Major Crypto Business Indicator Drops Below 11-Year Lows
While another wave of regulatory attacks on crypto stole the headlines of all media, Fortune Crypto releases a research on business development, HR and fundraising challenges Web3 is going through in 2023.
Monthly number of new crypto start-ups loses 98% since January 2022, job listings also plunged
Major U.S. financial hubs, including Las Vegas, Los Angeles and Boston, registered an over 50% drop in crypto job listings since the peak in 2022. Las Vegas is the worst sufferer as it lost over 80% of its open positions for Web3 professionals.
JUST IN: The number of new monthly crypto startups has fallen off a cliff, down 98% since early 2022 pic.twitter.com/6rEDkkvNzG
— Milk Road (@MilkRoadDaily) July 7, 2023
But another trend looks even more dramatic: The monthly number of new cryptocurrency start-ups dropped to levels unseen since 2012 as a result of a 98% drop in the last year and a half.
Such observations were made by the Milk Road newsletter's team, which studied the Collapse of the Crypto Bubble report by Fortune Crypto's Leo Schwartz.
In the last five years, the metrics of new start-ups opened monthly registered two peaks: In early 2018, over 120 firms were opened in the U.S. to drive forward the crypto sphere, while in early 2022 this indicator peaked at 80 openings per month.
At the same time, the effect of the ongoing collapse affected various U.S. regions differently. For instance, in Washington D.C., the number of job listings witnessed only a pale 5% drop. For New York, a 36% reduction was registered.
Is this really big deal?
As reported by U.Today previously, some cryptocurrency heavyweights in the U.S. continued hiring officers of various segments even amid the most painful bearish season phase in Q4, 2022.
Alex DovbnyaAt the same time, the largest U.S.-based exchange Coinbase even rescinded job offers for people that were ready to start working. For some of them, this resulted in an F-1 USA visa being discarded.
Some commentators are sure that the effects of both aforementioned metrics should not be overestimated. Alexei Zamiatin, the founder of Bitcoin DeFi startup Interlay, stresses that the current recession helps the segment filter out "tourists":
It's no longer easy money and only the determined ones are sticking around to deliver
This recession was also marked by a notable layoff campaign: In February, Polygon Labs cut its workforce count by 20%.
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