Filecoin’s Protocol Labs lays off one-fifth of staff

Protocol Labs has become the latest cryptocurrency company to carry out a mass layoff, according to a Feb. 3 report from Forbes.

The company reportedly laid off 89 people, representing 21% or approximately one-fifth of its workforce. The company cited poor market conditions and “macroeconomic challenges…in relation to Filecoin dynamics” as the reason for its layoffs.

Protocol Labs has not officially announced the layoffs. Instead, Forbes obtained the information from documents provided by an employee that has been let go.

Protocol Labs is perhaps best known for Filecoin, a blockchain that rewards distributed storage providers with cryptocurrency. When Filecoin ran its ICO in 2017, it raised $205 million, more than any other similar token sale had raised at the time. Filecoin is still among the 35 largest crypto assets, boasting a market cap of $2.1 billion.

The company is also known for IPFS, a distributed storage network that does not integrate cryptocurrency but is often used alongside Ethereum. Infura notably provides API gateways for both networks. Some Ethereum apps, such as Peepeth, also store data on IFPS.

Protocol Labs is just one of several companies to carry out layoffs this winter. Silvergate, ConsenSys, Gemini, Huobi, and Coinbase are among the other companies to do so.