CoinDesk to Slash Almost Half of Its Editorial Staff Amid Sale Negotiations 📰
CoinDesk, one of the leading crypto media outlets, is reportedly cutting down its workforce by 45%, affecting mostly its editorial team. The move comes as the company is in the final stages of selling itself to a group of investors led by crypto veterans Matthew Roszak and Peter Vessenes.
What is CoinDesk? 🤔
CoinDesk is a media company that covers the crypto industry for professionals and enthusiasts. It was founded in 2013 by Shakil Khan, an early investor in Spotify and BitPay. In 2016, it was acquired by Digital Currency Group (DCG), a venture capital firm that invests in and operates crypto-related businesses.
CoinDesk is best known for its news articles, podcasts, newsletters, research reports, and events, such as the annual Consensus conference. It also publishes the Bitcoin Price Index, a widely used reference for the price of bitcoin across various exchanges.
CoinDesk claims to have over 10 million monthly unique visitors and over 100,000 newsletter subscribers. It also boasts a large social media following, with over 1 million followers on Twitter and over 600,000 on Facebook.
Why is CoinDesk laying off staff? 😢
According to an internal memo obtained by TechCrunch, CoinDesk CEO Kevin Worth announced that the company will be having an all-hands meeting on August 16, 2023, to inform everyone that several roles, predominantly in the media team, were impacted by a reduction in force.
Worth wrote that this was a “required step to ensure a financially sound business moving forward and to set us on the path to close the deal to sell CoinDesk Inc.”
The memo did not specify the exact number of layoffs, but sources familiar with the matter told The Block that it would affect about 20 people, or 45% of the editorial staff. The sources also said that some senior editors and reporters were among those who received severance packages.
The layoffs come as CoinDesk is nearing a deal to be sold to a syndicate of investors for $125 million, according to a report by The Wall Street Journal in July. The report said that the investor group is led by Matthew Roszak, founder of Tally Capital and co-founder of Bloq Inc., and Peter Vessenes, founder of Capital6 and co-founder of Bitcoin Foundation.
Roszak and Vessenes are both prominent figures in the crypto space, with Roszak being one of the earliest investors in bitcoin and blockchain startups, and Vessenes being one of the original developers of the Bitcoin protocol.
The report also said that DCG, which owns CoinDesk along with other crypto subsidiaries such as Grayscale Investments, Genesis Global Capital, Foundry, and Luno, will retain a minority stake in CoinDesk after the sale.
What does this mean for the crypto media industry? 🚀
The crypto media industry is a fast-growing and competitive sector, with dozens of outlets vying for attention and revenue. Some of the major players include Cointelegraph, Decrypt, The Block, Coindesk’s rival CoinTelegraph, Decrypt, The Block, and Crypto Briefing.
The industry faces many challenges, such as maintaining editorial independence and integrity amid potential conflicts of interest from advertisers and investors, dealing with regulatory uncertainty and legal risks from covering sensitive topics, and coping with the volatility and unpredictability of the crypto market.
The industry also has to adapt to the changing preferences and behaviors of its audience, who are increasingly consuming content through social media platforms, podcasts, newsletters, video channels, and mobile apps.
The CoinDesk layoffs could signal a consolidation trend in the crypto media industry, as some outlets may struggle to survive or seek strategic partnerships or acquisitions. On the other hand, it could also create opportunities for new entrants or existing players to fill the gap left by CoinDesk’s reduced output and coverage.
The CoinDesk sale could also have implications for the future direction and vision of the company under its new owners. Will they maintain CoinDesk’s current editorial standards and policies? Will they expand or diversify CoinDesk’s product offerings and services? Will they leverage their network and influence to boost CoinDesk’s brand and reach?
These are some of the questions that may be on the minds of CoinDesk’s loyal readers and fans, as well as its competitors and peers.
What do you think? 💬
I want to hear from you. What are your thoughts on CoinDesk’s layoffs and sale? How do you think it will affect the crypto media industry? Which crypto media outlets do you follow and trust? Let me know in the comments below!
References 🔗
- CoinDesk to cut staffing ahead of potential sale | TechCrunch
- CoinDesk to slash workforce ahead of potential sale: Report | Glamsham
- FTX Whistleblower CoinDesk To Shrink Editorial Team As It Nears Sale ... | IBTimes
- Barry Silbert’s DCG Nears CoinDesk Sale to Roszak, Vessenes | Bloomberg
- The investor & operator of the crypto industry | DCG
- Digital Currency Group | Wikipedia
- Who is Digital Currency Group? | CoinGeek
- Digital Currency Group - Crunchbase Investor Profile & Investments | Crunchbase
- Media industry | CryptoTotem
- 7 Blockchain Media and Social Media Companies to Know | BuiltIn
- Exclusive: Crypto media firm Blockworks raises $12M at $135M valuation | Axios
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