Felix Jauvin

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



As is the case with economic data these days, the devil is all in the details.



Today we received the latest jobs report, and the topline data looked fantastic.&nbsp;



<ul class="wp-block-list">
<li>Non-farm payrolls came in at 147k vs. consensus estimates of 100k.</li>



<li>The unemployment rate ticked down to 4.1%, below forecasts of an increase to 4.3%.</li>
</ul>



The 4.1% unemployment rate is much stronger than the FOMC’s recent estimates in their June Summary of Economic Projections, and likely takes any possibility of a July cut off the table:



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd6VYkw9H9OkljBOzVS4MyNfs4RtElua40P-Z6Sz7CXDn5oeASyZgAugdYNwfG-ImTYqyDareQL3bxdg5668MpFn-L_OFbRfH4eCTtsqaO-Jw4w0zR0iJvJIFog3GOgToRMcHF_QA?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:595px;height:auto"/></figure>



The key vector of what is driving this topline strength in the labor market is a decreasing labor force. This is due to plummeting immigration ever since Trump took office.&nbsp;



Looking at land border crossings, we can see these have cratered.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdlfY0CXLp81qEBLtC-4yVlrge3UiGXZ_LTJiqLxGgO-1PaLWBOkuOf1bjsZBHSDIq8IK4prdF0SO76oukiQfFjbLxy47ZBC6x-uxovHILoEJGPD0-qooChzmqoNCbie_MTcDBGsQ?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:603px;height:auto"/></figure>



One year ago, we saw this dynamic in reverse:



<ul class="wp-block-list">
<li>Huge levels of immigration under the Biden administration grew the labor force, which mechanically increased the unemployment rate, since it took time for those new entrants to get a job. And, in the meantime, those new entrants are considered unemployed in BLS data.</li>



<li>This was what caused the false-positive signal of <a href="https://blockworks.co/news/on-the-margin-newsletter-recession-signals">the Sahm rule</a> that led to the Fed <a href="https://blockworks.co/news/fed-interest-rate-cut-50-bps">cutting 50bps</a> in quick order. </li>
</ul>



Putting it together: In the same way that immigration was causing a mechanically weak labor market last September, we now see a mechanically strong labor market.&nbsp;



This dynamic shrouds what’s happening deeper in the data.&nbsp;



Private payrolls came in at 74k, below expectations of 105k. The reason for the significant upside surprise came from government payrolls, which surged to 73k — up from 7k the previous month:



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfraLfl9afNnyJrV7jVCi2IFIpLmglSap8hDY2-PON7tFvO0D7mioh_lZI2UcIq8mJvrF6bXCBrTiVJu1KVFCX8SWS6XPwQRST76luLVg9_kMn4nTcI8tL4tatY0sueK9nCqk2tFw?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:599px;height:auto"/></figure>



Looking at the industries that drove payroll growth, education and health services continue to bleed lower, which is notable, as these have been the primary driver of payroll growth in recent years.



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcs2_TRrkwx34Rf90yJW1y0EehQ7Ai2QIwd9ziu4us-ANbgJv9yIDXPW_-42jUNUgV3ocKAsYPeqxq68sPKR1hCPc5NNlNkJk9e5Khyj3oXTUODkw47xUj4PIIUPGYWhfNPswC0vw?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:610px;height:auto"/></figure>



This delicate balance in the labor market is mostly felt by those who are currently unemployed and finding it extremely difficult to get a new job.&nbsp;



Continuing jobless claims are grinding higher every week amid a labor market that punishes job seekers.&nbsp;



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfHReCM00OFu1rzuR5Y0qJXLPatfj-9wZ1zZZctO_7JTG62ShVRCX7MOh5bsjLMOnO3HhE1wDoAXHeivzHk-vTo9kTFITgxHDYtrhHKK9d_bUTpBdR_8lzfN192o_s_GmTyna9PMQ?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:620px;height:auto"/></figure>



What’s interesting is that the economy isn’t rolling over quite enough to trigger any meaningful layoff cycle. And so, we see that initial jobless claims continue to chop around aimlessly:



