Crisis at Steemit Inc (STEEM) : 70% Employees laid off
Steemit Inc announced that 70% of their employees were laid-off due to the company restructuring. It is clear that there are major issues at
Reasons for the Lay-offs
- Market Collapse – Unfortunately, the price of STEEM dropped 97% (from $7.31 dollars in January 2018 to $0.24)
- Budget Shortcomings – Steemit Inc held substantial amounts of the cryptocurrency STEEM. As employees are paid out in fiat, this meant the company couldn’t cash out enough STEEM to pay for the employees
- Company direction – the company focused on two fronts – blockchain development AND website development.
Unfortunatelythey couldn’t master both.
Long Term problems
- The company is doing too much blockchain development – developing blockchain features (Database migration, Smart media tokens (ie ICOs on Steem)), Developing DAPP (steemit.com),
- Costs of API maintenance – the company maintains APIs for free (Steem API) which is expensive
- Steemit.com is a full-blown social media project and is hard to maintain.
- they don’t have resources/management skills to manage both sides well
- Cut down the scope of new features (Steem Media Token ~ lite edition).
- Sunset on Steemit.com website / Dapp.
- Ned said the infrastructure of can never scale to compete vs Instagram
- “Destiny” a new app to solve core issues with steemit.com is now abandoned because of the lack of resources
- Goals to improve the adoption of blockchain – transfer of
value / storeof value
- encourage other applications on
that further censorship resistance steemit
- Increase usage of Steem as currency. how to grow the currency
Various competitors in the social media space have also sprung up this year. One of them is Mithril, an ethereum based social network which focuses on fair-reward for content creators. Other social media services such as
Steemit Inc had to make some tough decisions. After setting the core direction of blockchain development, everyone else was cut. Moreover