Tag: Startup

Categories
News

Consensys To Lay Off Half Its Staff Or More

In the wake of cryptocurrencies losing hundreds of billions in market capitalization – it’s been tough for cryptocurrency companies and blockchain startups of all kinds. Of course, to some – this means that it is perfect time to invest in companies, while the sector is quiet, and before more institutional money comes in.

Consensys apparently will be laying off a significant percentage of its staff, a further sign that the cryptocurrency markets are not conducive to blockchain startups thriving at this time.

About Consensys

However, one blockchain startup that is clearly having issues is Consensys. Consensys is one of the most discussed blockchain startups, because it is founded by Ethereum co-founder Joseph Lubin, and is one of the few high-profile blockchains startups in New York City (Consensys is based in Brooklyn).

For those who are unaware, Consensys was founded earlier than many other blockchain startups, in 2014. The startup is ambitious, and aims to develop various blockchain-based services, platforms, and infrastructural projects in various sectors.

Layoffs

To Lubin’s credit, he appears to have seen this problem coming for a while. He recently addressed the urgency to remain “lean” during this bearish phase, writing in a letter to his staff: “We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe…we must recognize that what got us here will probably not get us there, wherever ‘there’ is.”

 

It is clear that Consensys will be doing more than simply restructuring, but instead will be laying off more employees. It’s important to note that many believed the company had already trimmed costs by laying off 13% of its staff not too long ago, but apparently, it wasn’t enough.

The company plans on spinning out startups and laying off up to 50-60% of its staff, according to an unnamed source. A representative for Consensys apparently did not deny this assertion.

A source pointed out that the environment at the company is more tense than ever, stating: “The office is empty, people are only finding out who’s getting fired because you try to to send Slack messages and they’re not there,” a source says. “ConsenSys won’t create a list [of the projects that are being spun out] or send out anything in writing because they’re afraid of everything going to the press.”

 

Categories
News

Binance Labs Launching Blockchain Startups

There is no denying the fact that Binance is one of the most important companies in the cryptocurrency sector. This shouldn’t come as much of a surprise, considering it is the world’s largest cryptocurrency exchange by daily volume, and is steadily expanding worldwide, in countries all around the world.

Binance Labs has also apparently been focusing on incubation, as it has officially announced the launch of eight projects that the company has been incubating for months. Specifically, the company has not only provided mentorship for these projects, but resources, as well.

Expansion Plans

Several months ago, Binance announced a joint partnership with the Lichtenstein Cryptoassets Exchange (LXC) in order to launch a fiat-to-crypto exchange. The Prime Minister of Lichtenstein even commented on the venture, stating: “We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LXC and other blockchain companies to provide exceptional services here in Liechtenstein.

That isn’t the only place that Binance is expanding, however. The company recently made headway in Uganda, signing up 40,000 users in its first week, which seemed to confirm the idea that Africa’s demand for cryptocurrency is legitimate. This is significant, considering that many consider Africa’s unbanked population to be a massive opportunity for the fintech sector.

Project Launches

Ella Zhang, the head of Binance Labs, elaborated that Binance was dedicated to building a blockchain ecosystem worldwide. She stated: In the long run, we aim to build up a strong blockchain ecosystem and network of BUIDLers around the world. Our first incubation program in San Francisco was an amazing experience and we are grateful to the mentors, advisers and friends who helped our BUIDLers during the 10 weeks. We are very excited to expand our program next season and meet with blockchain projects across five different continents — scaling quickly, that is Binance speed.

 

The program was selective, with over 500 projects applying. However, only eight startups will launch. They include projects such as SafePal, which markets itself as the “best hardware wallet ever”, and Torus, which aims to help ease the process of logging into decentralized apps.

 

Categories
News

Crypto Lending Coming To Australia

There have been many individuals in the cryptocurrency space that have pointed out how blockchain technology can revolutionize the global payment sector for several reasons. For example, money can be sent and settled in real-time, which means that the receiving party does not have to wait days to receive the money. In addition, the recipient can also receive more money, because cryptocurrency does not utilize the exorbitant fees that traditional financial institutions, such as banks, do.

Lending and Blockchain

It also follows naturally that blockchain could potentially revolutionize the lending sector, as well, as loans would be cheaper to issue, and blockchain might be able to offer more transparency. In addition, blockchain and its immutable nature makes it more secure, which would mean that less forgery would be possible.

One company that has championed the idea of cryptocurrency lending and has gained traction the last year is Melbourne-based Helio Lending, a company that is actually a licensed and regulated cryptocurrency lender.

Crypto As Collateral

The idea of crypto lending is unique in particular because it would allow customers to actually access fiat funds without touching their digital assets. For those who truly believe in their cryptocurrency investments, this could be extremely appealing. For example, those who have been long-term holders of Bitcoin and accumulated years ago, can leverage their Bitcoin holdings and gain access to cash. The company claims to offer 50% more spending power to customers than they would by simply holding onto their crypto assets.

Founder John O’Shea had this to say about the untapped potential of the market: “Currently there are only two or three providers globally, and we are excited to offer such an exciting service acting as a direct lender, with a quick and seamless process and exceptional customer service.”

In a separate interview, O’Shea stated: “We provide finance to both individuals and businesses through cryptocurrency asset-backed lending. This means that clients who hold Bitcoin, Ethereum, Litecoin, or Ripple can use their assets as collateral for loan financing.”

Location, Location, Location

Helio Lending is smart to be exploring the Australian market, in particular. A recent survey indicates some astonishing information about 2018 and the Australian interest in cryptocurrency. Apparently, a brokerage firm by the name of Hivex surveyed thousands of respondents and found that the number of Australians that hold cryptocurrency may have tripled in 2018, despite the bearish market. In addition, an astonishing 80% of those surveyed would be open to using crypto for daily purchases, as well.

 

Helio Lending does require a minimum borrowing amount of 1,000 Australian dollars, and it follows traditional KYC and AML procedure, as well.