Ethereum Classic News: ETCDev, a leading development firm behind Ethereum Classic (ETC) have been struggling to raise sufficient funds in order to continue its operations and has decided to shut down immediately.
After two and a half years in operation, ETCDev faces financial issues that can in part be attributed to the current market downturn. Igor Artmanov, ETCDev’s founder and CEO, announced on Twitter that they had no choice but to shut down immediately. He elaborated that a shortage of ready cash and a drop in the value of the company’s crypto assets meant ETCDev was no longer financially secure. Artmanov said in the company’s announcement.
“As is publically known we have struggled with funding our operation in the last few weeks. This was partially due to the market crash, combined with a cash crunch in the company. We appealed to investors in the ecosystem as well as external to it. We also did the community fund, but in none of these cases were we successful in securing short-term financing.“
Unfortunately ETCDEV cannot continue to work in the current situation and has to announce shutdown of our current activities pic.twitter.com/N6xWnpBNJJ
— Emerald (@getemerald) December 3, 2018
During the summer when Coinbase listed ETC, the token experienced a boost, the coin’s total value went up by over $600m. However, in the market downturn, the token experienced a de-growth like many other cryptocurrencies. Since the beginning of August, its value slid downwards from approximately $16.50 per coin to its current valuation of $4.62. In November, half of ETC’s value was wiped across.
ETCDev has a large holding in ETC, the downward trend caused a significant drop in the company’s assets. Eventually, taking away the company’s ability to fund new projects and develop existing ones. For instance, projects like Emerald Wallet were severely restricted. The rumours about ETCDev’s financial difficulties were making the round, that has just been confirmed.
Not the only company to fall victim to the crypto market crash, Nvidia, the GPU chip maker also reported its own crypto hangover. During the bull run, the company produced large amounts of chips during last years bull-run and as the prices fell and enthusiasm waned, significant amounts of unsold stock was remains.
With IOHK the only other development company focused on building the ETC ecosystem, Ethereum Classic might have a massive blow from the loss of the one dedicated development company.
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