Cryptocurrency

Siacoin creator Skynet to keep operating despite announced shutdown

Skynet Labs, the parent company of Siacoin (SC), announced Due to the failure to raise sufficient funds in our latest funding round, we plan to cease operations.

However, this decision will not affect the Skynet platform, which will continue to operate, and all users’ files will remain on the platform.

“Skynet must exist without Skynet Labs, without the many amazing people who have put their hearts and souls into building a brighter future for users and user data.”

Skynet is a decentralized app hosting and storage platform created to build a decentralized internet.

The company, formerly known as Nebulous, has raised $3 million in a 2020 funding round. The company is a pioneer in decentralized storage, but other projects such as Filecoin, Storj and Arweave have emerged with more funding.

Following the announcement, Skynet Labs will continue to operate for 12 weeks, during which the company will focus on ensuring a proper transition to the Skynet community.

The company’s CEO, David Vorick, said: Said The company has already laid off half of its workforce and plans to lay off the other half within the next month.

However, we will ensure that all necessary work is done before the company is closed. According to him, the goal is to “make the transition to the post-Skynet-Labs ecosystem as unobtrusive as possible.”

He added that if all goes according to plan, the company’s users won’t notice the change.

Meanwhile, the CEO blames the company’s closure for making it harder to focus on multiple things at once and develop a solid product.

Furthermore, he said that despite being a solid technology, Skynet has never been adopted in the crypto space compared to competitors such as Arweave (AR) and IPFS.

“We built a platform that had millions of monthly active users, but those users were largely outside of cryptocurrency and could not immediately contribute to the fundraising narrative.”

He also admitted that the team grew too quickly based on bets that the user base would translate into more money.

Nonetheless, several Skynet Labs team members continue to work on and support the project. The Sia Foundation and Skynet ecosystem will continue to be fully functional.

Posted In: Bankruptcy, Bear Market

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