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The Algorand Foundation has laid off 25% of its staff, citing the global crisis and the downturn in the crypto market. The cut came just one day after one of the best running events in the project, which made a big difference that the community didn’t miss.
The Layoffs
The foundation confirmed this decision on the X, describing it as very tough but necessary to align the equipment with long-term needs. The statement emphasized that the affected staff had been very helpful and the Foundation was committed to helping them with the transition.
The board said it believes the reorganized team represents a stable foundation for achieving Algorand’s strategic, business, and environmental goals.
“We believe that we now have a strong connection between the Algorand Foundation’s products and the protocol’s functionality, technology, and environmental requirements.
“These employees have been very supportive of the environment and the Foundation, and this was a very difficult decision. We are very grateful to them, and, of course, we are committed to supporting them in this transition,” he said.
The SEC Development That Came First
A day before the layoff, the SEC and CFTC issued their landmark directive to classify several crypto assets as digital assets instead of securities. ALGO was included in this group.
Some members of the community initially questioned whether ALGO’s appearance in footnotes rather than guidelines diminished its importance. The Algorand Foundation pushed back against the study directly.
The installation of the subtitles was not going down. The SEC used futures-related symbols as examples in the main text but it is clear that futures correlation is not a test of assets. ALGO was specifically named to demonstrate that a token can be a digital asset without any connection to futures markets.
What Does This Mean?
ALGO fell on the same day as the broader market but has cleaner orders than it did 48 hours ago. The layoffs reflect financial stress from a tough market. The SEC’s guidance shows real progress in regulation.
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