The bear market demands more victims. With ConsenSys, one of the most successful blockchain start-ups now has to undergo restructuring. Unprofitable Ethereum projects now threaten the resolution.
The bear market has hit the ether price particularly hard. From its all-time high of just under $ 1,400, Ether began a descent, which should last the whole year. Currently, the price is just above the $ 100 mark. That’s what ConsenSys founder Lubin felt. After all, Lubin is considered one of the largest, if not the largest, Ethereum hodler.
In a newsletter to all ConsenSys projects that BREAKER has received, Lubin recently announced the company’s entry into a new phase. Given the market situation and increasing competition in the field of blockchain development, ConsenSys now wants to impose a stricter level of support for Ethereum projects.
“We will be much stricter on milestones and schedules,”
This also means that ConsenSys dissolves projects that have “proven wrong in previous assumptions”. Employees of failed projects should, if possible, be accommodated in other projects. However, Lubin does not rule out layoffs. Which of the over 50 projects sawed off, about Lubin has not yet given any information.
However, the signs are good for the ConsenSys flagships Metamask, Truffle and Infura. This led Lubin on December 1 as evidence that the contested market capitalization does not provide an appropriate indicator of developer activity within a blockchain ecosystem. More than one million downloads of Metamask and Truffle as well as 51 million Ethereum addresses are proof that “Blockchain is more than a market. It’s a movement. “With these words, Lubin introduced a Tweetstorm in which he refers to numerous Ethereum projects that are already used in the real world.
The blockchain-based journalism platform CIVIL is also one of the projects sponsored by ConsenSys. Lubin, however, refrains from citing it as an exemplary use case. CIVIL may not meet the new requirements of “ConsenSys 2.0”, which in addition to the technical and social diversity of a project also attach greater importance to its profitability. Especially in the last point CIVIL was not able to shine because of the failure of the ICO – despite well-known cooperation partners.
Even if Lubin wants to give a different impression in his Tweetstorm – the Ethereum ecosystem itself is only partially representative of a growing activity of the Blockchain developers. So leads competitor EOS in terms of blockchain activity – with immense distance to the rest of the field.
The data of blocktivity.info also show the lack of scalability of Ethereum and Bitcoin. At the time of writing, the Ethereum Blockchain is 100 percent utilized; over 100,000 transactions are still awaiting confirmation. Therefore, it is not hard to see solutions such as the Lightning Network in Bitcoin and Sharding or Plasma or Casper being pursued at an increased pace.