For the last two months, the global cryptocurrency market cap has plunged from $1.7 trillion in the beginning of May to $929 billion. During the last two months, cryptocurrencies have lost tens of billions. The market cap is only $929 billion as of June 24.
When the market it completely depend on investors with not physical assets, it led to more rapid and rapid dismissals. Coinbase eliminated a significant number of employees (approx. 1,100) last month, but India continued its business without much impact than global average.
Coinbase made the difficult decision to reduce the size of their team, which affected 18% of their global workforce. Although this did impact their India branch, the cuts were much lower than the global average. Approximately 8% of their India branch was affected. Durgesh Kaushik is a senior director at Coinbase and is one of the first ones to respond via Twitter when situations arise with some branches across countries.
Other players like BlockFi and Crypto.com announced layoffs as well as a pause in all hiring in the cryptocurrency sector in May. According to media reports, May was the worst month for jobs losses in the cryptocurrency field. It had more job losses than the previous four months combined.
And this was the case even before taxes were implemented on cryptocurrency trading. After India announced a tax rate of 30% per transaction, Indian cryptocurrency trading saw a 40% drop. This number is based on data collected by Credit Rating for Exchanges, Blockchains and Coin Offerings (CREBACO).
The crypto sector has been riddled with risks, but nonetheless many investors are willing to bet against the odds. The sector experiences large crashes in every second year, then a spike when stock recovers and players are used to the fluctuations.
“A mild correction means more big shots in crypto and it will pass too”, say experts.
“A sign companies are confident, is when they lay off employees during the telling time of a recession,” said Sidarth Soganiez, founder and CEO of CREBACO. “And no marketing or advertising in India is going to be lucrative this year. You cannot find customers to invest.”
Overwhelming demand for blockchain-and crypto-related jobs in coming months as top three firms continue to hiring
While layoffs have occurred, some crypto companies are also hiring. Binance CEO Changpen Zhao has said that the company is planning to expand its presence and will continue to hire.
Zhao further explained that his company has not incurred any big costly setbacks yet as it’s not involved in promotional activities.
According to Mudita Chauhan, the head of human resources at the crypto exchange CoinDCX, the Indian crypto industry’s hiring pace is likely to grow in the current year. The Web 3.0 industry, like any other sector, requires a variety of roles to build the web3 ecosystem and survive the test.
The crypto exchanges WazirX and CoinDCX are bullish on hiring to prepare for a future that includes a crypto-market downturn.
In an interview with Business Insider India, Sricharan C, head of human resources at WazirX, said that the company is currently aggressively hiring professionals. It has a workforce over 250 professionals in 70+ cities and is hiring.
As part of a skill development program to update and optimize operations, the company is actively hiring.
CoinDCX is expecting to expand its workforce to 1,000 people and is extremely optimistic about hiring.
“We plan to build for scale and therefore, invest in functions that will strengthen our core. We are on the lookout for more such crypto enthusiasts to join our team and grow along with CoinDCX. We aim to continue being compliant and invest to keep up with changes and constantly improve our resources,” Chauhan told Business Insider India.
Related: What is happening to the Bitcoin? Why it is crashing?