ConsenSys, the Ethereum-focused software company best known for its flagship MetaMask wallet, is the latest crypto company to take a pay cut. On Wednesday, founder Joseph Lubin published a blog post announcing 97 layoffs—11% of the company’s staff.
In an interview with fortune, Lubin said the cuts are not targeting product staff, but rather those working to support functions whose workloads have been reduced during the industry downturn. (Coindesk reported rumors of layoffs last week.)
Lubin declined to disclose details of ConsenSys’ financials other than to say that, like the rest of the industry, revenue has been declining. But he said the company’s balance sheet was “very solid,” and attributed the cuts to a temporary need in response to “a dire macroeconomic situation.”
In addition to macroeconomic factors such as inflation and supply chain problems, Lubin said that the struggle of the crypto industry is the result of the end of the hype cycle and, in particular, the so-called “CeFi” (centralized financial) companies that cover themselves. crypto mantle but lacks the decentralized ethos and operations of what Lubin and others consider to be true crypto.
According to Lubin, some of these companies — including entities like Voyager and Celsius that have gone bankrupt — pursue profits recklessly, often burning clients in the process.
“The decline would have happened without CeFi’s fraud, but it was made worse by CeFi. Whether they intentionally exploited customers or just did something stupid, it’s hard to tell,” said Lubin.
In the coming months, Lubin said ConsenSys—which began as a Brooklyn incubator supporting dozens of Ethereum startups—will further sharpen its focus on building the most promising elements of its business.
This includes MetaMask, which has more than 30 million users, and recently added the ability for users to mine tokens—the crypto version of depositing funds to earn interest—and access other third-party services. ConsenSys will also continue to build another flagship product, Infura, which provides crypto infrastructure services to companies in sectors such as technology and banking.
Lubin said that ConsenSys will also focus on two newer services: decentralized identity and support services for Web3 trading elements that include NFTs.
“What lies ahead is huge potential for Web3, a multi-year journey ahead,” Lubin said in a blog post.
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