Blockchain development company Cosmos cuts 50% of staff, CEO resigns – What’s the reason?

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2022-07-03 05:30:40

Ignite, the organization that develops the Cosmos blockchain ecosystem, parted ways with more than half of its employees this week along with the sudden resignation of the company’s CEO.

Blockchain development company Cosmos cuts 50% of staff, CEO resigns – What’s the reason?

Ignite is not out of the “wave” of layoffs

This news comes after Ignite CEO Peng Zhong recently announced that he is leaving the company, amid a company restructuring that has not yet come to an end and caused much controversy.

“Today is my last day at Ignite. Thank you for the close friendship we shared while building this ecosystem. It is an honor to be a part of this team and community. I will miss you”

Not only that, Ignite also proceeded to lay off some employees and others who volunteered to leave the company in exchange for severance packages, joining other crypto companies that were hit hard by the collapse in the industry. industry, including Coinbase, Crypto.com, BlockFi, Bybit, Bitpanda, Abra, etc. Only Binance and FTX are standing at the moment.

However, Ignite’s workforce cuts are not only driven by market conditions but also by internal factors.

Conflict of interest among company leaders?

Because Ignite is one of the leading and most important companies in the Cosmos ecosystem, formerly known as Tendermint. Founded in 2014 by Kwon with parent company All In Bits, Inc. But he stepped down as CEO in 2020 to focus on another project called Virgo, following a highly publicized dispute with some employees. Despite this, Kwon still holds a seat on the All In Bits board.

When Mr. Kwon left Tendermint, Peng Zhong stepped in to fill the vacancy. Tendermint later rebranded to Ignite. CEO Peng Zhong shared at the time that the rebranding represented a change in strategy for the company, which previously focused on building backend infrastructure for the Cosmos ecosystem.

And unexpectedly in May 2022, Kwon announced his return to the company as the CEO of “New Tendermint” – an Ignite spin-off focused on some of Kwon’s own projects. When Kwon announced his return to work, he announced he would be offering severance packages to some former Ignite employees.

According to a source close to the matter, details of the new organizational structure between Ignite and New Tendermint remained hazy after it was announced. Former employees of Ignite have been invited to apply for a job at New Tendermint, Kwon’s new business. Meanwhile, non-subscribers will be invited to either a reformatted version of Ignite, or a new initiative called Cosmos Cash.

And perhaps because of this dispute between Ignite and New Tendermint in “engaging” employees, the internal conflict has become increasingly tense. The result of the departure of CEO Peng Zhong (Ignite) and a series of colleagues attached to him is also understandable.

Based on statistics revealed by CoinDesk, more than 50 former Ignite employees from various senior departments have been laid off or voluntarily accepted severance packages. This list has been moved to other Cosmos-based projects in search of new opportunities that show the number of people leaving the company could be more than 100 people. Before the incident, the number of Ignite employees was about 140 people.

However, the sudden action of CEO Peng Zhong has raised questions about the future of Ignite and Cosmos. The company website has been updated to focus primarily on blockchain development tool Ignite CLI, while the information about the joint venture branch and accelerator toolkit has disappeared. Additionally, the leading product on the platform is Emeris, a discontinued cross-chain DeFi protocol.

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