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Blocknative Streamlines Operations with Significant Workforce Reduction and Project Suspension

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Oct 11, 2023 at 10:21 am

In response to its decision to discontinue services related to MEV-Boost Relay, a software utilized by Ethereum network validators, Blocknative has initiated a restructuring process. CEO Matt Cutler revealed that this restructuring led to a reduction in headcount of slightly over 33%.

Cutler emphasized that the company's primary focus is on extending their financial runway, allowing them ample time to pursue their Real-Time Observability thesis. Founded in 2018, Blocknative currently employs a total of 24 individuals, indicating that approximately a dozen employees were impacted by the restructuring.

Having secured $12 million in a funding round in July 2021 from investors such as Foundry Group, Blockchain Capital Robot Ventures, and others, Blocknative demonstrated substantial growth after raising $5 million in a seed round just a year prior. Furthermore, the company announced an additional $15 million investment round in December 2022, further solidifying its financial stability.

CEO Cutler stated:

"Taken together, these changes extend our runway to well over three years," underscoring their confidence in the company's future trajectory.

Crypto winter

The restructuring at Blocknative is part of a broader trend of job cuts in the blockchain industry, reflecting the current stalling of digital asset markets, including leading cryptocurrencies like Bitcoin (BTC) and Ethereum's Ether (ETH), contributing to what is commonly referred to as the "crypto winter."

This restructuring followed closely on the heels of Blocknative's announcement that it would cease services related to MEV-Boost Relay, as the project did not achieve the anticipated economic outcomes. Despite this, the company is committed to maintaining its core services, which include offerings like mempool explorer, transaction simulation, Ethereum gas estimator, and Polygon estimator. Cutler assured that existing services will continue without interruption and will receive updates and enhancements, with new services slated for launch by the end of the year.

Read more: Crypto Resurgence: Binance Initiative Overview

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