As Bitcoin BTC/USD enters a bull run, reaching $69,000—a level unseen since November 2021—crypto exchanges are coming back to life, ending hiring freezes, and reversing layoff trends that have loomed over the past two years.
At the beginning of 2023, cryptocurrency exchange Coinbase Global announced that staff reductions could continue following a 20 percent workforce cut. Other exchanges Crypto.com, Huobi Global, Gemini, and Luno also implemented layoffs as part of cost-reduction measures.
Binance, the world's largest exchange, scaled back its workforce by 1,000 employees, according to a report by The Wall Street Journal in July 2023.
To put into perspective, LinkedIn data analyzed by Coincub in October 2023, revealed a 95% drop in Bitcoin-specific roles and a 90% decrease in the broader crypto job market. In the United States, traditionally a stronghold of web3 employment, there was an 84% fall in job listings, sliding from 21,901 to 3,418 in a single year.
However, the rebound in Bitcoin's price coupled with anticipation around the Bitcoin halving event, which is slated for mid-April, and the huge volumes around Bitcoin spot Exchange-Traded Funds (ETFs), are reigniting recruitment efforts in the sector.
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End To The Hiring Freeze Era
Binance, the world's largest cryptocurrency exchanges by trading volume, is looking to hire more throughout 2024. "In 2024, our focus is predominantly on recruiting in product, engineering, and compliance domains," Vishal Sacheendran, Binance’s Head of Regional Markets, told Benzinga.
While the climb in Bitcoin prices hasn’t led to immediate changes in Binance’s hiring strategy, it "surely renewed a sense of optimism and excitement in the industry," said Sacheendran.
For the crypto exchange Bitget, Bitcoin climbing to $64,000 means more job openings, especially towards the marketing front.
Vugar Usi Zade, COO at Bitget, said, "Bitget is happy to support the increased attention to the broader cryptocurrency markets brought by Bitcoin's outstanding performance."
He believes favorable market environments may "prompt some traditional finance veterans to become part of the crypto sector," adding that while "job finding may become easier, substantial salary hikes are unlikely."
Joe Vezzani, CEO of LunarCrush,a social analytics platform believes that BTC’s rally means “a surge in hiring among newly funded companies” but the quickness of this market shift “means we’ve yet to witness a significant material impact on the industry hiring. The fresh scars from the bear market linger, tempering the immediate optimism with a cautious pragmatism.”
Centralized crypto exchanges view the Bitcoin surge as an opportunity to explore various market prospects; however, DeFi platforms are not making any significant changes nor increasing their hiring rates.
DeFi Remains Unaffected
DeFi platform Pendle Finance CEO TN Lee, in an interaction with Benzinga, said that despite Bitcoin’s climb, little has altered in their investment and product development tactics. When asked about the impact on hiring plans, Lee adds, "We are not planning to hire aggressively in 2024."
Lee pointed out a growing demand for expertise outside of engineering, particularly in business development and growth marketing.
Echoing Lee’s perspective, Tristan Dickinson, Head of Marketing at dYdX Foundation, noted that DeFi platforms won't be subjected to any strategy shifts.
"The dYdX Ecosystem hiring strategy remains consistent in a bull or bear market, across the 4 core organisations are lean efficient teams with new hires that suit specific gaps. BTC touching 64k won't drive an influx of hiring,” explained Dickinson.
He adds, "Its apparent that if your hiring strategy is dependant on market conditions your likely to face challenges. What we've seen is rapid growth without sustainability impacting the industry. The dYdX Ecosystem will continue to strategically focus on clear north stars, these north stars dont change when the market is up or down. This measured approach naturally mitigates upturns or downturns."
Photo by Fernando Cortes on Shutterstock
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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