One of the most premier publications in the world of cryptocurrencies is targeting ConsenSys for its mass layoffs. The publication is run by Roger Ver.
It seems as if cryptocurrency market was waiting for ConsenSys to announce mass layoffs in order to start rebounding! On one hand Joe Lubin headed startup announced plans of 60% layoffs, and on other hand crypto market started to rebound. Had it happened a bit earlier, perhaps things would have been different and Lubin wouldn’t have made up his mind to fire so many people. But now when layoffs have been announced, ConsenSys is on the target of its critics. And the first major critics are, of course, their competitors. Bitcoin dot com, which is the publication run by Roger Ver, has recently published an article criticizing ConsenSys for its attitude towards the business.
The article starts by claiming in the headline itself that company’s “wild ideas” and “squandered funds” have led to the mass layoffs. Then it goes on to say on the information provided by ‘one source’ that careless planning, overzealousness, and mismanagement were the driving forces behind this situation besides the fall of crypto market. A paragraph of the article reads:
“According to one source, for all the money Consensys raised, its lack of marketable products, overly ambitious ideas, and attempt to sell technologies that were not yet fully realized may all have hastened its downfall.”
The summary of the article also said that ConsenSys may have to make further cuts in order to keep operating. Another source that article cites is not anonymous, however. He is Stefan Neagu, the co-founder of Persona. He has also opined that the money of ConsenSys was being spent with reckless abandon. He said:
“In my opinion, we reached this moment when projects are shutting down because of a combination of lack of skills or inexperienced management and a lot of overspending. There were projects funded that were decentralizing everything, from bananas to sending the North Korean President into space. I think that this purge period is similar to the dotcom crisis, and only those projects that have a real value proposition and represent ‘a win for the masses’ will succeed to survive.”
Interestingly, ConsenSys had a workforce of 1,200 until now. That was the largest workforce in the world of crypto, and it will still remain so even after the mass layoffs… but the things will certainly not look the same and new employees will be hesitant to join ConsenSys in the near future at least.