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfWaUr-f1yjYtUMaIdJkk7BJLHTeY__SohEvmGIsjNiNaEkztrMLw_IKrbaC6Qt2Qie6Ff9nC8SKgq2K5gPpy3ZtffxNBoTcHZpMfS2WsuPwt-J86UEfBIbYxqAD6XGmDtm6EGCrA?key=Hz-OnH6P0L1xfaCne1Hqvg" alt="" style="width:620px;height:auto"/></figure>



Putting this all together, we have a labor market that has some valid issues — but is not bad enough to trigger any sort of meaningful policy response.&nbsp;



It looks increasingly likely that the Fed will continue to <a href="https://blockworks.co/news/june-2025-fmoc-fed-interest">sit on its hands</a> and not make any meaningful move in either direction.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Economy

The labor market is sending false signals

Shalini Nagarajan

<div id="highlights-block_63035f9489888" class="highlights">
 <ul>
 <li>The lender took no measures to reduce headcount, the creditor committee said</li>
 <li>There’s no evidence that “key” employees would resign, they added</li>
 </ul>
 
</div>



Creditors of bankrupt Voyager don’t want the lender to pay retention bonuses to employees, arguing the firm hasn’t provided reasons why the payments are required.



They also raised issues with Voyager making no efforts to reduce its headcount while other firms like <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a>, <a href="https://cms.blockworks.co/bitpanda-to-slash-nearly-30-of-workforce-citing-recession-threat/" target="_blank" rel="noreferrer noopener">Bitpanda</a>, <a href="https://cms.blockworks.co/blockfi-initiates-voluntary-separation-program-to-further-trim-headcount/" target="_blank" rel="noreferrer noopener">BlockFi</a> and <a href="https://cms.blockworks.co/blockchain-com-slashes-25-of-workforce-cuts-exec-compensation/" target="_blank" rel="noreferrer noopener">Blockchain.com</a> have each laid off roughly 20%, a <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysb.312840/gov.uscourts.nysb.312840.316.0.pdf" target="_blank" rel="noreferrer noopener">filing</a> on Friday showed. Even after <a href="https://cms.blockworks.co/voyager-files-for-bankruptcy-days-after-freezing-withdrawals/" target="_blank" rel="noreferrer noopener">initiating bankruptcy</a> proceedings, Voyager still has 350 employees on payroll.



“The foregoing companies are still operating in the ordinary course of business, while the Debtors’ [Voyager] platform has been essentially frozen with no or minimal operations for the last seven weeks,” lawyers representing the committee wrote.



Their objection comes about three weeks after Voyager submitted a <a href="https://www.courtlistener.com/docket/63571949/212/voyager-digital-holdings-inc/" target="_blank" rel="noreferrer noopener">motion</a> requesting a judge to approve a “key employee retention plan” (KERP) costing $1.9 million.&nbsp;



Under that program, Voyager marked 38 employees as vital to the business due to “valuable institutional knowledge” that would be expensive to replace swiftly. They would execute accounting, cash and digital asset management, IT infrastructure, legal, human resources and other functions for the firm, according to the motion.



But the creditor committee isn’t convinced that the 38 key employees need retention bonuses, as Voyager provided no evidence that they could resign. Further, only 12 employees have voluntarily resigned since its bankruptcy filing, they pointed out.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“This lack of attrition is attributable to the current employment market in the cryptocurrency space as a result of the aforementioned industrywide layoffs,” they said.</blockquote>



A Voyager spokesperson declined to comment on the matter.



The committee argues that work at Voyager is now limited to only routine maintenance and updates. They believe these can be carried out by the current employee base as long as the attrition rate is low.



“First, given the downturn of the cryptocurrency industry as a whole, the job market is relatively barren,” the creditors said. “Second, given the recent reductions and layoffs across the industry, a bevy of recently-terminated professionals could fill their roles. The facts and circumstances do not support a KERP in these Chapter 11 Cases.”



