Breaking: Polygon Labs Cuts Staff, Community Concerned Over Spending

Polygon MATIC News: Citing consolidation of business units, Polygon Labs announced it was reducing staff count by 20%. This would impact around 100 employees, who would receive a three month severance pay as part of the consolidation. However, the crypto community raised concerns about its treasury, which the company said was at a balance of $250 million besides MATIC assets.

The Polygon Labs explained that huge spending was made on the its ecosystem projects. The MATIC price dropped as much as 6% with the news of Polygon layoffs.

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Polygon Labs Cutting Staff

The crypto market witnessed a spree of layoffs with bigwigs like Coinbase laying off employees over the last few months, as the crypto winter had only worsened. In this context, the crypto community raised questions about the spending by Polygon team, in the wake of the layoffs. The Polygon founders said in a statement that the layoff decision was strategic although their treasury remained healthy. The team said it was prioritizing bring together all teams under Polygon Labs to drive more growth.

They hold a balance of more than $250 million and more than 1.9 billion in $MATIC, the statement added. However, the crypto community wanted to know about the $450 million it raised in early 2022. Reacting to this, Ryan Wyatt, the president at Polygon Labs, said a majority of the $200 million was spent on ecosystem projects and ecosystem fund.

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In the last 12 months, Polygon (MATIC) gained significant user interest, which reflects in the $12.22 billion market cap. There were also several partnerships between mainstream companies and players in the Polygon ecosystem. In a recent development, a streaming app on Polygon inked a deal with Samsung, the electronics giant, for access to images and videos. As of writing, the rank 9 cryptocurrency’s price stands at $1.40, down 6.20% in the last 24 hours, according to CoinGape price tracker.