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Octopus, a multi-channel cryptonet that supports Web3 applications, will lay off 40 per cent of its employees to ensure its survival during the crypto winter.
Macroeconomic headwinds have hurt many other industry leaders who have taken similar steps in recent months. Certain examples include coinbase, cryptocom, huobi, bybit, bitmex, and others.
This Winter is Different Than the Others
In a recent letter, Louis Liu – Founder of Octopus Network – announced that they will refactor the team to cope with the unfavorable market conditions. He went on to say that the current bear market is somewhat different from its predecessors:
"This winter is my third winter, the first two being 2014-15 and 2018-19, and I see this winter is very different."
Liu thinks cryptography will be one of the hardest hit industries, where high risks and increased volatility will continue to prevail. He also believes that the majority of web3 startups will not support difficult times, anticipating that the negative trend will last at least one more year.
As such, the octopus network (which supports the development of web3 blockchain applications) has imposed its "voluntary separation program" and is going to reject 40% of its total staff. Additionally, the remaining 18 individuals will need to agree on a wage reduction:
We are therefore proceeding with the Voluntary Separation Program. To date, approximately 40% of members (12 out of 30) will be transitioning out of the core team as part of the program. The remaining team members will accept a 20% salary cut, and the team token incentive will be suspended indefinitely.”
Near Foundation is the “exclusive strategic investor” and “mother-chain” of Octopus Network. Liu stated that the partnership between the two entities remains solid, adding that close and ibc will become the "two cornerstones" of the new octopus strategy.
2022: Termination and bankruptcy year.
Many cryptocurrency companies have scaled back their divisions due to a slowing market and declining interest in digital assets.
The leading US-based exchange Coinbase laid off 18% of its employees in June, BlockchainCom dismissed 25%, while the NFT marketplace OpenSea parted with 20% of its employees.
Companies, including the Argentinian cryptocurrency platform Lemon Cash and the Aussie trading venue Swyftx, went even further, dismissing respectively 38% and 40% of their staff members.
In recent months, many companies have also been unable to cope with the turbulence and ultimately shut down their operations or seek bankruptcy protection. Such examples are the former giants Celsius Network, Three Arrows Capital (3AC), Vauld, Core Scientific, and others.
