“A Painful Ride”: Polygon Founder Puts 2023 in Review

Sandeep Nailwal sums up his thoughts on Polygon’s 2023 amid struggles faced by Polygon Labs and the MATIC token.

Sandeep Naiwal in the clouds with a Polygon MATIC coin.
Created by Kornelija Poderskytė from DailyCoin
  • Polygon co-founder Sandeep Nailwal has contended that 2023 has been rough for the project.
  • The founder nonetheless implies that the project will make a comeback.
  • Nailwal’s sentiments followed a year in which Polygon Labs and MATIC struggled.

2023 has seen excitement return to the crypto space after a tumultuous 2022. However, not all projects have been able to garner significant momentum from the fresh tailwinds. Polygon co-founder Sandeep Nailwal recently noted that this has been the case for the popular Ethereum scaling project.

Nailwal Puts Polygon’s 2023 in Review

In an X post on Sunday, December 24, Nailwal contended that Polygon was again the “underdog” after “a painful ride” in 2023. 

Embracing the label, however, the Polygon Labs executive chairman implied that the only way left for the prominent Ethereum scaling project to go was up. “It feels incredibly liberating to be the underdog again,” he asserted.

Nailwal’s comments depart from the largely positive view that most major crypto projects and communities undoubtedly hold of 2023. They come amidst layoffs carried out early in the year and the continued price struggles of MATIC, the native token of the Polygon Proof-of-Stake (PoS) chain.

A Slow Year for Polygon (MATIC)?

In February 2023, Polygon Labs, the startup behind the Polygon ecosystem, announced that it was cutting 20% of its staff, as several major crypto firms engaged in layoffs on the back of a chilly crypto winter that had led to a plunge in the value of most crypto assets.

In an attempt to dispel concerns, Nailwal had argued the project still boasted a healthy war chest of $250 million in cash and 1.9 billion MATIC. However, this disclosure only sparked further questions, as the startup had raised $450 million in 2022, suggesting it had burned through $200 million in just one year. This inference led many to speculate that Polygon Labs would be forced to dip into its MATIC reserves to stay afloat.

Amid the uncertainty and disinterest, MATIC’s price has remained largely muted while most other major crypto assets have recorded upwards of 50% gains year-to-date (YTD). At the time of writing, MATIC is trading just above $0.86, just about 13% higher than its opening price of about $0.76 on January 1.

On the Flipside 

Why This Matters 

Polygon co-founder Sandeep Nailwal’s statements highlight the uncertainty that has plagued the project in 2023 while also hinting at the determination to make a comeback.

Read this for more on Polygon:
Here’s How Starbucks Is Employing Polygon NFTs in Green Push

Stay up to date with the latest on the Ethereum Dencun upgrade:
ETH Devs Set Tentative Dencun Launch Dates for Key Testnets

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.