The once red-hot crypto job market is feeling the chilling effects of the ongoing bear market. After a hiring frenzy that seemed unstoppable, crypto companies are now slamming the brakes on their explosive growth – and employees are paying the price. Layoffs, hiring freezes, and rescinded offers are becoming the norm as firms grapple with plummeting crypto prices and dwindling venture funding.
Crypto Winter Hits the Job Market
The crypto industry is no stranger to boom and bust cycles. But the current downturn, dubbed “crypto winter” by insiders, is proving especially harsh for workers. As bitcoin and other digital assets plunge in value, crypto companies that had been on a hiring spree are now racing to cut costs.
Even industry giants like Coinbase, Gemini, and BlockFi have not been immune. In June alone:
- Coinbase laid off 18% of its workforce, over 1,000 employees
- Gemini cut 10% of staff amid the “crypto winter”
- BlockFi slashed headcount by over 20% as it braced for an “extended” downturn
Crypto exchanges, lending platforms, and NFT startups have all felt the squeeze. Industry job postings have plummeted and many remaining openings are seeing salaries slashed. Workers who jumped to crypto from tech and finance for big pay bumps are now confronting a new reality.
From Hiring Spree to Firing Frenzy
The job cuts mark a stark reversal from crypto’s recent hiring boom. In 2021 and early 2022, flush with VC cash and surging asset prices, crypto firms went on a massive staffing spree. Coinbase alone added over 3,200 employees in 2021. Crypto job postings soared as companies fought to lure top talent with eye-popping salaries.
It was a mad rush for crypto talent. Companies were doubling or tripling salaries overnight to outbid each other. Six-figure signing bonuses were the norm. It felt like the good times would never end.
A recently laid off crypto worker
But as the bear market bites, that hiring frenzy has turned into a firing spree. Startups that raised mega-rounds at nosebleed valuations are scrambling to extend their runways. Industry giants are pruning payrolls to weather the storm. And workers are learning the hard way that in crypto, the good times can end as abruptly as they begin.
A New Era for Crypto Jobs
The crypto job market faces a painful readjustment period ahead. As the industry shakes out, hiring will be slow and layoffs are likely to continue. Salaries will deflate from their frothy highs and competition for the remaining jobs will be fierce.
But while the short-term outlook is grim, industry veterans say the “crypto winter” will ultimately be healthy for the job market. By flushing out overhyped projects and forcing companies to focus on fundamentals, the downturn could put the industry on more sustainable footing for the future.
We’re in the midst of a major shakeout. There will be a lot of pain in the short term as the market separates the wheat from the chaff. But the companies that make it through will be battle-tested and poised for the next growth cycle. The crypto job market will reemerge stronger.
A crypto recruiter
In the meantime, crypto workers are hunkering down for a bitter “crypto winter”. The days of lavish salaries and signing bonuses are over as a new era of austerity sets in. But for those who can ride out the storm, sunnier days may still lie ahead – whenever the next crypto springtime arrives.
