Ethereum Classic Shutting Down Amidst Financial Woes
December 4, 2018 11:20 am
Ethereum Classic’s (ETC) leading development firm is shutting down its operations. ETCDev has struggled to raise the needed funds which were necessary to continue their operations. The company has not been operating for the past two and a half years. The bearish run of the cryptocurrency market is partly responsible for this situation.
Igor Artmanov, CEO and founder, ETCDev shared his thoughts through Twitter, saying that the operations need to be shut down immediately. The significant drop in the company’s value due to the cryptocurrency market crash, combined with the shortage of cash. The company did try to convince the community members and external investors for additional funding, though it did not suffice the required needs of the company.
“As is publicly 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.”
The market crash in the past month has been nothing short of brutal and it is highly likely that more cryptocurrency companies might be forced to shut down their operations. Ethereum Classic did receive a boost when it was listed on Coinbase during summer. During the bull run, it’s total value was hovering over $600 million. Since August began, the constant fall in ETC’s price has resulted in the currency losing three-fourths of its value. The currency fell from $16.50 to an alarming $4.62.
Even GPU manufacturers have faced the wrath of the unforgiving market. Nvidia reported that the additional chips it produced for cryptocurrency mining have largely been unsold due to the market crash.