That's actually a pretty bad and scary news. I have never heard any legit blockchain project laying off 70% of their project, especially when there is so much to develop. Ned says the company doesn't have enough money to even handle nodes. That sounds like they are in deep water now. SMT which was supposed to be their main booster for "to the moon" and adoption has also been delayed for who knows how long. But the thing that surprises me is that how they didn't make the most of during the bull run in Q1-Q2 this year.
Let's see how this one goes.
I bet a lot of cryptos are in a similar position but they're less open about it. Steemit Inc. isn't Steem. Ned doesn't fill me with confidence but there's a huge community using the Steem blockchain and I think they will make sure that the problems with Steemit Inc. wont harm Steem. If Steemit Inc. just concentrate on SMT's, it might not take that long, as a lot of the work is already done. One good thing is that they wont have to keep selling Steem to pay all those staff. I'm sure that's been one of the reasons why Steem has fallen further than some coins.