Blockfolio Reportedly Downsizing Months After Raising $11.5 Million
Last October, Blockfolio, a popular cryptocurrency portfolio monitoring app, raised an $11.5 million Series A round led leading Pantera Capital, bringing the startups total funds raised to $15 million in 2018.
Following the round, Blockfolio publicly announced a lavish ‘launch’ party in Santa Monica at the Shangri-La Hotel, bucking the trend of moderation and consolidation in the cryptocurrency industry as the bear market drags into its thirteenth month.
— Harrison Wang (@harrisonwang13) October 1, 2018
However, according to a recent report by The Block, Blockfolio has now downsized its team of employees from 41 to 37 while its affiliate company, DataBlock, also terminated contracts with five people.
According to a recent interview with CEO Edward Moncado, the decision to lay off the employees was a result of a restructuring that began in December due to the bear market. However, sources familiar with the matter revealed that the company’s need to restructure is tied to its unsustainable burn rate, which included the launch party, a seven-person trip to Prague and “extravagant” daily catered lunches.
Additional internal concerns surround the company’s monetization strategy, with sources stating that Blockfolio hasn’t yet decided how to cash-in on its multi million-person user base. The leading option will likely come in the form of ads, according to insiders.
While Blockfolio has seen significant adoption with its Signal feature, which allows token projects to communicate updates directly to investors, the list of competitors has grown in recent months. Both Delta and CoinGecko recently launched similar offerings, reducing the exclusivity of information found on Blockfolio.
Given the recent treasury problems, it would not be surprising to see Blockfolio attempt to monetize its app sooner than later.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.