Shock as Giant Huobi And Bitmain Slow Down Activities Till Next Year

You won’t believe this but Huobi and Bitmain; specializing in exchanging cryptocurrency and mining respectively, have both announced that they will lay down their operations till next year. For different reasons, both of them seek to reorganize themselves to get the best resources that will see them achieve their set missions and objectives in 2019.

“We want to focus on our core mission and get things done most appropriately as we head to 2019. Also, we seek to hire the best talents (despite the background) to get us where we want to be,” Says Bitmain Technology.

With the current news circulating in China, rumors have it that almost half of Bitmain’s employees might lose their jobs once the layoff is complete.

To suppress these claims, Bitmains spokesman came out and denied all these accusations. He mentioned that the sacking process would be ongoing, but he refused to touch on the specific number of employees that might be axed or retained.

Unlike Bitmain, Giant Huobi affirmed that it will still be in the quest to get more experienced personnel after cutting off the redundant ones. This is a positive move that they claimed would be able to sustain their business needs and that of the emerging markets.

Core Reasons Behind the Wide layoffs in the Blockchain World

Recently, the markets have been crashing massively, and many Blockchain companies have been experiencing difficulties to meet and sustain their operating costs. This has seen these firms experience several cutbacks and layoffs to stay in operation.

Renowned studios like ConsenSys have been forced to undergo the restructuring process and axe off close to 60% of its workforce which is so unfortunate. That has just been a reflex action to get the business back on its feet amidst the bearish market that has been creeping fast.

“Currently, we’re in a competitive world, and we must learn to keep or even regain our previous mindset that makes up our company whatsoever,” Joseph Lubin (CEO ConsenSys) wrote to his personnel.

Steemit, another Blockchain platform was also a victim. Its CEO, Ned Scott, stated that it would retain close to 30% of its total employees only. His reasons were clear, and he mentioned that the cost of maintaining full steem nodes was becoming a burden given that they were yielding extremely low returns.

Information contained in this Guest Post is solely of the author and not of Today’s Gazette.