Crypto Startups Go Belly-Up
I'm still learning the lingo of markets and finance so I don't know if there is a better word to characterize the current state of the cryptocurrency market ("bear" just doesn't feel strong enough). However, the current bear market has been absolutely brutal. Brutal. So it's not surprising that many of these startups that were able to raise significant funds during last year's bull run are now downsizing or closing up shop altogether.
According to Bloomberg, it's not only the smaller cap companies that are being significantly impacted by the drying well. ETCDEV, the group behind Ethereum Classic (with a market capitalization of over $400 million), is shuttering its operations this week. The software development company ConsenSys and the content publishing company Steemit, both high-profile names in the crypto/blockchain space, are making significant cuts to their workforces. And they're not alone. SpankChain (use your imagination), Sirin Labs (mobile phone facilitating use of crypto), Coinfloor (a UK-based exchange), Kraken (a U.S. Bitcoin exchange) and GigaWatt (hosting services for miners) are all downsizing, re-strategizing or have already filed for bankruptcy.
Most "experts" saw the crypto winter coming. But no one knows how long it will last. There are too many players in the game and there simply isn't enough space or money (mainly money) for everyone. It'll be interesting to see which companies survive. Stay tuned!