A court hearing on the motion is scheduled to take place on August 24 at 10 am ET.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

bankruptcy

Voyager Creditors Object to Bankrupt Firm’s Plan to Reward Key Staff

Ben Strack

<div id="highlights-block_62f660a9674ad" class="highlights">
 <ul>
 <li>MeebitsDAO general manager takes over as Yuga Labs’ brand leader for the NFT collection</li>
 <li>Core Scientific reveals 10% headcount reduction on Thursday earnings call</li>
 </ul>
 
</div>



Hedge fund figure <a href="https://www.linkedin.com/in/bluemacellari/" target="_blank" rel="noreferrer noopener">Blue Macellari</a> joined T. Rowe Price as its head of digital assets strategy, she <a href="https://www.linkedin.com/feed/update/urn:li:activity:6963223028855926784/" target="_blank" rel="noreferrer noopener">revealed on LinkedIn</a> Thursday.&nbsp;



“This is what adoption looks like,” Macellari wrote in the post.



Macellari spent the last four-plus years as a managing partner at crypto hedge fund firm Dunamis Trading, according to her profile. There, she launched and co-managed Dunamis’ crypto market-neutral vehicle and formulated company strategy.



T. Rowe Price managed $1.3 trillion in assets, as of June 30. A company survey published in April found that <a href="https://cms.blockworks.co/t-rowe-price-survey-40-of-kids-think-crypto-is-future-of-investing/" target="_blank" rel="noreferrer noopener">40% of children believe crypto is the future of investing</a>. A T. Rowe Price spokesperson told Blockworks at the time that given the size of digital asset markets, their impact on capital markets cannot be ignored.



Crypto exchange OKX appointed <a href="https://www.linkedin.com/in/frederica-tompkins/" target="_blank" rel="noreferrer noopener">Frederica Tompkins</a> as director of brand marketing and Kim Murphy as director of events.



Tompkins joins OKX from the luxury and fast-moving consumer goods sectors, having worked with brands such as Chanel and Ralph Lauren. Murphy comes from the worlds of event production and philanthropy, where she helped organize concerts, conferences and boutique celebrations.&nbsp;



Tompkins and Murphy join during a year that has seen OKX strike partnerships with Manchester City Football Club, the <a href="https://cms.blockworks.co/crypto-exchange-okx-inks-f1-mega-deal/" target="_blank" rel="noreferrer noopener">McLaren Racing Formula One team</a> and the Tribeca Festival. The exchange appointed Rachel Conlan as its global head of brand marketing and partnerships earlier this year.



OKX’s hiring of female leaders coincides with its joint <a href="https://www.okx.com/academy/en/global-blockchain-industry-talent-insights-okx-linkedin-report" target="_blank" rel="noreferrer noopener">report</a> with LinkedIn showing <a href="https://cms.blockworks.co/theres-a-shortage-of-tech-and-female-crypto-talent-report/" target="_blank" rel="noreferrer noopener">a shortage of tech talent</a>, as well as female professionals, in the blockchain industry. The analysis found the sector had about four times more men than women, as of June.&nbsp;



Leading exchange Binance hired <a href="https://www.linkedin.com/in/karl-long-06903220/?originalSubdomain=ie" target="_blank" rel="noreferrer noopener">Karl Long</a>, WisdomTree Asset Management’s former director of digital assets and commodity operations, to spearhead its operations in Ireland, Irish Independent <a href="https://www.independent.ie/business/irish/binance-appoints-former-state-street-executive-as-head-of-its-irish-operation-41895702.html" target="_blank" rel="noreferrer noopener">reported</a> Monday.&nbsp;



A Binance spokesperson declined to comment.&nbsp;



Long joined WisdomTree in February after working as a managing director of operations at State Street for nearly a decade, according to his LinkedIn profile.&nbsp;&nbsp;



The executive is based in Dublin, Ireland, his profile indicates. Binance CEO Changpeng Zhao <a href="https://www.reuters.com/technology/binance-ceo-says-ireland-is-part-its-hq-plans-2021-10-07/" target="_blank" rel="noreferrer noopener">told Reuters</a> last year that the exchange was considering Ireland and France as potential headquarters and had <a href="https://cms.blockworks.co/binance-looks-to-settle-on-ireland-as-global-headquarters/" target="_blank" rel="noreferrer noopener">registered a new entity in Ireland</a> the following month.



