DeFi firm Consensys announces job cuts

job cuts, blockchain, cryptoBlockchain software firm and advocate for decentralised finance (DeFi) Consensys is the latest company to fall foul of the crypto bear market and the after-effects of the FTX scandal after announcing job cuts.

The company, led by Joseph Lubin, co-founder of Ethereum, is to shed 96 jobs, equivalent to 11% of its workforce.

In a statement posted on the company’s website, Lubin cited the bear market in the web3 sector as well as various macroeconomic factors.

He also took a swipe at the crypto-centralised finance (CeFi) sector, which includes crypto exchanges such as FTX.

“Some of the poorly behaved CeFi actors in our space have brought a reckoning on themselves, which has cast a broad pall on our ecosystem that we will all need to work through,” wrote Lubin.

In 2022, Consensys reached a $7 billion valuation on the back of a $450 million funding round, including Singapore wealth fund Temasek and Microsoft.

Following the job cuts, Consensys announced that it would focus the business on two of its developer platforms – Metamask and Infura.

In his message, Lubin also criticised the “money crypto” companies in the web3 sector that he describes as looking a “lot more like traditional finance: third-party custody, third-party facilitated payments, illicit finance and market manipulation”.

“We’re building a future where you don’t — shouldn’t — have to trust an institution to ensure you have access to your assets or can participate in activities that create value broadly for communities,” wrote Lubin.

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