The recognized cryptocurrency portfolio tracking app, Blockfolio, had to reduce its headcount and suspend its incubator project for three months. The decision was taken three months after a Series A cash-raise.
The information was confirmed by the CEO of Blockfolio, Edward Moncado. According to him, the number of employees working at the startup decreased from 41 to 37 and DataBlock, an affiliated company with Blockfolio, terminated contracts with other five people.
Apparently, there were several expenses that had to be paid, including the salary of a former Wall Street executive and other expensive investments. At the same time, the restructuring of the company has also taken place due to the bear market that has affected the whole industry.
There were also some issues that raised concerns about how the funds were spent by the company. According to The Block, there were ‘extravagant’ expenses. This is the case of catered-lunches and a party at the Shangri-La Hotel. Another seven-person trip to Prague when Blockfolio 2.0 was launched and other issues as well.
One of the sources contacted by The Block said that they did not need 40 people at Blockfolio. The source commented that Delta.app, one of the competitors had a dozen people working on the platform rather than more than 40.
Moncado explained that they have also taken proactive steps to ensure that they would make it through. In addition to it, they have eliminated significant marketing costs for the year ahead and had always paid market-rate salaries.
At the moment, the company seems to have a well-developed product but it lacks revenue and a plan for the future. There is no clear explanation about how they expect to earn funds in the future. Apparently, the company is going to be adding some ads to its application.
“Signal has been a tremendous success. It’s been enthusiastically embraced by all the token team projects. It was the first of its kind. Now you’re starting to see some copycats, but it validates the product.”