Steemit, the blogging and social media website that uses a token to reward publishers and curators, has become the latest victim of a weakened cryptocurrency market. 

CEO Ned Scott announced in a Tuesday blog post and separate video the two-year-old Virginia company would be cutting 70 percent of its approximately 200 employees.

Steemit marketed its blockchain-based media platform as a more cost-efficient, fairer option for publishers and curators of online content. Steemit rewards these groups with Steem tokens.

In ths post Scott cited the “weakness of the cryptocurrency market, the fiat returns on our automated selling of STEEM diminishing and the growing costs of running full Steem nodes” as the reasons for the cuts.

“In order to ensure that we can continue to improve Steem, we need to first get costs under control to remain economically sustainable,” he added. “There’s nothing that I want more now than to survive, to keep operating, and keep the mission alive, to make great communities.”

The remaining staff will “focus primarily on reducing the costs of the infrastructure running and our public APIs, and ensuring that the community can remain informed of developments.”

In the video, Scott said the cryptocurrency market had bottomed out “far further” than the company had expected.

However, he hasn’t given up on cryptocurrency, saying in his blog post it “has the potential to spawn the next killer application that can rival the Instagrams and Reddits of the world, and that fuels the mission to make great communities, which need unrestricted access to financial tools.”

ThirtyK Staff
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