Peng Zhong, CEO of Ignite (the company behind the Cosmos Blockchain ecosystem), announced He resigned on Friday. Zhong’s departure comes just a few months after the firm recently changed its name from Tendermint to Ignite as part of its reorganization plan.
In February, Tendermint rebranded itself to “Ignite” to bring fresh change and action within the company.
Ignite was further divided into two entities in May: NewTendermint and Ignite. The return of Jae Kwon, the original co-founder of Ignite, led to the company’s split into two business subsidiaries during that month.
With the split, Ignite’s original co-founder, Mr. Kwon, rejoined his old team as the CEO of NewTendermint while Mr. Zhong, the current CEO of Ignite, remained as CEO of the newly restructured Ignite.
Zhong’s resignation is considered to have been fueled by Kwon’s return to the company.
Kwon was the co-founder of Ignite in 2014 with its parent company, All In Bits Inc. The executive stepped down as Tendermint’s CEO in 2020 after fierce disputes with some of its staff, but he retained a seat on the parent company.
NewTendermint was formed to concentrate on the core technology of Cosmos’ blockchain ecosystem. Ignite, however, continued to be focused on the development of blockchain-based products.
Peng has a background in front-end engineering and interaction design. He was able to focus on leading blockchain development throughout the company. His sudden departure, therefore, raises questions about Ignite and New Tendermint’s futures.
You can also find other information here reports Also, Ignite announced this week massive job cuts for more than half of its employees. The announcement came after Ignite’s CEO Peng Zhong disclosed on Friday that he would exit the company.
Ignite is now in jeopardy due to the departure of many other senior executives.
Ignite laid off some employees, but others offered to leave the company in exchange for severance payments.
Some may have left the company out of their own free will after the details of the new organizational structures between the entities were not clear for several weeks.
When Mr. Kwon returned to the company in May, he first made public the imminent job cuts. He stated that some workers would be eligible for severance packages upon his return.
Bear Market: Job cuts follow
Sources familiar with the matter revealed that Mr. Kwon had to reduce the company’s headcount in the wake of the current crypto crash.
There has been a lot FUD (fear uncertainty and doubt) within the crypto community. This is not just among investors, but also within companies. Crypto firms such as Crypto.com, BlockFi, Coinbase, and Gemini, among others, laid off hundreds of employees amid a meltdown in cryptocurrencies They also experienced a decline in their token values.
The crypto winter has triggered by the collapse of Terra/Luna’s ecosystem and put everyone in uncertainty. It is not known when it will end.
The current market conditions are blamed by most firms. After a new wave, multiple coins have seen their prices fall. Some crypto companies, including BlockFi, Three Arrows Capital and Celsius, were forced to suffer severe financial problems by the difficult market conditions.
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