ConsenSys, the parent company behind MetaMask, is laying off 11% of its workforce, with CEO Joseph Lubin blaming “uncertain market conditions” caused by recent collapses.
In a Jan. 18 blog post by ConsenSys CEO Joseph Lubin, the blockchain firm’s CEO said that “misbehaving” centralized finance (CeFi) actors have cast a “broad palette of our ecosystem that we’re all going to have to work through.”
Lubin said the decision will affect 96 employees and is part of plans to focus its resources on its core business.
Today we have to make the extremely difficult decision to streamline some ConsenSys teams to adapt to challenging and uncertain market conditions.https://t.co/Svuk9yYj6J
— Joseph Lubin (@ethereumJoseph) January 18, 2023
In an interview with Cointelegraph a few days before the layoffs were officially announced – although they were already widely reported – Lex Sokolin, Chief Cryptoeconomics Officer at ConsenSys, said the industry is still far from global mass adoption.
“We’re still in a place where this is an emerging technology. It is not fully understood by the general public,” he said.
According to Consensys, during its last run, more than 30 million users were using MetaMask each month to access DeFi protocols, mint and trade NFTs, and participate in DAOs. While promising, it is a drop in the bucket globally.
“MetaMask has 30 million monthly users, and there are maybe 500 million addresses in Web3,” Sokolin said. “But that’s not five billion people.
When asked when cryptocurrencies will enter the mainstream, Sokolin said that it is primarily a matter of having enough compelling use cases for cryptocurrencies, as well as a thriving ecosystem to support it.
He also rejected the idea that it would result in a better user experience and clearer regulations.
“It’s not the things people say. [such as] ‘when will UI be better’ or ‘when will regulation improve it.’ These are important, but […] they are not a catalyst,” said Sokolin, adding:
“The catalyst for things is one: Will there be enough things on Web3 to buy that I want to own?”
“If I live in Web3 and my avatar and my social media and my data and my status as a person, prestige, community […] it is tied to me owning digital objects […] you will inevitably get to a place where everyone wants to transact business on Web3.”
“So for me, the most important thing is economic acceptance. Because it pulls the rest into the ecosystem.”
In his latest post, Lubin said the company will focus on streaming its workforce and focus its business on core values, including the MetaMask end-user management solution, the Infura developer platform, and “new offerings” that expand Web3 trading and decentralized autonomous organization . (DAO) community.