Electric Coin Company reported losses in the first quarter of 2019

Electric Coin Company (ECC), supporting the development of the Zcash cryptocurrency, said the firm managed to avoid layoffs despite financial losses in the first quarter of 2019.

According to the report, in the first quarter of this year, the company faced a monthly average deficit of 30%. ECC earned $ 449,000 a month, and company expenses averaged $ 635,000.

In a July statement, EEC CEO and co-founder of Zcash, Zooko Wilcox, said the company successfully survived the bear market, during which many projects reduced staff or stopped working altogether.

Today, miners receive 80% of the remuneration for mining the block, and the rest is distributed as the “Founders’ Rewards”. With an average price of $ 55 per coin, in the first quarter ESS earned $ 336,900 per month. At the same time, the company’s expenses amounted to $ 525,000, and another $ 110,000 per month was allocated to employee salaries.

Due to the bear market, ECC has cut costs in many areas, such as PR, brand protection and development. The company also asked Founders’ Award recipients to redistribute funds to ECC in June.

The report was published a month after Wilcox’s open letter to the Zcash community. The letter says that the development fund will be exhausted in October 2020, so Wilcox called on the community to create a new development fund for the company.

In June, it became known that ECC was planning to upgrade the Zcash network to simplify the use of ZEC for payments and transfers.