How is the cryptocurrency industry doing?

During this bear market, the cryptocurrency industry is plagued by massive layoffs, however, this is not a generality. In this roundup, we will also report exclusive testimonials from Bybit, Sorare, and Coinhouse, to understand how these companies are doing during this period.

The bear market and its consequences on our ecosystem

Since the collapse of Terra, the market has entered an even more pronounced downward phase than that started since November 2021. This episode has revealed many flaws among the various players in the cryptocurrency market, leading to a wave of layoffs.

Whether preventive measures or real difficulties, the cuts are sometimes significant, often exceeding 20% of staff.

The reason given is generally the same : the phase of uncertainty that the market is currently experiencing.

However, such layoffs are not necessarily an industry standard, as we will see with Sorare and Coinhouse. We therefore made a point of interviewing actors who recruit and dismiss, so as to have opposing views.

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Update on layoffs in the cryptocurrency industry

Not all crypto companies that have resorted to layoffs are in the same boat. Some companies definitely won’t get up the difficulties they encounter, such as the Singaporean platform Holdnaut, which separates from 80% of its staff. In addition, we must recontextualize, here, 80% represent “only” 40 people.

So let’s start with a non-exhaustive table of the different companies that have made redundant:

Summary table of dismissalsSummary of layoffs in the cryptocurrency ecosystem

Note that the figures are not based than on public communications, which complicates the investigation. Crypto.com, for example, could have parted ways with more than 1,000 people instead of the announced 260, although it is difficult to attest to this.

On the Coinbase side, it had started by freezing hiring and canceling its job offers, to then part with 18% of its workforce. In June, Bitpanda, which had more than 1,000 employees, informed reduce its forces to 730 people. However, the platform did not plan to get there a few weeks earlier.

However, these choices are not always due to poor financial health. In the case of Bybit, these decisions are motivated in particular by growing too fast :

“Bybit remains a company in excellent financial health, the 3rd largest crypto exchange in the world in terms of volume traded. But the workforce had grown at an uncontrollable rate (multiplied approximately five times in one year) creating duplication in the organization, harming the very efficiency of the company and obviously impacting profitability.

Bybit’s situation was far from bad, but not making such decisions in time could have led to real difficulties in the years to come. To govern is to foresee and anticipate. »

Thus, the company has carried out 300 layoffs or non-renewal of contractsthis represents approximately 15% of last spring’s workforce. These decisions have been difficult for Bybit, as our contacts within the company tell us, it is never easy to part with a large number of colleagues.

However, the people targeted were given priority contracts about to expire. Support programs have been put in place for rapid professional reintegration, and financial compensation have been done.

Recruitments should resume by Septemberperiod until which they are frozen.

On the other hand, Bybit returns to the possible damage that the Terra, Three Arrows Capital (3AC) or even Celsius cases could have caused them:

“The bankruptcy of 3AC had little impact on us, as it represented a minor role in our business […]. The same goes for Celsius. Terra has affected us more severely as exchanges have had to work day and night to overcome technical failures of the blockchain, defaults on UST liquidity pools and user panic. […]. However, we are very satisfied with the way we handled this incident. »

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companies that recruit

other companies live very well this bear market. We can cite the example of giants like Binance with 672 job offers on its site at the time of writing this article. Kraken is also holding its own, with 180 bids.

But French players like Coinhouse are doing just as well. Its communications director, Johann Ouaki, tells us that the company’s presence on the market since 2015 made it possible to anticipate the situation with a certain maturity. Its strength also lies in stable products so as not to be limited to the volatility of cryptocurrencies alone.

We also asked him if the current situation is hampering the good momentum of Coinhouse:

“Not at all, on the contrary, bad contexts often force creativity and acceleration. We are in a dynamic conducive to imagining new things, both in terms of partnerships and in terms of products or marketing approach. »

Still on the French side, Sorare is also doing well with many recruitmentsas Chief Growth Officer Brian O’hagan tells us:

“We are recruiting for all positions. We have more than 100 positions to fill by the end of the year in Paris and New York. The rarest profiles are the most complicated [à trouver]. For instance, [nous cherchons] to recruit Go developers (a relatively new programming language) and it’s a challenge. »

If we refer to the company’s recruitment announcements, several sectors are actually looking for new employees with, among others:

  • Development ;
  • Marketing ;
  • Finance ;
  • Content creation.

Moreover, Sorare is profitable since its inception and the arrival of baseball should accelerate this dynamic. In the first half of 2022 alone, the platform recorded more volumes than in the whole of 2021:

“For example, despite the market downturn, Sorare has experienced explosive growth over the past year: in the first half of 2022, we increased transaction volume by more than 274% compared to the first half of 2021.”

For his part, Johann Ouaki from Coinhouse discusses the changes caused by the bear market. He also insists that this is seen by the company as an opportunity to improve :

“We are seeing new behaviors among our customers. We are asked many questions and this curiosity, ultimately very healthy, requires us to strengthen our approach, historically anchored around pedagogy and support. In terms of negative impact, we observe more reluctance on the part of new entrants especially, but education and support are once again the key to allowing us to move forward. »

As for Celsius, 3AC or Terra, the company also specifies that it was not affected beyond the global earthquake in the market. Indeed, Coinhouse had no exposure on these various projects.

Although layoffs necessarily make more noise in this anxiety-provoking atmosphere of the market, we note despite everything that a number of players are working to build for defining the future of the cryptocurrency industry. Beyond the losses, a bear market should also be seen as a chance to become more efficient.

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