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Cosmos developer Ignite sees mass exodus and layoffs as CEO exits
Two more top executives, along with CEO Peng Zhong, have left the Cosmos developer, four months after it was rebranded from “Tendermint.” Hints of layoffs at Ignite were first dropped in May when former CEO Jae Kwon returned. The grim wave of industry layoffs continues to sweep the crypto landscape, with Cosmos blockchain developer Ignite (formerly Tendermint) the latest to downsize. Ignite CEO Peng Zhong said Friday that he has officially left the company. The company's headcount has been reduced by over 50%, CoinDesk reported Saturday, citing two former employees and a source close to the matter. …
Cosmos developer Ignite sees mass exodus and layoffs as CEO exits
- Zwei weitere Top-Führungskräfte haben zusammen mit CEO Peng Zhong den Cosmos-Entwickler verlassen, vier Monate nachdem er von „Tendermint“ umbenannt wurde.
- Hinweise auf Entlassungen bei Ignite wurden erstmals im Mai fallen gelassen, als der ehemalige CEO Jae Kwon zurückkehrte
The grim wave of industry layoffs continues to sweep the crypto landscape, with Cosmos blockchain developer Ignite (formerly Tendermint) the latest to downsize.
Peng Zhong, CEO of Ignite, said Friday that he officially left the company. The company's workforce was reduced by over 50%, CoinDesk reported on Saturday, citing two former employees and a source close to the matter.
While some were laid off, others left voluntarily in exchange for severance pay, the report added.
According to a February update, Ignite's headcount stood at 120. Following the recently reported layoffs, it is estimated that nearly 60 employees have left the company.
CoinDesk said two other unnamed top executives joined Zhong and left Ignite. Their departures occur four months after the company renamed from Tendermint as part of a reorganizational restructuring.
The company was founded in 2014 by co-founders Jae Kwon and Ethan Buchman and is best known for its role in the founding of the blockchain protocol Cosmos.
Today is my last day at Ignite. Thank you for the camaraderie we shared in building this ecosystem. It was an honor to be part of this team and this community. I'll miss you.
— Peng Zhong (@zcpeng) July 1, 2022
Kwon left his role as CEO in 2020 amid concerns about the exercise too much authority but he returned to the company in May divided into two separate entities – Ignite and NewTendermint.
A source told CoinDesk that the layoffs were first hinted at during Kwon's return in May. They said details about the new organizational structure between Ignite and NewTendermint were unclear for several weeks.
Employees were reportedly given the opportunity to apply to NewTendermint. Those who didn't were told they would be invited to join a revamped version of Ignite - a company called Cosmos Cash that mirrors the Bitcoin hard fork that spawned Bitcoin Cash in 2017.
Kwon reportedly said that not all employees would take the cut.
Ignite weighed down by Cosmos price collapse
The downturn in cryptocurrency markets is said to have worsened Kwon's initially predicted job cuts.
Cosmos' native token ATOM is down 73% so far this year and is down 13% in the last month alone to $8.01 as of 5:00 a.m. ET on Monday, data from Blockworks Research shows.
Zhong did not announce who will succeed him as CEO, raising concerns that Ignite's leadership could be at stake. Ignite and Kwon did not immediately respond to Blockworks' request for comment.
Ignite joins a number of other high-profile names laying off employees, including Celsius, BlockFi, Coinbase, Gemini, Crypto.com and Vauld.
Cryptocurrency markets have lost 60% of their collective value year to date, with leading digital asset Bitcoin falling from $46,300 to below $20,000.
“The narrative remains bearish with anything possible [bitcoin price range from] $20,000 to $10,000,” wrote analysts at Digital Asset Investment Management in a last report. "But maximum pain in Bitcoin generally means maximum opportunity. There will be a time when the negative news runs out."
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The post Cosmos Developer Ignite Sees Mass Exodus and Layoffs as CEO Exits is not financial advice.