ETCDev Shuts Down As Crash Destroys Company Finances

[PRIBO247]

The development firm behind Ethereum Classic (ETC) will
be shutting down immediately. ETCDev had struggled to
raise sufficient funds in order to continue its operations.
The company, which had been in operation for two and a
half years, said its financing issues partly stemmed from
the crypto market downturn.

ETCDev’s founder and CEO, Igor Artmanov, said on Twitter
earlier today that they had no choice but to shut
down immediately. A shortage of ready cash and a drop in
the value of the company’s crypto assets meant ETCDev
was no longer financially secure. The company had
appealed to members of the community, as well as external
investors, for additional funding but there was not enough
to meet its short-term needs.

“As is publicly known we have struggled with funding our
operation in the last few weeks”, Artmanov said in an
announcement. “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.“

The end of ETCDev
Ethereum Classic received a boost during the summer when
it was listed on Coinbase. ETC tokens, which had benefited
from last year’s bull run, shot up. The coin’s total value
went up by over $600m. But like many other
cryptocurrencies, the last few months haven’t been kind to
ETC price. Its value slid downwards since the beginning of
August, from approximately $16.50 per coin to its current
valuation of $4.62. More than half of ETC’s value was
wiped across November during the market wipeout.

For ETCDev, which had a large holding in ETC, this
represented a significant drop in the company’s assets.
The company’s ability to fund new projects and develop
existing ones, like the Emerald Wallet, were severely
restricted.

There had been rumors that ETCDev faced financial
difficulties, but it only publicly admitted this today.
ETCDev is not the only company to fall victim from the
crypto market crash. GPU chip maker, Nvidia, has also
reported its own crypto hangover. Having produced large
amounts of chips during last years bull-run, the firm has
been left with significant amounts of unsold stock as prices
fell and enthusiasm waned.

IOHK remains the only other development company focused
on building the ETC ecosystem. But it is also busy
developing the Cardano (ADA) platform.
The loss of the one dedicated development company will be
a blow for Ethereum Classic.

Source : https://cryptobriefing.com/