Elixir token team announced that they are stopping development of elix token related products. The team released an official announcement in their telegram channel on which they stated:

“Hi all, apologies for the delay in response. We’ve been having a lot of discussion about ELIX for the past few weeks and have been trying to choose the smartest path. Unfortunately, the project doesn’t have funds to further full time development.

Most startups stay side projects early on, but we feel that this model wouldn’t do the project justice. That’s why it’s been a particularly hard decision to make. We feel particularly with the incorporation of the token, running it is as a side project wouldn’t be fair to the token community. We would rather members of the crypto community be focused on projects that have resources for full time development.

Without the clear ability to commit to full time development, we don’t feel it’s a good path for us at this time. We feel that we’d be doing a less than quality job as startup founders if we only partially focus on the project.

We will likely keep the pages up and the community pages up, and should we have more time and want to develop them, we may do so. But we want to be clear that we don’t have the funding to devote time to them right now that we wish we could have.

While this might be disheartening, I think we’ve learned more than we could have in the past year and a half building our own products than we ever could have at a large company, which does make us optimistic about the work we’ve done.”

This isn’t surprising considering the current state of the market condition. Elixir tried to do something for which they didn’t have the funds. I think that decision was poor. They shouldn’t have relied on crypto market speculation for funding.

They should have had thought out about alternative funding if the market turned like this. Steem Inc (the main development team behind Steem blockchain) made the same mistake as they didn’t expect a bear market like this either. So, they had to lay off over 70% of the employees. Due to low funding, Steem Inc stopped development on smart media tokens and started working on performance optimization.

Many witnesses requested the Steem Inc team to work on performance optimization but they didn’t listen. There is a whole sub community of Steemians who are against many of the decisions made by Steem Inc. They criticize them because of Steem Inc’s lack of foresight.

In the end, the investors are the ones that got affected the most. This is why it is extremely important to enquire about projects you want to invest in. Or else, something like what happened to Elix token holders might happen to you. Thanks for reading. If you disagree with any of my points, consider leaving a comment explaining why. 

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