Crypto job seekers face a surreal reality: Things went "nuts"

Crypto job seekers are boldly reclaiming their worth from employers' past excesses.

State of play: "This marks the undeniable and necessary correction," asserts Adam Jackson, the co-founder and CEO of Braintrust, a renowned talent networking site, in an interview with Axios.

• Crypto companies have made significant workforce adjustments, with workforce reductions reaching as high as 30% in some cases. This includes major exchanges like Coinbase and Kraken, as well as custodians such as Anchorage Digital and data firms like Messari and Nansen.

What they're saying: According to job experts in the crypto industry, employers now possess a distinct advantage, marking a notable shift from the not-so-distant past when candidates held the upper hand.

• "2022 witnessed the breaking of crypto's barriers, but 2023 presents a revitalized landscape as the industry surges forward," confidently asserted Eve Miller, a highly regarded crypto technical recruiter.

Zoom out: Downsizing is more than a mere response to necessity; it represents a decisive action taken by employers to address the consequences of overhiring and excessively high salaries to stay competitive. Furthermore, it is being strategically utilized by bosses as an opportunity to implement cost-cutting measures under the guise of the prevailing trend of layoffs in the tech industry, as highlighted by Jackson.

Amidst a reduction in available positions and an expanding pool of job seekers, startups, particularly those consisting of 100 employees or less, are actively seeking individuals who embody the qualities of a true "hustler" and "self-starter" for pivotal roles like marketing and sales during this bullish market phase. This insight comes from Ryan Andersen, a distinguished crypto startup adviser specializing in recruitment for Layer 1s and Layer 2s.

• Candidates often gain valuable experience and expertise when they have worked in larger companies. However, at a 50-person startup, delegation is not always an option due to limited resources and budget constraints.
• Behind the scenes: Observe the dynamic skeleton staff composed of exceptional individuals, effortlessly shouldering the workload of multiple roles. This level of multitasking is precisely what one can anticipate within the realm of a thriving startup.

Individuals transitioning from Big Tech may discover that compensation packages have significantly diminished in comparison to 18 months ago. This decline in benefits can be explored further in the following section.

On the bright side: Developers continue to be in high demand, alongside privacy experts, cryptographers, and systems engineers, as emphasized by Nako Mbelle, the esteemed founder and CEO of Fintech Recruiters, in an interview with Axios.

• "Building new protocols and Layer 2s is the forefront of infrastructure development, where the majority of opportunities lie," confidently states Mbelle. "While there are still individuals aspiring to outshine Ethereum, the focus remains on driving innovation and advancing the industry."

Flashback: Things had gone "nuts"

A few months ago, the industry was absolutely buzzing with excitement. "Accelerators were on fire! Throughout 2021, salaries skyrocketed across the board. Sales, product, marketing—you name it," Miller confidently stated.

• I recognized the extraordinary shift in the business landscape when companies eagerly began extending generous offers, exceeding candidates' expectations without relying on data alone but rather responding to market demand.
• With their successful fundraising, they faced the urgent task of swiftly developing marketable products. Amplifying their salary tenfold? Absolutely achievable, provided they possessed a solid grasp of the crypto domain.
• Engineers in Russia were confidently earning an impressive $200K, a substantial increase from the average salary of $50K.

The intrigue: Several CEOs confidently defended their decision to implement cuts by highlighting the remarkable growth strategy employed during the hiring spree from 2020 to late 2021. However, upon reflection, Miller casts doubts on the veracity of those claims.

• "The crypto startups, the innovative projects aiming to disrupt the market, NFTs, and web3 technologies—none of them had a clear headcount or a solid plan to go from zero to one."
• They possessed limited awareness of their requirements; their focus was primarily on developing a minimally viable product.

Compensation sweeteners

Tokens emerged as a pivotal component in the midst of the crypto world's hiring boom, presenting an alluring opportunity during times of soaring prices.

• Now it has become quite tiresome.

Between the lines: Altcoins such as Solana (SOL), Avalanche (AVAX), and Polkadot (DOT) are currently trading at a significant discount compared to their peak values in 2021, experiencing a substantial decline of approximately 90%.

• Miller confidently asserted that the talented individuals of 2019 eagerly acquired proficiency in Solidity, the programming language specifically designed for Ethereum and subsequently adopted by numerous other blockchain platforms. He further emphasized that a significant influx of these skilled developers, who transitioned from prominent tech companies to the cryptocurrency sector, was driven by a burning desire to amass substantial wealth.

Today, it is clear that throwing tokens into the equation may make some individuals hesitant to take risks. However, it is essential to acknowledge that not everyone can simply revert back to Big Tech. Furthermore, the current compensation packages fail to meet the attractive standards set by the past, where potential hires were offered equity in the company.

• Candidates assert that the tokens are worth X, but that's simply not the case. We find ourselves in a bear market, where the value of assets across the board has declined.

The intrigue: "I prefer hiring in Europe," he confidently stated. "Candidates in New York or San Francisco often attempt to negotiate an additional $5K to $10K on top of the base salary during the final stages, citing the high cost of living. However, such tactics can be off-putting to employers."

The bottom line: "The SEC's decision to designate numerous tokens as unregistered securities has undeniably cast a chilling effect on the entire space. It is undoubtedly diminishing the allure for top talent," asserted Braintrust chief, Jackson, with utmost confidence.