‘The Block’ Employees Called out for Lack of Exposure to Cryptocurrency Trading

However, many were quick to point out that nine employees did not own any cryptocurrency, while the other eight only had investments in Bitcoin (BTC) and Ethereum (ETH). The list has drawn criticism from many cryptocurrency users on Twitter, including trader Bob Loukas, who noted that the team has little exposure to the cryptocurrency market while offering a $1,000 tier subscription service. https://twitter.com/mdudas/status/1171487962980241418

Majority of The Block’s Team Have No Cryptocurrency Investments

The list also reveals that the investment threshold is set at $2,000. Any figure below that would not count as an investment. Dudas had said that the list was published to show his team is fully transparent and does not report with any bias. According to the list, Mike Dudas himself has 100 percent of his cryptocurrency investments in Bitcoin.

Canned response. I do wish them all the best, but you'll need a lot more than a rising price to keep a $1k newsletter afloat…let alone cash big.

Not bagging on them, but if folks reporting on crypto have zero exposure, they don't get it.

— Bob Loukas (@BobLoukas) September 11, 2019

Dudas’ post, however, has since been met with criticism. Many are questioning the integrity of the Block’s team and their capability to cover the cryptocurrency sector. Dudas, in response, clarified that everyone on the team earns a cash salary and owns employee options in The Block, adding that the fortune of the company is heavily tied to the cryptocurrency market. He also said that everyone on the team owns or has owned coins to test products and projects. The page also notes that Dudas has put $5,000 into AMUN, a cryptocurrency-related company launched by his friend, Hany Rashwan.

The Block in a Financial Crunch

Earlier this year on April 22, 2019, The Block was reportedly looking to raise $1.5 million from private investors. The publication notably lost over $747,000 in 2018, with revenue from ads and subscribers apparently not bringing in enough income — though, it should be noted that many startups are not profitable in their first year. The Block offers a subscription service called Genesis for $85/month alongside The Block Daily, which costs $19/month.

Just curious why would you want to exclude that information anyway?Aren't real $/time going into bot efforts?

Now you can easily and visually see the impact of such coordinated efforts by charting where social activity is outpacing other fundamentals.

— Pete Rizzo (@pete_rizzo_) November 15, 2018

Some of the firms that have invested in The Block include VC Pantera, Bloomberg Beta, and Greycroft. In its investment pitch, The Block positioned itself as a high value and dedicated publication. It also refers to the CoinDesk as a low-value publication. Notably, Mike Dudas had a Twitter spat with Pete Rizzo, editor-in-chief at CoinDesk. In your opinion, should The Block employees have more exposure to the cryptocurrency market? Let us know your thoughts in the comments below.

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Images are courtesy of Twitter, Shutterstock. Editor’s Note: The information and pricing model of The Block’s subscription services have been updated.