The past month hasn’t been good for Ethereum and it’s co-founders’ company Consensys. With Ethereum going below $90 support line, and mainstream media attacking Consensys on all fronts, Consensyss’ image has already been tarnished.
ConsenSys Labs incubates around 36 startups that usually have anywhere between 5 and 50 employees. Around 50% – 60% of the workforce involved with these startups will be let go by ConsenSys.
One source said that ConsenSys is presenting some of its spokes with an option to discontinue work with a severance package or seek outside investment. The company has declined to answer questions about how the spokes will be jettisoned, but following the publication of this article provided the following statement:
“As part of the evaluation promised with our transition to ConsenSys 2.0, our Labs team is engaging in ongoing conversations with every project, and in some instances, has provided options for them to determine their path forward. Next steps differ, with spokes having autonomy to decide about their own staffing.”
It’s perhaps the most dramatic development at ConsenSys since founder Joe Lubin first announced his updated vision for the company late last month.
But Consensys’s founder, Joseph Lubin, finally breaks down the silence regarding negative news around Consensys. According to him, most of the news around Consensys is mass hysteria, rather than backed by numbers. Joesph Lubin tweeted,
“We have been on the receiving end of an epic amount of conjecture and preemptive paranoia — filled with damning rhetoric about situations journalists and bloggers don’t have real data for, actual insight into, or understanding of.”
Ethereum creator Vitalik Buterin, himself took to Twitter to defend Consensys, saying the downsizing is part of the journey.
“Expand up to 1100 people, shrink to 600, keeping the 6/11ths that are most productive: OMG consensys is dead! Expand up to 600 with no shrinking, announce every step of the expansion: wow, the company is prospering!”
Tron Continues to Move at An Amazing Speed
The Tron project has continued to break records every day. Further checking DApp Radar, it can be seen that the Tron network now has a total of 39 active Decentralized Applications.
With respect to individual accounts on the network, Tron is a few thousands shy of the 1 Million mark. There are currently 969,470 accounts on the network according to Tron Scan and at the moment of writing this. The network has also achieved 3.327 Million transactions in the last 24 hours.
Interestingly, earlier in the month, Justin Sun announced the creation of a ‘rescue fund’ for the developers of Ethereum [ETH] and Ethereum Classic [ETC], if they migrate to the TRON network. This announcement came weeks after the closure of ETCDEV, an Ethereum Classic development team that shut-up-shop due to financial difficulties caused by the bearish market.
Everyone in @ConsenSys and @ethereum please send your resume to firstname.lastname@example.org and embrace your new opportunity! You are mostly welcome to join our fast-growing and well-funded #TRON family. #TRX $TRX #ETH https://t.co/kzwFpyO31w
— Justin Sun (@justinsuntron) December 22, 2018
Furthermore, Tomasz Zdybał, a former developer at ETCDEV took Justin Sun’s offer and joined the TRON network as a ‘core developer,’ the same was confirmed by Sun.
One of the main reasons for this competition with Ethereum is the Decentralised Application (DApp) on their respective servers. In mid-November, TRON surpassed Ethereum’s DApp volume for the first time. To further push the DApp volume on the TRON platform, the foundation introduced the TRON Accelerator, a $1 million competition that would empower developers to build their DApp on TRON.
While prospects seem dismal for the Ethereum-friendly group, it was explained that some of Consensys’ spokes will likely remain fully intact, contrary to rumors. Per those familiar with the matter, “core Ethereum tools” will continue to operate in their current state. Such tools include Infura, MetaMask (the popular Ethereum wallet and dApp client), Alethio, Kaleido, and Truffle. For a majority of the other spokes, ConsenSys will be starting an “accelerate spin out” process, whereas two months of severance will be forked out, or partial equity, partial cash deal will be struck.
These days, the mood at ConsenSys is bleak; it’s clear the freewheeling days of expensing $14,000 in two weeks or buying day-of Emirates business-class tickets are over, says a source. And according to an email sent by Frithjof Weinert, who works in finance at ConsenSys, the company is “looking to reduce spending that isn’t absolutely necessary for business success,” starting with travel and events; some hiring has also been put on hold.
“The office is empty, people are only finding out who’s getting fired because you try to to send Slack messages and they’re not there. ConsenSys won’t create a list [of the projects that are being spun out] or send out anything in writing because they’re afraid of everything going to the press.”
The source added that, earlier that day, all the spoke leads had a meeting with Cheng and Ron Garrett, who also runs ConsenSys Labs; when asked, they didn’t agree to create or provide a list of spokes or what would be happening to them.