Protocol Labs has become the latest cryptocurrency company to carry out mass layoffs, it reported on February 28. 3 A report from Forbes.
The company has reportedly laid off 89 people, representing 21% or roughly a fifth of its workforce. The company cited poor market conditions and “macroeconomic challenges… regarding the dynamics of Filecoin” as the reason for the layoffs.
Protocol Labs has not officially announced layoffs. Instead, Forbes obtained the information from documents provided by the let go employee.
Protocol Labs is perhaps best known for Filecoin, a blockchain that rewards distributed storage providers with cryptocurrency. When Filecoin ran its ICO in 2017, it raised $205 million, more than any other similar token sale raised at the time. Filecoin remains among the 35 largest crypto assets, with a market capitalization of $2.1 billion.
The company is also known for IPFS, a distributed storage network that does not integrate cryptocurrency but is often used alongside Ethereum. Infura specifically provides API gateways for both networks. Some Ethereum applications, such as Peepeth, also store data on IFPS.
Protocol Labs is just one of several companies laying off workers this winter. Silvergate, ConsenSys, Gemini, Huobi, and Coinbase are among the others that do this.