Ignite reportedly lays off 50% of its staff amid adverse market conditions

Cosmos-founded Blockchain company Ignite has reportedly announced that it is laying off 50% of its staff this week.
Cosmos-founded Blockchain company Ignite has reportedly announced that it is laying off 50% of its staff this week.

Cosmos-founded Blockchain company Ignite has reportedly announced that it is laying off 50% of its staff this week.

As per a recent report by Coindesk, two sources close to the matter told that the company is trimming down half of its employees amid the adverse market conditions. These statements came after the company’s CEO Peng Zhong announced on Friday that he would soon be leaving his position. Moreover, more top executives are reportedly joining the CEO to leave Ignite. The crypto community is questioning the company’s future with the backdrop of a contentious re-org.

Internal issues within Ignite 

Some employees were let go, while others offered their resignation in exchange for a severance package. According to a report, Ignite’s employment reductions were a result of both internal matters and recent market conditions.

Two former employees who spoke to CoinDesk under the condition of anonymity claim that former Ignite CEO Jae Kwon first mentioned the possibility of layoffs when he returned to the organization in May.

In 2014, Ignite (then known as “Tendermint”) and its parent business, All In Bits, Inc., were founded by Kwon, one of the original developers of Cosmos. After a publicly reported dispute with several of Tendermint’s employees, Kwon resigned as the company’s CEO in 2020, but he kept his position on the All In Bits board. Kwon would be returning to the organization as the CEO of “New Tendermint,” an Ignite spin-off centered on some of Kwon’s side projects.

Kwon claimed severance benefits would be provided to some staff when he announced his comeback at a corporate all-hands meeting in May.

One of the former Ignite employees claims that for several weeks after they were announced, details regarding the new organizational structure between Ignite and New Tendermint remained hazy.

This crypto winter has affected several companies in the industry. The largest crypto exchange in the US, Coinbase, trimmed off 18% of its employees in June, as TheCoinRise reported.