The leading development firm behind Ethereum Classic ETCDEV recently announced that it will be shutting down its operations due to the lack of funding. The firm had been operating for two and a half years and it apparently struggled with its finances owing to the market crash that was seen in the recent times.
The company recently tweeted a picture on its Twitter handle that explained the situation thoroughly. The founder and CTO of the firm Igor Artamonov explained that ETCDEV has now stopped all of its activities related to Ethereum Classic.
Igor explained that this step is taken owing to the cash crunch that was being faced by the company and also due to the huge market crash that was seen over the past few weeks.
Igor also stated that contacts were made with investors in the community, but none proved to be fruitful. Community funds were also chosen but then again, none proved to be enough to provide short-term financing to the company.
At the end of the note, Igor thanked the developers and people who helped the platform build great products and pursue its vision over the past two and years.
Unfortunately ETCDEV cannot continue to work in the current situation and has to announce shutdown of our current activities pic.twitter.com/N6xWnpBNJJ
— ETCDEV (@etcdev) December 3, 2018
Now, what does this happening signify for the crypto and blockchain world overall? Ethereum Classic is a very big project and it facing the issue regarding finances comes off as very alarming for the investor community. Cryptos are expected to revolutionize the world of finance, as claimed by some, and it facing such basic issues mean there might be certain problems that are sitting at the core of this crypto world.
ETCDEV not being able to raise money for running operations might also signify that the trust of investors is dropping in this world. This might be a signal that we are reaching towards market saturation as more and more crypto projects are springing up.
In the hindsight of this, questions are beginning to circulate regarding the usage of money raised and collected by the people in the crypto arena. Investors and people supporting a project need to be well aware of the policies according to which the projects are going to spend their money raised.
The news of ETCDEV shutting down comes off as surprising because the world which claims to be the “alternative” to traditional fiat currencies, or at least a supplement to it, is facing such an extreme crisis.
The crypto space seems to be flooded with scams and issues like the lack of regulation, manipulation etc. This mess needs to be cleaned up as soon as possible if this world aims to flourish and grow.
One thing is for sure, it is a very muddy and sensitive space to tread.