Every tenth employee of the crypto industry lost his job
Date: 2023-07-11 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
Employment in the cryptocurrency industry decreased by 10% last year. There are now about 190,000 people in the industry, up from 210,000 in 2022, according to the K33 report.
Now there are about 10,000 companies in the crypto industry, whose total value is estimated at about $180 billion, of which about 60% of employees work in trading and investment companies. Only 6% of workers are employed in the NFT sector, and 21% are involved in blockchain protocols, analytics, and mining.
Almost a third (30%) of all employees in the crypto industry reside in the United States. Analysts believe that this trend will continue, as the United States is the "center of gravity for the crypto industry."
The Asia-Australia region accounts for approximately 35% of the global cryptosphere workforce, with one in five employees living in India. In Europe, 24% of crypto employees are accumulated. At the same time, the UK ranked first in the region with 13,000 jobs.
Controversial Binance
The Binance crypto exchange turned out to be an exception. Since the beginning of 2023, the platform has increased its staff by 30%, despite problems in the United States and Europe. Binance now has about 7,000 employees, analysts say.
However, these data contradict the data of journalists, who at the end of May reported on impending layoffs. Later, Binance's chief strategy officer, Patrick Hillmann, confirmed this. According to him, the company decided to "redistribute resources" in a dynamic market.
2022 leads in layoffs
CoinGecko analysts found that layoffs at cryptocurrency companies increased sharply in June 2022, November 2022, and January 2023. These periods are due to the collapse of Terra Luna, the bankruptcy of the FTX crypto exchange, as well as the pressure on the crypto industry in early 2023.
Thus, the collapse of Terra Luna led to a sharp increase in the number of layoffs in the crypto industry to more than 3000 in June. This exceeded the monthly average by 13.4 times. In November 2022, 1805 employees lost their jobs, which is 8 times more than the monthly average.
Several rounds of layoffs were carried out by large centralized exchanges, including Bybit and Coinbase. Over the past year, they have reduced staff at least twice.
