The bearish phase of the cryptocurrency market is causing a huge amount of loss to the industries. Start-ups are unable to cope up with the current scenario and therefore, are shutting down the operations of the company. From established firms to naive start-ups everyone has joined the trend of either cutting down swathes of manpower or drawing the shutters.
China-based crypto mining firm Bitmain is shutting down the operations of Bitmaintech Israel, its research and development (R&D) center in Ra’anana, Israel. The R&D center, which produced Bitmain’s first Israeli mining pool ConnectBTC, was launched in 2016 to explore meaningful use cases of blockchain technology as well as artificial intelligence for the company’s Sophon project.
The cryptocurrency market has uprooted many start-ups, who aimed to score big in the crypto market. The market plunge did not even spare financial businessman like Gadi Glikberg, Bitmain’s vice president of international sales and marketing, who held a managing role at the center. Bitmaintech reportedly will put a halt to all its operations and will lay off 23 of its employees.
According to Bitcoin Magazine, Glikberg revealed to employees that, ”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.”
The downward trend of the cryptocurrency market has not only lead to unemployment but also many crypto-startups have gone bankrupt. Citing the continued bearish trend in the market, many start-ups are finding it tough to deal with the crisis. For example, ETC, seventeenth in market capitalization with a value of over $400 million, announced last week that it would be closing shop following a shortage of funds and inability to raise more capital to keep the project afloat, as mentioned in Ethereum World News. On the whole, the bear cycle has thwarted the projects of many aspiring start-ups and therefore, one is forced to refocus its business in accordance with the current situation.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]