asset, is reorganizing its structure and downsizing 70% of its workers.

Steemit, a social media platform built on top of a distributed ledger, has encountered trouble exacerbated by the drop in market prices. In a Steemit community announcement, Ned Scott, the CEO and co-founder, outlined its challenges and plans.

“Given the weakness of the cryptocurrency market, the fiat returns on our automated selling of STEEM diminishing, and the growing costs of running full Steem nodes, we have been forced to layoff close to 70% of the team,” wrote Scott.

However, the network was criticized for allowing bots and organized voting to game the rewards system. In the summer of 2018, users also noticed the founders’ wallets being emptied of STEEM, suggesting a liquidation of funds.

The STEEM market price suffered heavy losses in the past month, dragged down from around $0.83 down to $0.35. In the past month, Steem Dollars (SBD) also sank, from around $0.97 to $0.80. The initial idea for SBD was to be pegged to the dollar, but for a while, the Steemit platform abandoned the task of keeping the dollar peg by printing or burning tokens.

In the past years, STEEM was at one point seen as a “Bitcoin killer”. However, skeptics are extending the trouble of the Steemit platform to EOS, another Dan Larimer project: https://twitter.com/WhalePanda/status/1067730784058957825

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