Social networking platform Steemit is losing quite 70 % of its workers because of the cryptocurrency market crash, and is starting a structural reorganization, as per a Nov. 28 video post by Steemit chief executive officer Ned Scott.
Steemit runs a decentralized application on the Steem blockchain, whereas its system is constructed around community-driven posting, evaluation, and administering of content. Steemit rewards participants and content within the alleged “attention economy” with the native token STEEM.
Per the announcement, the recent fall of cryptocurrency markets has resulted in an exceedingly decrease in fiat currency returns from the company’s automated STEEM sales. in addition, the value of running Steem’s nodes has multiplied.
The cryptocurrency market experienced a huge decline on Nov. 14, with Bitcoin (BTC) dropping from its average trading worth of around $6,400 to as low as $5,506. Last week, its ruined even further, below $4,000. The dive has marked a brand new volatility record for markets this year.
Following the layoffs, Steemit is supposedly prioritizing price reduction methods like “replacing steemd plugins with hivemind, pitchforking Steem to prune the chain state size from 160gb to 0gb, DevOps solutions, reduction of Staging and Testing nodes, AWS usage projections,and eliminating redundancies.”
After its establishment, the STEEM token enjoyed nice success. In July 2016, it rose by over 2,000 % to achieve over $400 million in market cap within fortnight. At the same time, its worth additionally grew from $0.24 to $4.63.
As of press time, STEEM is trading around $0.382, up nearly 19 % on the day, as per TopMarketCap. The coin’s capitalisation is around $115 million, and its daily trading volume is over $1.8 million.
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