Investors Are Conscious About Unusual ConsenSys Financing
ConsenSys, the Ethereum-based venture production studio, is transiting into the so-called “ConsenSys 2.0” and will be an uphill battle, anonymous sources familiar with the company’s inner workings, Coindesk reports.
According to a report, since the 90% decline in Ethereum (ETH) prices after the recent bear rally, over 50 “spokes” or startups under the company might be in trouble.
Lubin acknowledges some of the difficulties. “Accountability has been an issue at ConsenSys,” he says. “We’ve been working to put in place various mechanisms to make it clearer who’s responsible for what and to ensure crisp accountability.” But he also cites real benefits to his mesh architecture. Projects are collaborative, and silos are easily breached. Employees report that there is little stigma attached to questioning others’ assumptions. And some insiders report feeling empowered by the autonomy—especially the opportunity to move laterally among projects.
Late last year the Lubin indicated that the company has decided to “streamline” the organization and shut down underperforming projects. Joseph Lubin told Breaker in an interview that the company has become difficult to manage.
Potential investor trouble is not the only dark cloud looming over ConsenSys—the studio’s staff is reportedly feeling very insecure about their jobs following the recent layoffs, the anonymous employee told CoinDesk, adding that he predicts the studio to eventually end up at “roughly one-sixth of its current size.”