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Cryptocurrencies traded in the red on Tuesday as Bitcoin plunged below the $110K psychological level.
While the global crypto market cap lost 3.88% in the past day, Eclipse came under immense selling pressure.
The altcoin lost more than 15% over the past 24 hours after the blockchain company announced key changes to its workforce and leadership.
Eclipse Labs announced a new CEO and that it had trimmed its team by 65%.
It comes as the company adopts a new direction after its token generation event (TGE). The X post read:
As part of this transition, OXSydney will assume the role of CEO following the voluntary departure of OXLitquidity. To align resources with our updated strategy, we have reduced our workforce by 65%. This difficult decision was made to give Eclipse the flexibility needed to execute on its next chapter.
The announcement came as the crypto space experienced overwhelming selling pressure.
Bearish sentiments saw ES extend its daily losses by 15.65% from $0.1834 intraday peak to $0.1547.
That reflected investor concerns amidst Eclipseās restructuring.
Meanwhile, the changes follow the Eclipse TGE (token generation event) and highlight Eclipseās intent to reposition itself, focusing on enriching its L2 infrastructure with a ābreakout application.ā
The team said:
Over the past months, weāve explored opportunities for application development on the network. Going forward, weāll prioritize building a breakout application on top of Eclipseās L2 infrastructure.
Vision and leadership are paramount to remain competitive in the L2 sector.
Eclipseās move to restructure its team and appoint a new chief reflects the opportunities and challenges the ES project faces.
Eclipse Labs highlighted that the new CEO replaces the previous OxLitquidity, who voluntarily departed.
However, the new changes aim at aligning the company with a new trajectory post-TGE.
The team emphasized prioritizing their core mission of bringing web2 apps on-chain.
While leadership shake-ups tend to dominate headlines, Eclipseās 65% workforce reduction raised eyebrows.
Such drastic and massive cuts often signal internal challenges, shifting priorities among the team, and financial constraints.
While the move could streamline operations with a sharper focus, the layoffās magnitude has stirred speculations about Eclipseās stability.
The native token reflected community worries with notable dips on its daily chart.
ES lost over 15% to intraday lows of $0.1547 before slight recoveries.
The alt changes hands at $0.1598, with significant selling pressure hinting at further dips in the short term.
Broad market declines contribute to ESās weakness.
However, the team emphasized that the projectās long-term mission remained intact.
Eclipse Labs promises to leverage its streamlined resources and new leadership to build an advanced application that showcases the complete capabilities of its Layer 2 infrastructure.
The post Eclipse (ES) dips 15% after 65% layoff and leadership shake-up appeared first on Invezz
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