Sirin Labs Fails The Blockchain Phone Project, Fires 25% Of Its Staff

Sirin Labs, the company behind the Finney blockchain phone is laying off more than 25 percent of its team as the crypto winter stroke back. In the latest cryptocurrency news, we see that the crypto winter reduced the sales of its device and it was reportedly ‘’less than expected.’’

The market could see some gains soon since ethereum, bitcoin and other altcoins made strong gains in April. However, the bear market is still leaving its marks after it strongly hit the popular Sirin Labs startup.

The Sirin Labs company was founded by Moshe Hogeg who was an Israeli businessman. He announced the $1,000 smartphone all the way back in 2018 after claiming that it would be the first blockchain-based smartphone having a cold storage wallet installed.

The goal was to allow people to use the phone’s internal exchange and to swap tokens without changing tokens from wallet to exchange and in reverse. However, the hype didn’t contribute to boosting the sales of the phone and according to Globes reports, Sirin Labs had to make employee cuts.

Sadly enough, Sirin Labs was also forced to deny the reports in the best cryptocurrency news sites that it failed to pay the salaries of its employees. Hogeg, on the other hand, faces a lot of legal actions. For example, in California, there is a $50-million lawsuit against him over defrauding investors for hundreds of millions of dollars.

During the final days of the bull market, Sirin Labs raised almost $160 million in an initial coin offering. The value of the company’s token plunged by nearly 100 percent since its last peak in 2018. Its market cap is now standing at $16.8 million from the high $344 million and has a hard time turning a significant daily volume on the market.

The company seems to have a hard time learning the lesson when it comes to launching unnecessary, overpriced devices. Back in 2016, Sirin Labs launched another smartphone which cost a stunning $16,000 and even had a launch party for it with Tom Hardy and Leonardo DiCaprio.

Sirin Labs keeps on misjudging the market and receives a lot of backlash from the crypto community.

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