How Cryptocurrency Experts Remain Optimistic In This Crash?
Recent reports of layoffs at Snap Inc., 2TM, and Rain indicate that the cryptocurrency business is having challenges. In response to the ongoing crypto freeze, they join a lengthy list of cryptocurrency companies that have suspended operations. Since April of 2022, Moneyweb claims that over 5,000 employees have lost their jobs in the industry. Nevertheless, despite the declines, cryptocurrency experts and recent financing statistics provide an optimistic picture of the industry’s early stages. The most recent business to announce a workforce decrease was 2TM, the parent company of the Brazilian bitcoin exchange Mercado Bitcoin. The organization supported by SoftBank aims to downsize its employment by around 15 percent, eliminating approximately 100 positions. This is the company’s second wave of layoffs; at the beginning of June, 2TM laid off over 90 employees or more than 10 percent of its staff.
Before 2TM’s statement, one of the largest cryptocurrency exchanges in the Middle East, Rain Financial, planned to reduce its workforce. The company allegedly let go hundreds of workers, claiming “operational challenges and market circumstances” as the primary reasons for the decision. Rain, a business backed by Coinbase, has laid off hundreds of workers today, marking the company’s second wave of layoffs since June. In contrast to the recent layoffs at 2TM and Rain, Snap Inc., the parent company of Snapchat, has wholly dismantled its Web3 division. According to a report by Verge, this action is part of the corporation’s attempt to reorganize, which will result in the company laying off almost 20 percent of its staff, or nearly 6,500 employees.
— crypto world talk (@cryptoworldtal2) September 14, 2022
Due to a reorganization at our firm, we decided to dismantle our Web3 team. It is reported that Crypto.com had another round of layoffs in August, making this the company’s second round of layoffs in 2018. The Bitcoin industry giant let go of approximately 260 employees at the beginning of June, or about 5 percent of its total staff. According to a report, even though the specifics of the most recent round of layoffs have not yet been made public, it is anticipated that they would be more severe than the prior one. Despite a significant fall in employment in this field over the last several years, the market for jobs related to digital assets is said to be expanding. Kevin Gibson, the founder of cryptocurrency hiring service Proof of Search, stated in a recent interview that “there is still a significant amount of demand.” He explained that the cryptocurrency market lacks experienced CTOs, CMOs, and token experts and that GameFi, Metaverse, decentralized finance, and NFT-focused companies are actively recruiting new talent. According to him, the sector lacks skilled CTOs, CMOs, and token experts.
Even if the bitcoin sector is now experiencing winter, many seasoned professionals from conventional finance are transitioning into the cryptocurrency market, suggesting this is the case. Schafer, who spent 15 years as an Executive Director at JPMorgan and now heads the German arm of 21Shares, the world’s first digital asset ETP issuer, stated, “I believe in the long-term opportunity of crypto — the asset class is growing and is still in its infancy, so I am focused on the long-term opportunity rather than the short-term market conditions.”
According to data provided by Messari a famous cryptocurrency expert, $30.3 billion will flow into the digital asset business in the first half of 2022, showing the correctness of this claim. In comparison to the prior year, several sectors have likewise seen significant growth. For example, DeFi received 767 million dollars in investment during the first half of 2021. During the same time frame this year, the sum rose to around $1.8 billion.
The same is true for NFT projects, which amassed around $1.5 billion in investment and contracts during the first half of 2021. During the first half of 2022, this figure increased to almost $6.7 billion. These industries, including CeFi, Web3, and infrastructure, reflect this development trend. Even if layoffs and job losses have occurred and will continue to occur, the future forecast for the market for digital assets remains positive. During the crypto boom of 2021, many companies employed more personnel than needed; now, as financial pressure mounts, they are forced to rethink their workforce needs. However, the bulk of the crypto sector is still in its infancy, and there is a severe lack of skilled staff who have previously dealt with digital assets or are otherwise familiar with them. The fundamental characteristic of cryptocurrencies is that they undergo cycles, such as the present downward trend. According to historical information, the market should quickly recover from its current low and continue to reach new highs in the future.