A major restructuring process is underway at ConsenSys, an Ethereum production studio led by the cryptocurrency co-founder Joseph Lubin. The company’s transition into the so-called “ConsenSys 2.0” will be an uphill battle, anonymous sources familiar with the company’s inner workings told CoinDesk.
According to the sources, Lubin’s plans to shift the company’s focus onto outside partners and investors may not go as planned due to the “unusual way ConsenSys structured its investments,” which insisted on the studio holding at least 50 per cent of the equity for each of its “spokes.” The strategy had reportedly dissuaded some investors from funding ConsenSys’ projects. “A ton of funds and individuals were uncomfortable having Joe on the cap table at all, let alone [with a] controlling stake,” said one of CoinDesk’s sources, a former spoke advisor.
Potential investor trouble is not the only dark cloud looming over ConsenSys—the studio’s staff is reportedly feeling very insecure about their jobs following the recent layoffs, the anonymous employee told CoinDesk, adding that he predicts the studio to eventually end up at “roughly one-sixth of its current size.”