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How miserable is it to work in crypto right now and is the money still worth it?
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The last few years have been extremely difficult for the crypto ecosystem. Scandals, collapses, losses and lawsuits have marred the industry, leading to a loss of confidence in the space – and a loss of funds for many. Even though 2023 went better, the trial of former FTX CEO Sam Bankman-Fried – found guilty of all seven criminal charges against him in November – coupled with the fact that many assets are still struggling to regain ground, has created a somewhat lukewarm environment.
While the industry is still reeling from these developments, 2024 appears to be off to a good start, particularly with the recent and highly anticipated Securities and Exchange Commission (SEC) approval of Spot. Bitcoin exchange-traded funds (ETFs), which many consider a legitimization of the space and the holy grail of crypto.
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Yet for those working in crypto – and its wider ecosystem – the journey has proven to be bumpy, even if there are some glimmers of hope, with some experts saying that “it doesn’t can only go up from here.”
To put this in context, in December, crypto job postings on LinkedIn were down 57% year-over-year, but that’s less than the 71% year-over-year decline in November, according to Bloomberg.
A long bear market
Phillip Shoemaker, executive director of Identity.coma non-profit organization providing decentralized identity verification, said that although it knew the recession was going to be long and had taken a conservative approach, “putting money in the bank and such”, he still didn’t expect this bear market to happen. be as long as it has been.
“Obviously SBF did us a great disservice by inviting the regulators and then making them really angry because he stabbed them in the back by being a fraud,” Shoemaker said. “There was a lot of discontent in the space after FTX, and the regulators brought the heat. But regulations must be put in place. I’m more concerned that good crypto companies are simply failing in this environment, but it’s time to stay in your lane, work, and, well, keep building. The bull market will return – it’s a question of when, not if.
A radical change
For some participants, working in crypto after FTX means working in a landscape that has “changed dramatically.”
For example, Tayler McCracken, editor-in-chief, Currency Officesaid the aftermath of FTX’s collapse, the SBF lawsuit and other high-profile setbacks have significantly changed the industry’s atmosphere.
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“The once strong interest has waned, as evidenced by decreased engagement with our content and a notable drop in job applications. Conversations have shifted from enthusiastic curiosity about joining the crypto world to cautious inquiries about its viability,” McCracken said.
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 with a firm belief in crypto’s potential 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
However, it’s not all doom and gloom and several experts see the crypto turmoil as an industry facing necessary growing pains, which in turn are triggering much-needed regulations.
Mike Martin, Head of Content at Tastycryptocalled these changes necessary.
“We can draw parallels to the early days of the internet – remember the dotcom bubble? Just as in those times, we are experiencing periods of intense volatility and vulnerability, which are essential to our growth and resilience, just as was the case for the Internet in 2000,” Martin said.
In turn, this could pave the way for a more resilient space – and the newly approved Bitcoin ETFs are also helping to build confidence in the space, as they have sparked renewed interest.
“However, it will take at least two to three years of learning curve for investment advisors and retail investors before crypto truly becomes a recommended allocation in 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 ahead. »
Yet, as Martin further explained, longtime players in the crypto world like himself view these fluctuations through a future-focused lens, adding that the ebbs and flows of this activity, although troubling, do not influence them because they know that this technology is simply too effective to not only have a future, but also to be the future.
“So what are we doing as an industry to respond to these challenges? ” he asked. “We are doing what Chicago did after the great fire of 1871 and what the United States did after the crash of 1929: we rebuild. We are strengthening our foundations and our ecosystem to make them more robust than ever. 2023 has been a Darwinian moment of “survival of the fittest” in crypto, and those of us who are still here are more resilient than ever.
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This article was originally published on GOBankingRates.com: How miserable is it to work in crypto right now and is the money still worth it?