New Crypto Rumor Hints at Bitmain Bitcoin Mining Firm is Getting Rid of Over 50% of its Workforce?
If well-respected crypto analyst Dovey Wan is to be believed, Beijing based mining firm Bitmain is all set to lay off a majority its employees starting next week.
Citing personal sources, Wan recently stated that he believes Bitcoin could be getting rid of nearly 50% of its staffers. This is grim news for the crypto sector as a whole since statistical data seems to indicate that the firm currently has around 2,000 full-time employees on its payroll.
Not only that, according to Wan, just the presence of these rumours is already having a major “negative impact on the Chinese crypto market” — with Wan going as far as saying that this purge could turn “the cryptocurrency mining scene on its head.”
What’s Really Happening?
All of the aforementioned rumours have come straight after it was reported recently that Bitmain had closed its Israeli blockchain development center last month— an initiative that was founded a couple of years back (in 2016) and housed around 25 full time employees.
In response to the matter, Gadi Glikberg, the former head of the center, was quoted as saying:
“The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
More On The Matter
One of the main reasons for the propagation of the above stated rumours could be Bitmain’s precarious financial situation— which has been severely aggravated all through 2018 due to the current economic conditions that have plagued the crypto market at large.
In addition to all of this, the fact that Bitmain is in possession of a sizeable amount of Bitcoin Cash (BCH) could also be a catalyzing factor for these rumours— especially since the currency has been on a downward spiral since its recent hard-fork.
Many Other Companies Too Have Been Affected By The Recent Bear Market
While Bitmain is certainly one of the biggest casualties of the recent bear market, it has just come to the forefront that other startup firms such as Status too are in the process of cutting “25% of their current workforce”.
In a recent interview with Status co-founder Jarrad Hope, he said that over the course of the past 6-8 months, his company’s reserves had been “drastically reduced” (and thus it was only a matter of time till the firm took such a drastic step to eliminate its “non-essential” staffers).
Similarly, decentralized media platform ‘Steemit’ announced that it was undergoing a massive business shift (with the firm close to eliminating 70% of its core team in the near future). Lastly, even Ethereum development studio ConsenSys recently got rid of 13% of its staff after it was found that the companys profit figures had continued to dwindle all through 2018.
In closing, it is worth noting that recently a famous Ethereum Classic dev consortium by the name of ETCDEV folded its operations after the firm’s CTO announced that the company could no longer keep up with the bear market conditions.