Dash Core Group plans to let go 8% of the​ir staff

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On March 7, 2019, Dash Core Group (DCG) plans to let go approximately 8% of their staff, says in their official announcement by the company’s CEO Ryan Taylor. They are about to remove their Human Resources team, remove 2 people from the Strategy team and one person from the Business Development team. 

What is Dash Core Group? Source: dash.org

Tough decisions to maintain financial stability

As Ryan Taylor writes in his announcement, Dash Core Group faced tough decisions to maintain the company’s financial stability. The main reason for this is the long-lasting “crypto-winter”, which affects the majority of crypto companies around the world. It looks like the last several months for Dash Core Group have been mostly about reducing their budget. Also, the company is in a “hiring freeze” mode for about 6 months now.

However, earlier in December they claimed that “DCG is not at risk of shutting down anytime soon, or of any significant cuts in staffing levels in the near term. We have a significant buffer in place to withstand the impact of the market bottom, whenever that comes.”

Altogether, Ryan describes that this six-month-long period resulted in “some natural turnover to have an effect on our expenses as well.”

Staff reduction is not related to the performance of Dash Core Group

The CEO explains that their primary focus remains on the development of the network. He also highlighted the rollout of the Evolution. In order to not disrupt the primary focus, they decided to reduce several business functions like:

-The elimination of Human Resources

-Laying off two people from the Strategy department

-Laying off one person from the Business Development department.

These reductions represent 8% of their staff.

Operational changes

However, this does not mean that HR department will no longer function within the company. That also applies to Strategy and Business departments.

Many HR related duties will be shifted to individual managers. Glenn Austin, the CFO (chief financial officer) will be the primary contact point for HR related topics.

“Strategy projects will transition to each of the functions with whom the strategy team had been supporting. Operations will assume maintenance responsibilities for the metrics and reporting tools that the strategy team recently created,” explains the annauncement.

However, Ryan himself will take a larger role in Business Development.

The announcement ends with a supportive message to the ones affected in the lay off: “We wish nothing but success for those impacted and I want to thank them personally for the lasting contributions and commitment they demonstrated to both DCG and the network.”

What is DASH?

Dash is one of the most well-known cryptocurrencies. The coin was first launched in 2014 under the brand name Xcoin. It was founded by Evan Duffield. The cryptocurrency currently is the 15th coin by total market cap. During the December bull run, it reached a total market cap of 3.4 billion USD. The price of 1 DASH currently is $83.31.

Dash price chart. Source: coinmarketcap.com

To read more about the unique features of DASH and its real-life implementation, read our explanatory article.



Photo by flickr.com

Bitmain again having lay-off issues

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Recently there have been numerous rumors saying that Bitmain is about to lay-off almost 50-85% of their staff, because of the crypto market downfall issues. Bitmain is a mining equipment company which has suffered a massive drop in the interest of their mining business as a whole. 

Rumors out of a Chinese LinkedIn with very “high accuracy”

All these rumors are backed by a mysterious Chinese-like LinkedIn called Maimai, where some of Bitmain’s employees have created a long thread about a significant layoff planned by Bitmain. In the thread, they were discussing the possible salaries and bonuses they would get. Some comments speculate on the number of job positions being let off, but all-in-all, it’s just a social media site.

These could be just pissed-off employees spreading lies about the company.

An official who wants to stay anonymous

Later, the South China Morning Post stated that both, Huobi and Bitmain, has confirmed the layoffs, but the Bitmain official wanted to stay anonymous because this news still hasn’t been revealed to the public. He denied that Bitmain was about to lay off 50% of their staff, but also didn’t specify anything in particular.

Bitmain closes Israel development arm

Earlier this month, Bitmain laid off all their 23 employees in their Israel department. This department was mainly for research purposes. Only a few months earlier, they were about to hire 40 new researchers. The branch leader, vice president of Bitmain, who also got laid off, stated: “The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”

Has Bitcoin Cash anything to do with this?

It was previously reported that Bitmain sold almost all their Bitcoin for Bitcoin Cash. Also, Bitmain is one of the, if not the biggest, supporter of Bitcoin Cash with Jihan Wu in the front. Believably, Bitmain holds somewhere from 664,000 – 1,33 million BCH coins. Earlier this year, during March, Bitmain had about 22k BTC, but during December 2016, they had about 71k BTC. That indicates that they are either covering their expenses with BTC or selling it for BCH. Who knows how much they have left.

Revenue, profits, and IPO.

These are abnormal figures we’re talking about. For more, last year they recorded a stunning $2 billion in revenue, with $1,22 billion of it being profit. And this is only counting their primary business – mining equipment. God only knows how much other coins have they mined and stored. However, they decided to do an official IPO and managed to raise $400 million with an objective to raise $1 billion before beginning their efforts in securing their IPO. In September they filed for officially going public. That poses a simple question – why do you need more money, when you have almost all of it?

Bitcoin Cash or Bitmain

It looks like Jihan Wu is in an unbearable situation. Mining business is falling, and so is Bitcoin Cash‘s price. Jihan is entirely behind BCH in this recent hash war with Bitcoin SV. Much like dumping his employees, after a while and a few billion, he could stop supporting BCH as well. That would mean a complete loss of hash rate, and possibly the end of this cryptocurrency.

Also, there were rumors from Samson Mow that Bitmain is shutting down their Bitcoin Cash development team Copernicus which was responsible for the Bitcoin Cash GO client.

This bear market is severely damaging the crypto ecosystem, as most of the companies which felt stable last year, or at the beginning of this year, now feel endangered and clueless about their future. Though one thing is not clear – how can you earn so much money (Bitmain) and still ask for more? People are still waiting for Bitmain’s next revenue reports.