Who’s Firing – and Still Hiring – During Bitcoin Bear Market

Cryptocurrencies and the stock market were hammered by deteriorating economic conditions so far this year, between a potentially imminent recession, sky-high inflation and a Federal Reserve that is about to cool the economy further by raising interest rates.

The worsening outlook for the economy has prompted companies to reduce hiring or scale back operations in an attempt to better manage costs and protect profits. In early June, Tesla CEO Elon Musk said he had a “super bad feeling” about the economy in an email to the company’s executives and claimed that 10% of the company’s salaried employees would need to lose their jobs. according to the report. communicating from Reuters.

The sense of pessimism has led to similar cuts among companies in the cryptocurrency world, but not all, with some currently hiring and feasting amid the carnage.

Who is shooting?

Twins

Gemini Trust Co., owned by billionaires Tyler and Cameron Winklevoss, was one of the first cryptocurrency titans to announce that it was laying off employees. On June 2, the company said in a blog post would be cutting approximately 10% of its workers, citing “turbulent market conditions that are likely to persist for some time”.

Coinbase

Coinbase, in turn, announced a hiring freeze that terminated the job offers of employees with whom it had already made deals. the company later declare the need to lay off 1,100 of its workers and prepare for a “prolonged” crypto winter, reducing its workforce by 18% because it “over-hired” during the previous rally in cryptocurrency markets.

BlockFi

Zac Prince, CEO of BlockFi declared the company that offers its customers high-yield cryptographic accounts would be “reducing [its] headcount by around 20%” to around 600 as of June 13, and said the “decision was driven by market conditions that had a negative impact on our growth rate and a rigorous review of our strategic priorities.”

Crypto.com

Crypto.com announced would lay off 5% of its company or 260 members of its workforce to “ensure continued and sustainable long-term growth”, CEO Kris Marszalek said in a tweet on June 10th. He added: “We will continue to evaluate how best to optimize our resources to position ourselves as the strongest builders during the down cycle to become the biggest winners during the upcoming bull run.”

Over the past six months, Crypto.com has paid around $1.4 billion to become a sponsor of the FIFA World Cup and put its name on what was once the Staples Center in Los Angeles, as well as $100 million added for Matt Damon to star in Crypto.com’s Super Bowl commercial earlier this year, featuring the remarkable statement, “Luck favors the brave.”

2TM

2TM, the company that created the Bitcoin Market, has launched a declaration saying it would lay off 12% of its 750 workers in the same week. The company that runs Latin America’s second-largest cryptocurrency exchange by volume, according to data from CoinGecko, based the decision on “changes in the global financial landscape” that required going beyond reducing operating expenses.

Name

Bisto, the largest cryptocurrency exchange by volume in Latin America, had revealed that it was cut 80 of its 700 employees in the previous week amid a tight economy. The company was founded in 2014 and operates in the US, Colombia, Mexico, Brazil and Argentina. The exchange hosts 34 tradable currencies and claims to be the largest in Mexico.

good bit

Buenbit, a major cryptocurrency exchange in Argentina, also said it needed to lay off 45% of its workforce at the same time, reducing its workforce from 180 to 100. CEO Federico Ogue said in a statement. Twitter Thread“After a 2021 of exponential growth for the technology industry, we find ourselves going through a phase of global review.”

Who is hiring?

While momentum in markets is waning at some companies experiencing a hiring hangover, others are expanding and possibly gaining talent that their competitors are missing out on.

FTX

FTX has no plans to stop hiring new employees, Sam Bankman-Fried, the company’s CEO, said June 6. The second largest cryptocurrency exchange by volume behind Binance, according to data from CoinMarketCaphas approximately 250 employees.

“We’re going to keep moving forward,” Bankman-Fried said in a Twitter Thread. “Because we hire carefully, we can continue to grow regardless of market conditions.”

Kraken

Kraken said it has no intention of making any layoffs and views the current market downturn as a “time to build”, the company said in a statement. blog post on June 15th. He claims he hasn’t adjusted his hiring plans and has 500 vacancies to fill by the end of this year.

In the statement, the company emphasized that it is not guided by “short-term opportunities to maximize profit” and has learned to navigate difficult times with the experience of previous cycles, having been created in 2011.

Binance

Binance CEO Changpeng Zhao said Binance is gaining weight as its competitors try to slow down, announcing that the company is hiring 2,000 employees on the same day that Kraken also revealed an effort to hire more.

“It wasn’t easy to say no to Super Bowl ads,” said the CEO said in a tweetimplying that having paid for the potential visibility would not be in the company’s best interest.

“If we are in a crypto winter, we will take advantage of it, we will use it to the fullest,” Changpeng Zhao said, according to the paper. Fortuneat the Consensus 2022 conference in Austin, Texas, adding that Binance has a “healthy war chest.”

Open sea

Open sea announced it’s “general hiring” on June 14 at the bottom of a blog post on its website, revealing details about the launch of its new Seaport, a Web3 protocol designed to make it easier to buy and sell NFTs.

Everstake

Everstake, a Ukraine-based Web3 company, offers customers high-yield cryptocurrency staked accounts and “continues to grow its staff,” adding 30 employees since Russia’s invasion of Ukraine, said Vlad Likhuta, the company’s head of growth. . decrypt in an email, also on June 14.

Polygon

Polygon, the company known for its sidechain network that bears the same name and allows dapps to be built scalably on Ethereum, is growing too, CEO Ryan Watt said in a tweet on June 15, reporting that the company is striving to increase its headcount by around 15% by the end of this year.

On the same day, Polygon’s Head of Remote Tyler Sellhorn asked people on Twitter who know of laid-off individuals from Coinbase and other Web3 companies to apply for Polygon, posting a link to the company’s jobs page on a website. subsequent tweet.

From where from here?

Until the cryptocurrency markets reverse course, more companies may announce layoffs or even close altogether, and the downward trend in prices for most digital assets could be exacerbated by a declining stock market or further economic turmoil.

However, some companies will seize the opportunity and try to position themselves in the hopes of capitalizing on the market recovery, whenever that is.

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