Cryptocurrency job market shows few signs of slowing down, despite high-profile staff layoffs and freezing of hiring in large technology companies.
In recent weeks, several large tech companies have announced downsizing, citing a downturn in the traditional market and declining demand for products that had been booming during the pandemic.. Recently announced job cuts include Twitter, Uber, Amazon and Robinhood.
On Tuesday, the movie streaming service Netflix terminated the functions of 150 employees, mostly based in the United States, amid slowing revenue growth. Earlier this month, Meta, Facebook’s parent company, froze hiring for most of its mid- and senior-level positions after falling short of revenue targets.
The cryptocurrency sector has not been totally immune. On Tuesday, Coinbase announced that it was holding back on trading, after posting a $430 million loss in the first quarter. Coinbase COO Emelie Choi told employees in an internal memo that plans to triple its headcount by 2022 were on hold due to market conditions that require the company to start “slow hiring and reevaluate our operations.” staffing needs compared to our highest priority business goals.”
So, Are we at the beginning of a major downturn in cryptocurrency industry hiring? Cryptocurrency recruiters Cointelegraph spoke to don’t think so.
We’ve been hearing about a big slowdown in tech but we’ve hardly noticed it other than many more candidates looking to enter the crypto markets. We’ve been overwhelmed with requests for quality candidates and have positions across all sectors.
— Cryptorecruit (@cryptorecruit) May 18, 2022
We have been hearing about a huge downturn in the technology, but we have hardly noticed it other than that there are many more candidates looking to enter the cryptocurrency markets. We have been overwhelmed by requests for quality candidates and we have positions in all sectors
“We haven’t seen a slowdown in crypto staff hiring. We’re as busy as ever,” said Neil Dundon, founder of Crypto Recruit.
Dundon’s firm specializes in recruiting exclusively within the blockchain and cryptocurrency space:
“We have a globally based team in the US, Asia/Pac and Europe regions, and demand is equally high throughout the region.”
Kevin Gibson, founder of Proof of Search, told Cointelegraph that layoffs in the tech sector have had little to no impact on their crypto industry clients so far.
“I’ve only heard of two companies that are laying people off,” Gibson said. “That may change in the next month, but any slack will be immediately taken up by well-funded, quality projects. As a candidate, you won’t notice any difference. If you lose your job, you’ll also have multiple offers very quickly.”.
Venture Capital Financing Gateways
Gibson said that most cryptocurrency projects are still in the nascent and early stages of their lifecycle, and are still operating with venture capital (VC) funds secured last year:
“The vast majority of quality projects received funding last year, so they will continue to build and contract. There was such an imbalance between the talent and the role that any pushback from pre-funded projects will go unnoticed.”
CB Insights’ “State of Blockchain Q1 22” report stated that blockchain and cryptocurrency startups saw record funding quarter; venture funding hit an all-time high in the three-month period, raising $9.2 billion and topping the prior quarter of $8.8 billion in Q4 2021. It was the seventh consecutive quarter of record funding for the blockchain industry.
Dundon said that he has seen more traditional tech companies and employees venture into the crypto space, further enriching the crypto job market:
“At a minimum, most forward-thinking tech companies are allocating some budget to look at how they could incorporate blockchain into their existing models. Not only are more companies venturing into this space, but candidates are flocking as traditional technology shrinks.”
A LinkedIn study published in January of this year showed that Cryptocurrency-related job openings increased 395% in the United States between 2020 and 2021, compared to an increase of just 98% in the tech industry in the same period. The most common job titles in demand include blockchain developers and engineers.
According to Glassdoor, the median annual salary for blockchain developers is $109,766. The median annual salary for blockchain engineers is slightly lower at $105,180.
When asked if the current cryptocurrency bear market could translate into more cryptocurrency company layoffs, Dundon said he does not expect a situation similar to 2018 to occur..
“Hiring of cryptocurrency experts in the past has tended to slow down just as the price of bitcoin drops. It was almost directly correlated to its price,” Dundon explained.:
“However, this time it is different, as crypto companies now manage their treasuries in a much more responsible way. All this translates into a much more stable contracting market.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.