Bitcoin’s leading global merchant processor, BitPay, has reportedly begun massive layoffs to cut costs at their Atlanta headquarters. This, in conjunction with this week’s change in “Free Plan” pricing terms point to a situation of financial peril for one of Bitcoin’s most stalwart corporations.
Times are tough at BitPay
You could trace issues all the way back to the BitPay-funded college football “Bitcoin Bowl” last December. The financial outlay was considerable and the return on investment negligible. Boosting the mainstream image of Bitcoin was noble, but it was a three-year annual commitment signed through December of 2016. In the aftermath of the first year of spending on this venture, nine employees were laid off weeks later.
Earlier this week, reports of a change in the “Free Plan” surfaced, which severely cut service from the original terms. Originally, the starter plan for merchants was an unlimited amount of transactions.
“Today BitPay is proud to announce a new free plan which offers basic payment processing free-of-charge, forever,” BitPay Co-Founder and Executive Chairman Tony Gallippi said at the time on the corporate blog in July 2014.
It seems that forever only lasts about fourteen months, current customers notwithstanding, as the terms