<h3 class="wp-block-heading">Newly-minted NFT execs for Yuga Labs and Dibbs</h3>



Yuga Labs, the firm behind Bored Ape Yacht Club, named <a href="https://www.linkedin.com/in/dannygreene82/" target="_blank" rel="noreferrer noopener">Danny Greene</a> to fill its newly created role of brand lead for <a href="https://meebits.app/" target="_blank" rel="noreferrer noopener">Meebits</a> after Greene spent the last eight months as general manager of the MeebitsDAO.&nbsp;&nbsp;



Meebits is an NFT collection with 20,000 characters and a trading marketplace. Yuga Labs <a href="https://mirror.xyz/0xEc9f53fA69682833FBd760C104B5D61aE29221E0/Km81y6Mc3O5LzS0wnrghVIV0HnZgLOd4wsnfcGw3_2I" target="_blank" rel="noreferrer noopener">acquired the commercial rights to Meebits</a> and CryptoPunks from Larva Labs in March.&nbsp;



&#8220;The Meebits collection stands out not only for the artistic achievement but also because it was the first 3D avatar designed for the interoperable metaverse and has always been a pillar of diversity and inclusion in web3,” Greene said in a statement. “Already you can play with your Meebit in over 20 virtual worlds, apps, and games — and this is just the beginning.”&nbsp;



Sports NFT (non-fungible token) platform Dibbs has added leaders as it seeks to grow beyond a collectibles marketplace to a tokenization and custody platform for intellectual property owners and collectors.&nbsp;



Dibbs hired <a href="https://www.linkedin.com/in/benplomion/" target="_blank" rel="noreferrer noopener">Ben Plomion</a> as its chief marketing officer and <a href="https://www.linkedin.com/in/william-plumeri-0479141ab/" target="_blank" rel="noreferrer noopener">Bill Plumeri</a> as its chief compliance officer.



Plomion spent seven years at contextual intelligence company GumGum, where he served as chief growth officer. Plumeri most recently led the global institutional compliance program at crypto lender BlockFi.



Prior to BlockFi, Plumeri was the director of compliance at digital asset securities unit Securitize, where he designed and implemented a compliance program focused on tokenizing traditional securities on the blockchain. He has held other leadership roles at crypto exchange Gemini, as well as JPMorgan and BNP Paribas.



<h3 class="wp-block-heading">Luno snags policy lead from fintech unicorn Revolut</h3>



Institutional crypto trading tech provider Talos hired <a href="https://www.linkedin.com/in/nealpawar/" target="_blank" rel="noreferrer noopener">Neal Pawar</a> as a strategic adviser.&nbsp;



Pawar is the chief operating officer of Qontigo, an affiliate of Deutsche Börse Group that offers index analytics and risk solutions. He was formerly chief investment officer of UBS’ wealth management group and a group CIO at Deutsche Bank.



Pawar joins Jennifer Hill, ex-chief financial officer of Merrill Lynch; David Cushing, former director of global trading at Wellington; and Tim Grant, Galaxy Digital’s head of Europe, on the company’s advisory board.&nbsp;



London-headquartered Luno hired <a href="https://www.linkedin.com/in/tommytudehope/" target="_blank" rel="noreferrer noopener">Thomas Tudehope</a> as its global head of public policy to deepen its crypto investment app’s relationships with industry regulators, at a time when governments are looking to fix their eyes on the sector.



Founded in 2013, Luno was acquired by Digital Currency Group in 2020. Luno’s flagship app of the same name, has more than 10 million customers across roughly 40 countries, according to company figures.



