Cryptocurrencies performed well on Wednesday, with Bitcoin steady despite the new tariff wave.
Eigen Labs’ native token has turned bullish amidst the optimism, possibly driven by the latest ecosystem announcement.
According to Blockworks, EigenLayer’s team has reduced its workforce by laying off roughly 25% of the staff, 29 employees.
The move is part of a strategic plan to streamline operations and ensure laser focus on the new developer platform, EigenCloud.
Meanwhile, this comes after the crypto firm launched EigenCloud in mid-June to explore on- and off-chain verification, a sector gaining increased traction as blockchain integrates with AI.
Eigen Labs CEO Sreeram Kannan commented on the decision, stating:
While today’s reorganisation is painful, I’m extremely optimistic about our future. Demand for verifiable computing is growing as developers build software for the AI era, and EigenCloud is uniquely positioned to service this market need with a cloud platform backed by billions in stake and thousands of operators around the world.
While financial challenges often trigger substantial layoffs, Eigen Labs emphasizes it’s not the case.
A strategic pivot and not a financial calamity
Eigen’s latest layoffs are part of the company’s long-term strategy and not a response to a financial crisis.
The company boasts monetary stability.
Venture capital firm A16z supported the project with $70 million during the EigenCloud launch, adding to its previous investments.
Eigen Labs has raised $220 million, including the $50 million Series A funding in 2023
Kannan highlighted that they are aiming to reorganize resources around EigenCloud and streamline the team to fuel long-term growth.
While the decision could be painful, Kannan trusts it was necessary.
He expressed gratitude to the departing team, who have been key in building Eigen Lab’s early stages.
The firm will support the impacted employees with accelerated token vesting and a 3-month base salary.
Also, Eigen Labs promised career support to help ex-staff gain stability.
Understanding EigenCloud: why does it matter?
EigenCloud is a developer-centric platform offering verifiable compute tools to support advanced decentralized applications (dApps).
It enables developers to create software with enhanced transparency and trust, elements gaining attention as blockchain and AI blend.
Distinguishing machine-generated and real things can be challenging as artificial intelligence gains rapid popularity.
EigenCloud aims to meet the growing demand for verifiable computing through its global network of operators and stakers.
EIGEN price outlook
The native token flashed bullish sentiment amidst the layoff news.
EIGEN trades at $1.15 after gaining more than 4% in the past 24 hours.
Its daily trading volume has increased by over 60%, signaling revived interest in the altcoin.
Short-term technical indicators also suggest buyer resurgence, positioning EIGEN for extended gains.
Meanwhile, broad market sentiment will likely influence its trajectory in the coming sessions.
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