In the first half of a week of panic in the cryptocurrency industry, all the news was focused on what could go wrong with weak companies.
In the second half, however, the story seems to shift to what companies with strong fundamentals can do, and are doing, to thrive in a weakened market.
While major cryptocurrency exchanges Coinbase, Crypto.com, and BlockFi announced big layoffs earlier in the week, competitors Binance and Kraken went the other way, announcing plans to accelerate hiring.
See Also: Super Bowl Curse Coming For Crypto As Layoffs Rise
The outspoken CEO of Binance, the world’s largest cryptocurrency exchange, indulged in some fundamentals-focused bluster on June 15 with a message on Twitter. mail announcing plans to hire 2,000 new employees.
“It wasn’t easy to say no to Super Bowl ads, stadium naming rights, big sponsor deals a few months ago, but we did it,” said Changpeng “CZ” Zhao. “Today, we are hiring for 2,000 open positions for #Binance.”
And cross-chain payments-focused blockchain developer Polygon told CoinDesk today (June 16) that it was adding around 50 positions.
Read More: PYMNTS Blockchain Basics Series: What is Polygon? An Ethereum killer hedges his bets
living what is preached
Coinbase, which just announced 1,100 layoffs, spent roughly $13 million on a 60-second SuperBowl ad. Crypto.com, which is laying off 5% of its workforce, some 260 people, spent a staggering $700 million on a 20-year naming rights deal for the arena that is home to the Los Angeles Lakers, among other equipment.
It wasn’t easy saying no to Super Bowl ads, stadium naming rights, big sponsor deals a few months ago, but we did it.
— CZ 🔶 Binance (@cz_binance) June 15, 2022
Interestingly, both Zhao and Kraken CEO Jesse Powell made many of the same points as Coinbase CEO Brian Armstrong on the company’s Q1 earnings call last month, when he said the company planned to continue trading. hiring despite dismal results.
“We’re very confident that we could choose profitability over reinvesting in the business,” Armstrong said on May 11. “We believe that investing now is key to our future.” A month later, the leading US cryptocurrency exchange announced it was cutting 18% of its staff.
See Also: Coinbase May Be Undeterred By 80% Drop, But Investors Are Clearly Affected
money to spend
Binance sees “this time as an opportunity to gain access to some of the best talent in the industry,” Zhao told CoinDesk. year-long declining market… We are going to have a very active pipeline in the next couple of months.”
He added, “fresher markets offer the best opportunity for organizations to invest in or acquire large projects at a more favorable price,” prompting a Twitter commenter to point out that Binance acquired, and extended, the leading crypto asset price in the industry. CoinMarketCap tracking website during the last bear market.
“CMC has worked pretty well so far,” Zhao replied, adding a smile emoji to the post.
As for Kraken, a June 15 blog post announced a “global hiring push,” saying bear markets “are fantastic for weeding out applicants chasing the hype of true believers in our mission,” as well as aligning its “internal culture around a whole”. of shared values that we feel will keep us agile, focused and competitive.”
Speaking of its “commitment to a crypto-first culture,” the Kraken post defined that mission as “providing financial freedom and inclusion to the billions of people suffering from financial exclusion, hyperinflation, and a broken system… It’s time to think about taking more of your paycheck in bitcoin, because the fundamentals have only gotten better.”
Of course, it’s worth noting that unlike Coinbase, neither has shareholders to appease.
Register here for daily updates on all PYMNTS crypto coverage.