Crypto-powered Adult Entertainment Project SpankChain Reduces Team to Only 8 Employees
SpankChain seems to be having some issues with the funds it gathered from investors. According to Ameen Soleimani, CEO of SpankChain, informed in Reddit that they reduced the number of employees working at SpankChain. The decision was taken in order to avoid selling more funds for developing the crypto-powered adult entertainment platform.
Ameen Soleimani wrote on Twitter that the team has been reduced to 8 individuals that will be working on product development and sales. Soleimani explains that due to the current situation in the crypto market, they have been severely affected by the price drop.
The company was able to raise $6.5 million when ETH was close to $317 and they kept them all until now, with ETH being traded close to $120. That means that the team has now close to $2.45 million left.
Soleimani says that with the team reduction their spending will not be $80k per month rather than $200k. This would allow them to run for two years in case virtual currencies go down to zero. If the market stays close to the current situation, the team will be able to work for three days.
On Reddit, Soleimani wrote:
“All things considered, I think we did decently well with treasury management, but by no means are we professional traders. We raised at $6.5M when ETH was at $317. Had we held all of it until right now (~$120), we’d have ~$2.45M left. So even with the 1 year of development we funded, we still came out ahead.”
During the previous six months, the team was made up of 12 individuals.
The cryptocurrency market has been operating in a bear market that harmed the whole crypto industry in many different ways. The situation that SpankChain is experiencing is similar to the one that many other Initial Coin Offerings (ICOs) are currently living.
Ethereum has lost more than 90% of its value since it reached an all-time high back in January 2018. Several ICOs received millions or thousands of dollars at the end of 2017 and the beginning of 2018. Since that moment, they might have lost 90% of the value of their assets. And this can be seen in several projects in the market.
ICOs were also selling part of their funds in order to avoid further losses as the market was going down. This increased the selling pressure experienced by Ethereum, losing the second position in the market, which XRP was able to acquire.
At the time of writing, ETH is being traded around $118 dollars and it has a market cap of $12.27 billion. SpankChain (SPANK) has a market capitalization of $6 million dollars and each coin can be bought for $0.02 dollars.