Cosmos (ATOM) altcoin Ignite, the company that founded its blockchain, parted ways with two former employees and more than half of its employees this week, according to a source.
The news comes after Ignite’s CEO, Peng Zhong, announced on Friday that he will leave the company. According to one of the sources, Zhong was joined by other senior executives at the firm. Against the backdrop of a controversial restructuring, high-profile breakouts at Ignite put the firm’s future into question.
Ignite Is The Last Altcoin Company Affected By The Drop In The Cryptocurrency Market
Ignite laid off some of its employees and others volunteered to leave the company in exchange for severance pay. The company thus cryptocurrency Affected by the recent crash in its market, BlockFi joined giant crypto companies such as Coinbase and Crypto.com. However, according to sources, conditions in the cryptocurrency market were not the only factor behind Ignite’s layoffs.
The potential for layoffs was first announced by former Ignite CEO Jae Kwon when he returned to the company in May, according to two former employees who spoke on condition of anonymity.
Kwon, one of the early founders of Cosmos Blockchain, founded Ignite, then called Tendermint, and All In Bits companies in 2014. Kwon stepped down as CEO of Tendermint in 2020 after a widespread conflict with some of his employees, but retained his seat on the All In Bits board.
In May, Kwon returned to the company as the CEO of the “New Tendermint” subsidiary, where some of Kwon’s side projects began to be worked on.
According to sources, Kwon said some employees would be offered severance packages when he announced that he would return in May at a meeting attended by all of the company’s employees.
The source said that the crypto crash in June forced Kwon to cut headcount more than originally anticipated.
*Not investment advice.