Blockchain-Based Social Media Steemit Fires 70% Of Team
Steemit, a blockchain-based platform for social networking, dismissed more than half of its staff because of the crypto market crash. The work of the social media is based on the internal token Steem, which has lost in price and reduced fiat revenues from sales, according to the startup CEO Ned Scott.
In his video blog, Scott explained that the company had to lay off 70% of its employees and start a structural reorganization. In addition, due to the decline in the cryptocurrency market, the cost of running the network’s nodes also rose. The team is looking for more cost-effective solutions to support the platform, Scott added.
The Steem token lost more than half of its cost, dropping from $0.8 to $0.3 in mid-November 2018. This coincided with the rapid correction of bitcoin, which fell below the annual lowest mark of $3600 on November 25.
Steemit is designed as a decentralized platform for social publications. Users receive coins for creating and evaluating content, and administering blog posts. The Steemit team pursues a so-called “attention economy” and motivates the community to compete for limited resources — Steem tokens.
After the token was launched in 2016, its price increased by 2000% in just two weeks, reaching $4.63. The Steem coin experienced uptrend along with bitcoin and a number of other cryptocurrencies and was traded at $7.20 in January 2018.
Over the last week of November, the token rate has adjusted and now remains near $0.38, CoinMarketCap data shows.
As previously reported, the Aphelion platform built on the NEO blockchain decided to stop trading.