The ongoing cryptocurrency market pressure causes many side effects. For Ethereum co-founder Joseph Lubin, tough decisions have to be made. His company, ConsenSys, will undergo a restructuring in the near future. This change will help the firm avoid unnecessary friction from this extended bear market.
ConsenSys Feels the Market Pressure
Every company involved in cryptocurrency suffers from this extended market pressure. Whether it is restructuring, laying off staff, or reducing overall financial risk, tough calls are being made across the board. ConsenSys, one of the bigger “bastions” in the Ethereum landscape, is no different. Chief executive Joseph Lubin confirms this troublesome trend enforces some major changes. The company will get its own restructuring soon. Recent drops in Bitcoin’s and Etheruem’s price highlight the current model is no longer sustainable.
Turning the negative into a positive is a key priority for Lubin. Rather than outlining the bad, he heralds this change as the era of ConsenSys 2.0. The focus will shift toward accountability, revenue, and efficiency. All underperforming projects will be cut off completely. Additionally, the VC arm of the company will act as a startup accelerator for the foreseeable future. All of these changes make sense from a business perspective. For now, it seems no employees will be let go just yet.
It is not uncommon for companies to grow and evolve over time. Rather than exploring a broad vision, narrowing down the efforts can offer a proverbial fresh wind. Streamlining the efforts will be beneficial to ConsenSys and its clients alike. Ethereum has also matured, thus it’s only normal the “kiddy gloves” come off. A more aggressive approach to milestones and timetables may not be an unnecessary luxury for the future.
Trying to Remain Positive is Key
Any industry goes through good and bad years. For cryptocurrency, this is the second “major” bear trend in ten years. As such, it seems a lot of companies and traders will be shaken out accordingly. That will allow for new faces to emerge across the Bitcoin and altcoin industry. This trend, while negative, doesn’t have to remain a negative per se. A lot of good things can come from these developments, at least when looking at the bigger picture.
Low prices cause many problems not witnesses in the industry for years. Miners are shutting down their operations because it’s no longer profitable. That can, in turn, weaken cryptocurrency networks in the process. Bitcoin’s hashrate has already seen a big drop off in recent weeks. Ethereum is going through a similar phase. Its network hashrate is in a freefall since the past week.
At the same time, new initiatives are being launched. New mining operations are being set up in preparation for the future. Interest in Bitcoin and altcoins remains virtually the same as it has been for several months. No one knows what will happen in the coming weeks and months. All markets may see more pressure or a massive turnaround. For now, service providers need to try to toughen it out. ConsenSys is doing exactly that, and in a rather positive manner to boot.
What do you think about ConsenSys’ latest move? Will other companies follow suit? Let us know in the comments below.
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