The prolonged downturn in the crypto market is likely to see several crypto-related businesses struggle, with some forced to shut down their operations.
ETCDEV, a leading Ethereum Classic (ETC) development team created in 2016, is the latest victim of the market crash.
In a tweet posted on Monday, the Ethereum Classic team announced that the ETCDEV was shutting down, citing current market situation and financial struggles.
The tweet read:
“Unfortunately ETCDV cannot continue to work in the current situation and has to announce the shutdown of our current activities.”
According to Igor Artamonov, the ETCDEV founder and CTO, shutting down of their operations was primarily due to a lack of funds. He said that the team had struggled to fund their operations, a fact he attributed to the “market crash, combined with a cash crunch in the company.”
Artamonov also noted that they had instituted several attempts aimed at finding alternative sources of funds, but all that had proved futile.
Interestingly, the decision to close shop comes only days after the software developer expressed fear that many startups were stumbling, referring to it as “really tough times.”
In a November 27 post on Medium, Artamonov wrote that the markets were crashing and that several startups were beginning to run out of money. He had added at the time:
“That’s a big problem for most of the companies in our space, and that includes ETCDEV, of course.”
Ethereum Classic urges calm
Hours after the ETCDEV team announced that they would be shutting down due to the cash crunch, Ethereum Classic tweeted to its community emphasizing that Ethereum Classic wasn’t just about ETCDEV.
Instead, the tweet noted, ETC blockchain is about a large group of developers- and “a litany of volunteers,”- including IOHK, ETC Co-op, ETC Labs. Tweeting from the network’s official Twitter account, the ETC team extorted the community to “keep calm, and build on.”
Ethereum Classic, like Bitcoin (BTC) and other digital currencies, has seen its price crash to new lows amid a massive market sell-off.
The situation was exacerbated by the acrimonious Bitcoin Cash hard fork that has seen UnitedCorp, a Florida based firm, file a lawsuit against Bitcoin Cash heavyweights like Bitmain, the mining giant’s CEO Juhan Wu, and Roger Ver.
The meltdown has seen companies look to restructure or reorganize their operations in a bid to stay in business.
Last week, Steemit, a blockchain-based social media platform, announced it would be downsizing its staff by about 70 percent. The company’s CEO Ned Scott put it down to the abysmal market performance in the last few months, a complete opposite of their previous bullish projections.
Earlier this week, ConsenSys, an Ethereum development platform, announced that it would be restructuring with the launch of ConsenSys 2.0, a move that should see it streamline operations and regain its competitive edge.
Joseph Lubin, who is also an Ethereum co-founder, penned a company-wide letter in which he told the employees, that the company could be forced to lay off staff and purge underperforming projects among other measures to “regain, the lean and gritty startup mindset” that saw it grow into such a successful platform.
But despite the crypto bloodbath, some note that a lot is going on behind the scenes to suggest the market would soon take a turn for the better.
According to Barry Silbert, the upheavals in the market are but the growing pains necessary for the industry to grow.
The Digital Currency Group founder noted that ‘game-changing’ developments were taking place, including the building of necessary infrastructure needed for the on-boarding institutional investors.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.