Have you heard of Steemit, the crypto version of Reddit? If you have never heard about it when it was launched, there is a certainly good chance that you may have heard about it when the company decided to lay off 70% of its staff last year.
Steemit was one of the companies that laid off more people when cryptos were hitting their lowest point. The company, which was celebrated as an early success case in the crypto industry, decided to cut off 70% of its employees back in November because of the so-called Crypto Winter.
Many other companies like ConsenSys also had massive layoffs at the time, but this was one of the largest ones to fire so many people.
Now, however, it seems that the company is set to rise like a phoenix and a new boss has come to take care of the company after all the financial trouble that Steemit has suffered from. The new managing director of the company now is Elizabeth Powell.
She was the head of communications of Steemit before being promoted and she’ll replace the last CEO, Ned Scott, now, which has moved to the executive chairman of the company, which only has 12 people working there after firing so many people.
The token created by the company, Steem, was the main reason why the layoffs happened. The token crashed together with the whole market, as it was valued at $7.31 USD at the peak of the bull run in January and it crashed all the way down to $0.41 USD, meaning that the token lost over 90% of its value during 2018.
While the company never actually held an Initial Coin Offering (ICO) and, therefore, it did not have angry investors losing money, all the tokens were mined, so people kind of lost their interest in the company as the prices dwindled.
Powell joined the company last year and had a quick career on it, becoming the new director in less than a whole year, which has caused some people too concerned with her inexperience, as appointed by Techcrunch, which used inside sources to verify this information. However, some other people believe that an outsider can actually be a good thing as she will be able to bring fresh perspectives to the company.
Advertising As A Solution
Powell has clarified that the company is revamping its road map and that the new focus is on finding new ways to increase the revenues to keep the business afloat, so this means increasing ad revenues and trying to reduce costs without making the service worse.
Ads will now be the way for the company to move on during a prolonged bear market. Only with the stable money from advertising flowing it will be possible to improve the company’s platform during a market in which the prices are simply not getting any better as the investors have lost trust.
Steemit was founded in 2016, way before the Bitcoin hype. It was a very early project for the industry and a very successful one, as it managed to have over a million registered users there. The site was projected to be like Reddit, only even more decentralized and without any kind of removal or censorship.
In fact, most of the marketing made by the company at the launch was aimed at being Reddit’s less authoritarian cousin, a popular motto as a lot of people were angry with subreddits being shut down at the time and affirmed that the moderation was, in fact, censorship, an opinion contested by other participants of the popular social network.
Users could compensate one another in the social network by giving their own tokens to popular content. Unfortunately, the business has struggled to grow a lot outside of the eager crypto community. While crypto investors and fans love the site, most of the mainstream public seems to be far away from it.
Most of the criticism regarding Steemit comes from the fact that some people consider it not to be very original and to have failed to go mainstream and achieve to get a wider public.
Will 2019 be the year for Steemit? That is something that only time will tell.