The last few days have been very turbulent and challenging for the Paycer community as well as the team. Therefore we give an update about the current status and explain some decisions in more detail.
When we started to work severely on the Paycer project in early 2021, the world was a different place than it is today. Cryptocurrency prices knew only one direction, which was up. Covid was still a problem but not as serious as in 2020. DeFi was just on the rise and it was not yet clear that NFTs would be such a success. And we the Paycer team were eager and energized to bring DeFi and its benefits to retail customers.
The current reality in which we live unfortunately no longer looks as good as the time back then. We have a big war in the middle of Europe that could spread to other countries as well. We have an energy crisis. In Germany, for example, electricity and gas costs have risen to an extent that would have been considered impossible before. People first want to see how they can get through the winter before other things are important.
With regard to the crypto market, we can say that the market has actually been in a downtrend since our token launch in January 2022, except for short breaks. In the DeFi area, there were also some events with Celsius Network and Terra Luna that sent shockwaves into the market. With regard to the German market, NURI, a company offering banking and crypto with which we are often compared, has just filed for bankruptcy.
In these current circumstances, we are currently trying to find investors who would like to acquire shares in Paycer. Further capital will be necessary as the launch of our Paycer app will result in additional relatively high monthly costs for the company. On the other hand, the launch of the app will of course also mean a lot of new customers and users, but of also sales.
Since it is not that easy to find investors in the current mood and situation, we have taken a step back and looked at the current status of the company from the outside. We have come to the conclusion that we need to make some drastic changes and that we need to do it fast. Our goal was to reduce the burn rate of the company.
We already knew that the largest item was personnel costs. But your own team and employees are naturally like a family and it’s hard to separate from them. For this reason, we probably did not make this decision at the right time, but a little late. Which made it relatively spontaneous for everyone.
We have now taken this step and separated from some team members. Whereby this process was completed with most in a positive way. Unfortunately, some team members found out about it in other ways before we were able to talk to them. And there were also some PCR sales as a kind of defiance reaction. But at the end of the day, we are just humans and sometimes act very emotionally. In addition some of the team members had invested larger amounts in the token themselves.
Another important part of our action plan was to go personally to our banking partner with the founders and talk about some important matters. Such as how flexible our partner is on the launch date of the app and other aspects, and if there is room for maneuver there. This is important for us to get through the current winter and crypto winter.
But it’s not all down and challenging. After taking these hard steps, we see Paycer in a better position. Besides, it’s always better to act than to just stand on the sidelines and eventually not be able to react anymore.
Looking back on the last months we have achieved a lot and made progress in the development of our app but also in the NFT topic and can give some updates here. Our banking partner also thinks the features we are working on are very cool and unique and can’t wait to launch them with us.
Some impressions of the Paycer app, of which there is already a working prototype, and some updates on the NFT.
We will continue to work on the Paycer app and the NFT with a temporarily reduced team size. There is no shadow without light.
Your Paycer Team