Shalini Nagarajan

<div id="highlights-block_62c2c9c3b8ded" class="highlights">
 <ul>
 <li>Two other top executives have joined CEO Peng Zhong in leaving the Cosmos developer, four months after it rebranded from “Tendermint”</li>
 <li>Hints of layoffs at Ignite were first dropped in May, when former CEO Jae Kwon returned</li>
 </ul>
 
</div>



The grim wave of industry layoffs continues to wash across the crypto landscape, with Cosmos blockchain developer Ignite (formerly Tendermint) the latest to downsize.



Peng Zhong, CEO of Ignite, <a href="https://twitter.com/zcpeng/status/1542891986188902404" target="_blank" rel="noreferrer noopener">said</a> Friday that he’s formally left the firm. The company’s headcount has been reduced by over 50%, <a href="https://www.coindesk.com/business/2022/07/01/cosmos-builder-ignite-cuts-headcount-by-more-than-50-ex-employees-say/" target="_blank" rel="noreferrer noopener">CoinDesk</a> reported on Saturday, citing two former employees and a source close to the matter.&nbsp;



While some were laid off, others left voluntarily in exchange for severance packages, the report added.



According to an update in February, Ignite’s headcount stood at 120. After its recent reported layoffs, nearly 60 people are estimated to have left the company.



CoinDesk said two other unnamed top executives joined Zhong in leaving Ignite. Their exits come four months after the company <a href="https://www.businesswire.com/news/home/20220222005880/en/Tendermint-Founder-of-Cosmos-Ecosystem-Rebrands-to-%E2%80%9CIgnite%E2%80%9D" target="_blank" rel="noreferrer noopener">rebranded</a> from Tendermint as part of a reorganizational shake-up.



Launched in 2014 by co-founders Jae Kwon and Ethan Buchman, the company is best known for its role in founding blockchain protocol Cosmos. 



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Today is my last day at Ignite. Thank you for the camaraderie we shared as we built out this ecosystem. It&#39;s been an honor to be a part of this team and this community. I will miss you. 💙&mdash; Peng Zhong (@zcpeng) <a href="https://twitter.com/zcpeng/status/1542891986188902404?ref_src=twsrc%5Etfw">July 1, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Kwon left his role as CEO in 2020, amid concerns about wielding <a href="https://www.coindesk.com/business/2020/02/04/what-is-going-on-with-jae-kwon-and-cosmos/" target="_blank" rel="noreferrer noopener">too much authority</a>, but he returned in May when the firm <a href="https://medium.com/@tendermint/ignite-becomes-independent-entity-alongside-newtendermint-6ed40672a22b" target="_blank" rel="noreferrer noopener">split into two</a> separate entities — Ignite and NewTendermint.&nbsp;



A source told CoinDesk the layoffs were first hinted at during Kwon’s return in May. They said details about the new organizational structure between Ignite and NewTendermint were obscure for several weeks.&nbsp;



Employees were reportedly given the option to apply to work at NewTendermint. Those who didn’t were told they would be invited to join a revamped version of Ignite — a venture called Cosmos Cash, echoing the Bitcoin hard fork that birthed Bitcoin Cash in 2017. 



Kwon reportedly said not all employees would make the cut.



<h3 class="wp-block-heading">Ignite weighed by Cosmos price collapse</h3>



The downturn in cryptocurrency markets is said to have worsened Kwon’s initial projected headcount reduction. 



Cosmos&#8217; native token ATOM,is down 73% so far this year, and has fallen 13% in the last month alone to $8.01 on Monday as of 5:00 am ET, data from <a href="https://www.blockworksresearch.com/assets/atom/" target="_blank" rel="noreferrer noopener">Blockworks Research</a> shows.



