How Miserable Is It To Work In Crypto Right Now and Is the Money Still Worth It?
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Yaёl Bizouati-Kennedy
4 min read
The past couple of years have been extremely difficult for the crypto ecosystem. Scandals, collapses, losses and lawsuits marred the industry, resulting in a loss of confidence in the space — and a loss of funds for many. While 2023, fared better, the trial of former FTX chief executive Sam Bankman-Fried — found guilty of all seven criminal counts against him in November — coupled with many assets still struggling to regain ground, made for a somewhat lukewarm environment.
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While the industry is still reeling from these developments, 2024 seems off to a good start, notably with the recent and long-awaited Securities and Exchange Commission (SEC) approval of Spot Bitcoin exchange traded funds (ETFs), which many see as a legitimization of the space and the Holy Grail of crypto.
Yet, for people working in crypto — and its broader ecosystem — however, the ride has proven rocky, although there are some glimpses of hope, with some experts arguing that “it can only go up from here.”
To put this in context, in December, crypto job postings on LinkedIn declined a whopping 57% year-over-year, yet, it’s less than the 71% year-over-year drop in November, according to Bloomberg.
Phillip Shoemaker, executive director of Identity.com, a non-profit organization providing decentralized identity verification, said that while he knew this was going to be a long downturn and took a conservative approach, “getting cash in the bank and such,” he still didn’t expect this bear market to be as long as it has been.
“Obviously, SBF did a big disservice to us by inviting in the regulators and then really angering them, because he stabbed them in the back by being a fraudster,” said Shoemaker. “There’s been a lot of unhappiness in the space post-FTX, and regulators have been bringing heat. But regulation does need to happen. I’m more concerned about good crypto companies just being down in this environment, but is the time to stay in your lane, to work and, well, to keep building. The bull market will return — it’s a matter of when, not if.”
A Dramatic Shift
For some participants, working in crypto post-FTX, is working in a landscape that has “dramatically shifted.”
For instance, Tayler McCracken, editor-in-chief, Coin Bureau, said that the aftermath of the FTX collapse, the SBF trial, and other high-profile setbacks have significantly altered the industry’s atmosphere.
“The once buoyant interest has waned, as reflected in the reduced engagement with our content and a noticeable decline in job inquiries. Conversations have shifted from eager curiosity about joining the crypto world to cautious inquiries about its viability,” said McCracken.
Yet, he also noted that despite these challenges, their commitment to the crypto industry remains unwavering.
“Those of us who continue to navigate these turbulent waters do so out of a firm belief in the potential of crypto to foster a more inclusive, transparent and equitable financial system. We are confident that the industry will emerge stronger, learning from these experiences,” he added.
Glimpses of Hope
Not all is doom and gloom however, and several experts see crypto’s turmoil as an industry undergoing necessary growing pains, which in turn, are triggering some much-needed regulations.
Mike Martin, head of content at Tastycrypto, called these changes necessary.
“We can draw parallels with the early days of the internet — remember the dot-com bubble? Just like then, we’re experiencing periods of intense volatility and vulnerability, which are essential for our growth and resilience, just as it was for the internet back in 2000,” said Martin.
In turn, this could set the stage for a more resilient space — and the newly approved Bitcoin ETFs are also helping boost confidence in the space, as it has sparked renewed interest.
“However, there is at least two-three years of a learning curve for both investment advisors and retail investors before crypto truly becomes a recommended allocation into a portfolio model,” said Andy LaPointe, author, advisor and founder of CryptoWisdom.com. “This means those working in the industry still have an uphill battle.”
Yet, as Martin further argued, long-term participants in the crypto world, like himself, view these fluctuations through a lens that’s focused on the future, adding that the ebbs and flows of this business, though unsettling, don’t sway them because they know this technology is simply too efficient to not only have a future but be the future.
“So, what are we as an industry doing in response to these challenges?” he queried. “We’re doing what Chicago did after the great fire of 1871 and what the United States did after the Crash of 1929: we’re rebuilding. We’re strengthening our foundations and our ecosystem to make them more robust than ever. 2023 was a Darwinian ‘survival of the fittest’ moment in crypto, and those of us still around are more resilient than ever.”
