Crypto bosses like me have to let go of some of the most talented people in America. Here’s why you should jump on hiring crypto castaways
Crypto winter has arrived – and it’s cold out there for the thousands of employees being laid off in response to the sector’s worst downturn in years.
I should know. My cryptocurrency company is one of the many that had to cut staff earlier this year when the crypto market crashed. Simply put, we were overstaffed for slower than expected growth. The collapse also came at a time when we were transitioning from retail to becoming a B2B company, so we no longer needed certain roles.
But the crypto industry’s loss is a potential gain for other employers in a variety of industries who can benefit from the dynamism, autonomy and analytical thinking skills that crypto-natives tend to have in spades. The overall labor market is resilient – and employers should take serious considerations to any crypto disasters that come their way.
New day, new cuts
Despite its short history, crypto is no stranger to sudden, painful bear markets that force firms to quickly cut their staffing costs. This follows a three-year period of exuberant growth that saw Bitcoin and other tokens reach massive new highs, the influx of millions of retail investors, an explosion of new products and services, and a surge in hiring. The number of US crypto job postings increased by 395% between 2020 and 2021, far higher than the overall tech industry.
Then came the spring of 2022, when every day seemed to bring fresh news of major crypto job cuts. Coinbase cut about 18% of its workforce, or 1,100 jobs, Crypto.com cut about 260 jobs, and lending firm Blockfi shed about 160 people.
At Coinchange, we laid off almost 30% of our employees, downsizing from 70 employees to around 50 during April and May.
While it appears the worst is over, I expect a small trickle of job losses will likely continue until the market turns. Like many of our crypto peers, we are no longer laying off employees, but we have allowed some vacancies to go unfilled.
As crypto firms like ours were intensely growth-focused, they outperformed during the bull market in the battle for more customers and a larger market share. Now that the air is coming out of the market, they must quickly cut staffing costs to stay afloat and weather a downturn that could be exacerbated by the worsening economic outlook. In other words, hire slow, fire fast. Redundancies are painful, but we do what needs to be done to maintain and grow the business: prioritizing long-term shareholder value over short-term pain.
Natural fit for crypto natives
TThe most natural home for displaced crypto talent is arguably the startup world. People who have worked in crypto tend to be good at building things from scratch, taking ownership and being flexible.
The crypto industry requires people who can hone their skills in a fast-paced, ever-changing environment without needing a playbook. It is an ability that is highly relevant for start-ups in the technology sphere and other sectors.
Web3 applications will embed the use of blockchain and personal ownership into a wide range of online experiences, creating more demand for crypto-related skills and experience. For example, blockchain-based gaming continues to make money, drawing a lot of interest from venture capital firms as it increasingly merges the worlds of video games and crypto.
Blockchain technology is also seeping into a wide range of other industries where former crypto employees can add value. Banks and fintech firms increasingly need employees with crypto experience and expertise for their digital asset initiatives.
Merchants need to understand and deploy blockchain solutions for payment gateways, greater transparency and auditing. Several oil and gas companies have also implemented blockchain solutions to improve their operational efficiency.
Employers do not need to be in technology or develop blockchain applications to benefit from crypto refugees.
Many of the jobs cut have been in roles that were focused on winning and retaining customers, such as customer support/success, and marketing and sales positions. Others at risk will be employees involved in special side projects that do not add much to the business’s core value. At Coinchange, we are cutting staff in the marketing, sales and customer support divisions.
People who have worked with crypto in areas like marketing and customer success tend to be strong at explaining complex concepts in easy-to-understand terms – a highly desirable quality in all kinds of industries and roles. Potential employers can assess these skills by asking applicants simple questions about their industry, such as “What is blockchain technology?” or “Explain Bitcoin to me.”
Crypto workers tend to be global in location and outlook, which makes them fit into the post-pandemic hiring process that is becoming integrated into industries like tech.
Employers should also consider that this is a limited time offer to attract and onboard crypto talent. Crypto as an industry is not going away – and we will quickly switch back to hiring mode when the next bull market is underway.
Maxim Galash is CEO of Coinchange.
The opinions expressed in Fortune.com comments are solely the views of their authors and do not reflect the opinions and beliefs of Fortune.
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