Zhong didn’t disclose who will succeed him as CEO, spurring concern that Ignite’s leadership may be hanging in the balance. Ignite and Kwon didn’t immediately return Blockworks’ request for comment.&nbsp;



Ignite joins a raft of <a href="https://cms.blockworks.co/crypto-industry-layoffs-may-have-unintended-consequences/" target="_blank" rel="noreferrer noopener">other high-profile names</a> laying off employees, including <a href="https://cms.blockworks.co/celsius-lays-off-150-employees-as-withdrawal-freeze-drags-report/" target="_blank" rel="noreferrer noopener">Celsius</a>, BlockFi, <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a>, <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">Gemini</a>, <a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">Crypto.com</a> and <a href="https://cms.blockworks.co/coinbase-backed-vauld-cuts-workforce-by-30-seeks-to-halve-exec-pay/" target="_blank" rel="noreferrer noopener">Vauld</a>.



Cryptocurrency markets have shed 60% of their collective values in the year to date, with bellwether digital asset bitcoin falling from $46,300 to below $20,000.



“The narrative remains bearish with anything possible in the [bitcoin price range from] $20,000 to $10,000,” Digital Asset Investment Management analysts wrote in a <a href="https://daimio.substack.com/p/daim-issue-11-no-pain-no-gain" target="_blank" rel="noreferrer noopener">recent report</a>. “But max pain in bitcoin generally means max opportunity. There will be a time when the negative news runs out.”



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Cosmos Developer Ignite Sees Staff Exodus and Layoffs as CEO Exits

Macauley Peterson

<div id="highlights-block_62558595a7dbd" class="highlights">
 <ul>
 <li>Ignite Accelerator will focus on the multichain ecosystem, part of the core ethos of Cosmos</li>
 <li>Initial strategic partners are Alameda Research, KuCoin Ventures, OKX, Blockdream Ventures, Hashkey Capital, Chorus One, Figment, Chainlayer, Strangelove Ventures, Forbole, Everstake and Galileo</li>
 </ul>
 
</div>



A new fund with an initial commitment of $150 million aims to accelerate the time to market of early-stage blockchain interoperability projects.&nbsp;



The funding comes on the heels of the <a href="https://blog.cosmos.network/the-cosmos-hub-theta-upgrade-is-coming-3840bcd4259f" target="_blank" rel="noreferrer noopener">Theta upgrade</a> to the Cosmos Hub, the first of two major updates to enable interchain accounts, which is a key component of Ignite’s vision for multichain interoperability.



The fund, called Ignite Accelerator, “ensures that individuals who would like to be part of building an open and decentralized global future are set up for success,” Ignite CEO Peng Zhong said in a statement.



Ignite’s forerunner, Tendermint Inc., founded the Cosmos blockchain and still plays an active role in the now-community-led ecosystem.&nbsp;



After the next scheduled upgrade, <a href="https://hub.cosmos.network/main/roadmap/cosmos-hub-roadmap-2.0.html#v8-rho-upgrade-expected-q2-2022" target="_blank" rel="noreferrer noopener">Rho</a>, the Cosmos Hub will be able to manage accounts across multiple blockchains. That opens up the design space for Web3 applications for the first time. For instance, custody providers will be able to service accounts on other <a href="https://cms.blockworks.co/tag/ibc/" target="_blank" rel="noreferrer noopener">IBC-connected</a> blockchains through a common interface on the Cosmos Hub.



The Ignite Accelerator aims to support up to 20 projects per year with semiannual cohorts of six months, the first slated for June. Successful applicants stand to gain access to capital, but also “hands-on guidance in key areas like blockchain development, marketing, [public relations] and tokenomics,” the statement said.



This practical guidance is a part of the package pitched by the project’s backers — industry heavyweights and experienced validators of Tendermint-based blockchains — Alameda Research, KuCoin Ventures, OKX Blockdream Ventures, Hashkey Capital, Chorus One, Figment, Chainlayer, Strangelove Ventures, Forbole, Everstake and Galileo.



“As best-in-class investors, they share our vision and hold valuable experience in partnering closely with entrepreneurs and developers,” Sane Lebrun, Ignite’s chief growth officer, said.



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