Tudehope was most recently head of public affairs at Revolut, where he expanded the company’s public policy team and led political engagement. He was also formerly a senior adviser to former Australian Prime Minister Malcolm Turnbull.



Decentralized finance-focused UK firm AQRU appointed <a href="https://www.linkedin.com/in/digby-try-3b85329/?originalSubdomain=uk" target="_blank" rel="noreferrer noopener">Digby Try</a>, the company’s co-founder, as its chief commercial officer.



Before becoming co-founder and chief operating officer of AQRU last October, Try previously worked as head of global sales at banking and payments platform OpenPayd and as a vice president of sales for EMEA at Currencycloud, which Visa acquired last year.



<a href="https://www.linkedin.com/in/kameliagankova/" target="_blank" rel="noreferrer noopener">Kamelia Gankova</a>, formerly managing director at Crypto.com’s Bulgarian outpost, is now the COO of AQRU subsidiary Accru Finance.



Gankova has also served as director of customer service at online payments company Paysafe.&nbsp;



<h3 class="wp-block-heading">In case you missed it</h3>



Core Scientific <a href="https://cms.blockworks.co/crypto-miner-core-scientific-downsizing-after-840m-impairment-charge/" target="_blank" rel="noreferrer noopener">reduced its headcount by 10%</a> in the second quarter as part of cost-cutting measures to deal with market turmoil, the top crypto miner revealed Thursday.



Galaxy Digital CEO Mike Novogratz said on an earnings call earlier in the week that it did some “selective shrinking” of its team in the second quarter. Galaxy, a digital asset management firm, <a href="https://cms.blockworks.co/galaxy-digitals-stock-rises-despite-posting-555m-q2-net-loss/" target="_blank" rel="noreferrer noopener">posted a $555 million net loss</a> during the three-month period.&nbsp;&nbsp;



Novogratz said the company is seeking to boost its headcount from 375 people to more than 400 by the end of the year. A Galaxy spokesperson declined to comment.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Binance

Latest in Crypto Hiring: T. Rowe Price Adds Digital Assets Strategy Head

Casey Wagner

<div id="highlights-block_62ed6fe7dfe35" class="highlights">
 <ul>
 <li>July’s jobs data crushed expectations</li>
 <li>Additional 75 basis point hikes, or more, are likely to come, analysts said</li>
 </ul>
 
</div>



Jobs data released Friday showed strong growth in the workforce and a decline in unemployment, suggesting a Federal Reserve policy pivot may not come in September.&nbsp;



The US economy added 528,000 jobs in July, more than doubling analysts’ expectations, according to <a href="https://www.bls.gov/news.release/pdf/empsit.pdf" target="_blank" rel="noreferrer noopener">data</a> from the Bureau of Labor Statistics. The unemployment rate also marginally dipped from 3.6% to 3.5% last month.&nbsp;



The Fed has kept an eye on labor statistics in recent months with the hope of gauging the odds of a recession. Strong jobs data will likely validate <a href="https://cms.blockworks.co/fed-raises-rates-75-basis-points-again/" target="_blank" rel="noreferrer noopener">Fed Chair Powell&#8217;s recent rate-hiking moves</a>, analysts said.&nbsp;



“Numbers this strong push back strongly against the idea that we’re close to peak inflation or peak hawkishness,” Tom Essaye, founder of Sevens Report Research, wrote in a note Friday. “The looming CPI report could keep any market fallout from being too intense (as hope for a soft CPI should support assets) but we’d still expect moderate declines.”



