Coinbase, one of the top crypto companies globally, slashed its staff by 18% earlier this year, at the peak of the bear market. Blockchain.com cut its staff by 25% as well. So does that mean the hiring trend in the crypto industry reversed amidst a downturn? Did the bear market really stop crypto firms from hiring new talent?
Golden Age For Crypto Hiring
The blockchain industry has emerged as a major employer globally over the past few years. Thousands of developers, community managers, and innovators have jumped on the crypto bandwagon over the past few years for better opportunities. 2015 to 2019 was the golden period for job seekers in crypto. Jobs in the industry soared 1,457% during the period, with 2017 being the peak year. Skyrocketing adoption of cryptocurrencies helped emerging startups boom, and aspirational founders rewarded the workforce with lucrative compensation packages.
Source: Indeed/Venture Beat
Skill Gap As A Roadblock For Crypto Firms Hiring More Talent
A key reason behind comparatively higher compensation in crypto is the skill gap that still exists. Considering that there are 18,000+ active crypto startups, the demand for skilled talent is way higher than workforce availability. Lack of education about the industry is the primary reason behind this. Consequently, crypto companies race among themselves to catch the available talent.
2021 was one of the most rewarding years for stakeholders. Fundamentally strong tokens like $SOL provided 100X to 1000X in returns. Companies expanded operations, and one of the biggest beneficiaries of these expansions were job seekers. After a brief lull in 2020, companies went on a hiring spree in late 2020 and 2021. However, a massive downturn in 2022, followed by a prolonged bear market, gave founders a reality check. Unrealistic expectations took the backseat as founders prioritized cashflow management to sustain. When bitcoin mining company Compass Mining laid off 15% of its workforce in July 2022, they admitted that they “grew too quickly.” While some companies seem to be blinded by the unrealistic growth in 2021, 2022 gave them a reality check.
Ground Reality: Have Crypto Firms Really Stopped Hiring Fresh Talent?
To begin with, layoffs do not prove that crypto firms have stopped hiring fresh talent. Why? Because crypto jobs jumped 1,500% between late 2019 and early 2022. While the share of crypto jobs in overall technology roles was 41.22% in 2019-20, it increased to 67.48% in 2021-22. India, one of the biggest markets for crypto, saw an 804% rise in crypto jobs in 2022. What does that imply? Skillful talent transitioned from one company to another.
Clayton Pullum, co-founder, and director of Satoshi Solutions, said while speaking to CoinTelegraph, that crypto companies were “hiring like crazy” during the previous bull runs, offering developers $500,000 to $700,000 in salaries. However, the recent scenario has forced them to put more emphasis on strategy. New-age entrepreneurs must understand that hiring aggressively while expecting unreal growth can hurt their long-term plans. “Those who were more secure in their funding had a more strategic plan in place. That doesn’t mean hiring stops. It’s just become more sensible. They’ve slowed it down a little bit. And, to be honest, I think it’s really positive going forward,” Pullum said.
What’s In For Job Seekers?
What’s noteworthy about recent hiring trends is the increased diversity of job roles. From developers to community managers, and designers, crypto firms continue to hire and employ a vast range of talent. Certain sectors like Web3 are still evolving, with startups slowly realizing their full potential. Blockchain is set to define the next iteration of global finance as Web3 transforms the internet. Metaverse and NFT are redefining entertainment while DLT continues to enhance trust and security in the data processing. Job posting platforms like Linkedin and Indeed are flooded with requirements for skillful talent. All you need is a proper understanding of the industry. New opportunities wait for you in a really diverse industry. Educating yourself is the only way to make the most of it.