During this bear market, some crypto firms cut jobs, while others strive for long-term growth - how are companies surviving these hard times?

While major layoffs have occurred in the crypto industry, they are nowhere near as severe as in the tech or other traditional sectors.

To put things into perspective, the total market capitalization of the digital asset industry has fallen from an all-time high of $3 trillion in November 2021 to its current levels of approximately $1.27 trillion, resulting in a loss ratio of more than 55%.

While the massive monetary downturn can be attributed to a variety of factors, including the ongoing Russia-Ukraine war, rising inflation figures and deteriorating macroeconomic conditions have had a significant impact on the crypto job landscape.

How bad is the situation?

We recently learned that Coinbase is slowing its hiring rate in order to reassess its financial strategies with claims of ensuring long-term growth. The company even revoked a large number of previously issued job offers, putting many international candidates' visas in danger.

Back in June, Gemini, a cryptocurrency exchange helmed by the Winklevoss twins, announced that the bear market had forced them to lay off nearly 10% of its employees. The brothers noted that as part of their first major headcount cut, Gemini had to shift its focus on products that are “critical” to the firm’s long-term vision and goals.

In addition to this, a crypto-friendly trading platform Robinhood fired 9% of its workforce in April, a decision that came at a time when the company’s stock offering had touched an all-time low. Lastly, one of the Middle East’s most prominent crypto trading ecosystems, Rain Financial, laid off over 12 employees, citing the global financial downturn as a reason for the same.

Not all is lost.

Despite the unfavorable market conditions, some companies have decided not to lay off their employees. For example, crypto exchange platform FTX announced that it will not only retain its existing employees but will also hire new personnel as the crypto winter continues.

The firm’s CEO Sam Bankman-Fried explained that his firm will continue to expand its operations because its growth blueprint has been well structured, unlike some other firms that experienced unfounded, unsustainable “hyper-growth” during last year’s bull run.

Moreover, Haru Invest is another company that aims to expand despite these tough times. The firm recently acquired an MSB license in the US, a key step for them to provide stable, safe, and compliant crypto investment opportunities, as stated by the CEO, Hugo Lee. In an effort to facilitate its initiatives, the company has also raised $4 million.

Amid the difficulties of the current bear market, it is also advantageous because the majority of rug projects are being phased out. As a result, because everyone is down, the legitimate ones will be able to focus solely on developing and building while disregarding the token's valuation. During bull markets, when everything was green, no one thought about building; instead, everyone thought about making a fortune, which was the incorrect mindset.