Input Output Global’s (IOG) co-founder Charles Hoskinson called out CoinDesk for reporting the platform’s restructuring process as just a layoff story, as he tweeted that IOG has been moving towards a venture studio model for 18 months in a public way.
Hoskinson then revealed plans for the platform revamping into a venture studio model with a smaller core business model.
Reading this https://t.co/4Vxi9HcIP7 seriously? We’ve been moving towards a venture studio model for 18 months in a pretty public way.
Cardano is a platform and the point is to build stuff on top of it. Thus IOG has been spinning out companies like Midnight, Lace, and Prism.…
— Charles Hoskinson (@IOHK_Charles) June 12, 2023
According to the co-founder of IOG, the company is undergoing a restructuring process, transforming into a venture studio with a smaller core and multiple spin-offs. The program has involved eliminating redundant or irrelevant groups to align with the new business model.
IOG is set to spin out Prism, Midnight, and Lace as separate companies. Prism will specialize in identity framework, Midnight will focus on data privacy and zero knowledge technologies, while Lace will concentrate on wallet technology. Hoskinson stated:
Cardano is a platform and the point is to build stuff on top of it. Thus IOG has been spinning out companies like Midnight, Lace, and Prism.
Hoskinson also highlighted that each spun-out company will eventually have its own CEOs, staff, and investors, operating independently under the parent company. Hoskinson mentioned that the reduction in staff primarily occurred at the executive level within IOG.
IOG has already appointed CEOs for Midnight and RealFi, who have subsequently hired additional personnel.
Currently, Cardano’s native token ADA is facing scrutiny from the U.S. Securities and Exchange Commission (SEC) as the latter categorized ADA as a security in its lawsuit against cryptocurrency exchanges Binance and Coinbase.
IOG firmly dismissed the allegations, stating that ADA is not a security under U.S. securities laws. IOG advocated for the establishment of responsible legislation through collaborative efforts between industries and regulators.