The recent turmoil in crypto markets has dissuaded some college students from entering the highly volatile industry, according to Fortune.
Engineers and developers who would have stepped into the crypto space for their first job are now reconsidering, citing the industry's instability, turbulence, and penchant for unpredictability.
"There's a lot of potential for [crypto] to be innovative, but, as I've learned the hard way, it can be pretty volatile and unpredictable," Ashutosh Ukey told Fortune after his Coinbase job offer was rescinded. "For the immediate future, I am kind of reluctant to go into crypto because it's a lot less stable than some of the other big tech sectors and industries."
Like many new hires, Ukey was offered a job at Coinbase, only to be told that his position was no longer available. During the recent hiring freeze, the company decided to eliminate over 1,000 positions, cutting 18% of its staff. Coinbase had once boasted a workforce as large as almost 6,000 employees, after starting last year with 1,250 workers.
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"While we tried our best to get this just right," Coinbase CEO Brian Armstrong said, "in this case it is now clear to me that we over-hired."
In a similar move, other crypto firms are also downsizing or laying off a significant chunk of their workforce. BlockFi fired 20% of employees recently, while rival exchange Gemini, owned by the Winklevoss twins, slashed 10% of jobs.
Overall, there has been a nearly 13.5% drop in crypto and Web3-related jobs, according to data from TrueUp, a firm tracking hiring in the tech sector. Although more than 10,000 jobs remain open in the crypto space, fewer college students are keen to bet on the burgeoning industry that has taken a beating.
But not everyone is ready to give up. Jongwon Park, 19, told Fortune that he is still pursuing opportunities. "Even if the ecosystem isn't thriving, I still love DeFi..
Infrastructure providers aren’t feeling the pinch,” said Park. “I’m still very optimistic about the development side in general.”
“One of the best times to get in is right after a crash,” echoed Solana Labs co-founder Anatoly Yakovenko, who found his footing after the dot-com bubble crashed. “Crypto’s probably the best choice for new grads right now.”