Recently, it was reported in ‘The Block’ that cryptocurrency, Po.et, had laid off a decent portion of its team:
Po.et, the decentralized digital rights management platform, has laid off 5 employees – including contractors – according to CEO Jarrod Dicker. They held various roles on the firm’s engineering team, according to Dicker. Po.et is a subsidiary of BTC Inc., the parent company of many well-known digital media companies in the crypto space.
It isn’t beyond the realm of conception that this was due to the sheer fact that the markets have tanked recently and general investment in the crypto community has fallen off substantially. Perhaps po.et can no longer keep up with operation costs.
Without any concrete answers provided by the team themselves for why they were laying off so many employees, crypto observers can only speculate at this point.
However, one must ask whether this affects the health of the project as a whole. With the recent insolvency of ETCDEV, the primary development team behind Ethereum Classic, the crypto bear market has developed a reputation of claiming numerous high profile victims.
What is Po.et?
According to their website,
“Po.et is a protocol for content ownership, discovery, and monetization in media. Our mission is to power a better web built around the virtues of trust, verifiability, and accountability for media organizations and content creators. In the same way that blockchain technologies have revolutionized the financial industry, Po.et wants to transform the publishing industry by creating an immutable and distributed ledger for creative works that may serve as a platform for both centralized and decentralized media applications.”
Currently, at press time, the cryptocurrency $POE is trading for 134 sats, which is well below its all-time high of 1265 sats:
Thus, it is plausible that the team may be finding it difficult to continue funding any potential future development on the project given the fact that the price has depreciated by approximately 90%.
No Mention of the Layoffs Anywhere on Social Media
For some reason, there is absolutely no mention of any of these lay-offs anywhere on the official Po.et social media at the time of publication. It appears that this topic has been completely avoided on the Twitter page for Po.et as well.
Po.et is Devoid of an Adequate Business Model
One of the issues for Po.et and several other projects in the cryptocurrency space is that there is no adequate business model for them.
The philosophy that many projects (ICOs) have adapted to is that they will simply issue a token and then keep a portion of that token for themselves, so that they can sell it off to the highest bidder in the future in order to continue to fund operations.
However, the main problem with such models is that they never accounted for a scenario in which the general demand for the token would depreciate to the extent that the crypto market has (well over 90% in some cases).
Therefore, with no serious demand for some of the tokens that were issued earlier in the year, teams will be forced to continually downsize until they either run out of money for funding and cease to function or they exit the space entirely by merely dumping the rest of their funds.
In no way is this meant to imply that Po.et may take the same course of action, but without a viable means of continuing their funding, this should not be a scenario that is ruled out.