Status, the Ethereum (ETH) based chat platform is planning to lay off 25% of its workforce because of the current downturn in the cryptocurrency market.
Status is an open source, ETH based mobile app which was founded in 2017 in Switzerland. The app enables users to chat, transact, and access the revolutionary world of dApps from Android devices. Currently, the app is under beta testing. Some of the Beta features of the app are light client, encrypted messaging, seamlessly browse dApps, Ether Wallet, etc. The main aim of creating Status app is to facilitate the transactions to a more open internet and financial system through new paradigm Ethereum represent. The app is looking forward to building a community where anyone can join and contribute to the causes.
In a recent announcement, the co-founder of Status app, Jarrad Hope said that the app is much larger than we can sustain in the declining crypto market. The company was not prepared for the conditions where the price of Ethereum dropped over 80% since last four months. He further added
“This was compounded by not having solid banking partners due to the difficulty in opening banking accounts for crypto projects until Q2 of this year, and have been hedging since then accordingly.”
On the laid off, the company said that 25% of its staff is non-essential for the long-term growth projects of the company. Remaining staff is also advised to take a pay cut which will be given as a sum of native virtual currency SNT of Status to offset their cut and align with the success of the network. Currently, SNT is trading at $0.0134, and it is the 67th largest coin by market cap. The market cap of SNT is around $47 million, and total supply is over 6.8 billion. The company has also asked the employees to actively contribute to the development of its two priority projects.
Because of the cryptocurrency market decline, some other companies also laid off their employees. Steemit recently laid off over 70% of its employees and began a structural reorganization.