Stocks traded sideways Friday, while cryptocurrencies extended recent gains. The S&amp;P 500 was trading down 0.5% and the tech-heavy Nasdaq lost about 1% Friday late in the trading session. Bitcoin and ether gained 0.8% and 4.2%, respectively.&nbsp;



Friday’s jobs data comes a day after <a href="https://cms.blockworks.co/blackrock-to-offer-institutional-clients-crypto-via-coinbase/" target="_blank" rel="noreferrer noopener">asset manager BlackRock</a> said it would begin facilitating institutional cryptocurrency trading through Coinbase’s prime brokerage service. The exchange’s stock rallied <a href="https://cms.blockworks.co/coinbase-stock-has-ballooned-nearly-60-in-5-days/" target="_blank" rel="noreferrer noopener">more than 30%</a> Thursday before paring gains.&nbsp;



“There was, what has become, a rare good news headline for bitcoin on Thursday after Coinbase was chosen to provide crypto services to Blackrock&#8217;s clients,” Craig Erlam, a senior market analyst at OANDA, wrote Friday. “This is a big show of support for an asset class that&#8217;s had a frankly terrible year so far. But clearly, there remains strong demand for cryptos which bodes well for the future.”



It is hard to say how long the turnaround for COIN and the broader crypto market will last, analysts agreed, but on the whole, it shows the industry moving in a positive direction.&nbsp;



“While small and retail investors have been virtually shaken out of the space over the past few months, institutions are now making a comeback,” said Mikkel Mørch, executive director at digital asset investment fund ARK36. “Evidently, big players like BlackRock see neither the recent slump in prices nor the waves of bankruptcies among crypto companies as evidence that it’s over for cryptocurrencies or that there is something fundamentally wrong with this asset class.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Coinbase

As Crypto Rallies on Strong Jobs Data, Analysts Speculate on Powell’s Next Move

Bessie Liu

<div id="highlights-block_62a8dfac18ec9" class="highlights">
 <ul>
 <li>“We see this as a great time to bring on top talent,” Yi He, co-founder of Binance, told Blockworks</li>
 <li>“The companies that have raised the most capital and have hired the most staff are now realizing they were over-exuberant and are paring back,” one crypto exec said</li>
 </ul>
 
</div>



One day after cryptocurrency firm BlockFi <a href="https://cms.blockworks.co/cryptocurrency-lender-blockfi-set-to-cut-staff-by-a-fifth/" target="_blank" rel="noreferrer noopener">moved</a> to lay off 20% of its staff, over a thousand <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a> employees woke up to find their workplace access cut and an email informing them they were part of the 18% of staff let go due to tough industry conditions.



“Although I understand that difficult decisions have to be made by companies during these exceptionally challenging economic downturns, the bitter pill doesn’t get any easier to swallow,” Brett Murtagh, former executive assistant at Coinbase, shared on <a href="https://www.linkedin.com/posts/brett-murtagh_opentonewopportunities-laidoff-layoffs-activity-6942461980507078656-jTqo?utm_source=linkedin_share&amp;utm_medium=member_desktop_web" target="_blank" rel="noreferrer noopener">LinkedIn</a>.&nbsp;



This is not the first time Coinbase has taken extreme measures since its reported <a href="https://cms.blockworks.co/coinbase-stock-plummets-as-crypto-exchange-posts-430-million-loss/" target="_blank" rel="noreferrer noopener">$430 million loss</a> in this year’s first quarter. The top US crypto exchange announced it would be <a href="https://cms.blockworks.co/coinbase-latest-crypto-firm-to-cut-costs-amid-market-downturn/" target="_blank" rel="noreferrer noopener">rescinding job offers</a> just two weeks ago.



“​​This was devastating to me as I was going to start on a STEM OPT VISA and I am only allowed a certain number of days on unemployment. I had even rejected three PhD offers and declined to interview at other companies since I had accepted Coinbase&#8217;s offer in mid-March. All of these other options are no longer available to me,” Ashutosh Ukey <a href="https://www.linkedin.com/in/ashutosh-ukey-971422124/recent-activity/shares/" target="_blank" rel="noreferrer noopener">said on LinkedIn</a>.&nbsp;



Other prominent crypto companies have laid off employees in recent weeks, too. Gemini, founded by the Winklevoss twins, <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">let go</a> of an estimated 100 employees — roughly 10% of its staff — while Singapore-based cryptocurrency exchange Crypto.com <a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">slashed</a> 260 people from its workforce, a 5% reduction.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“The companies that have raised the most capital and have hired the most staff are now realizing they were over-exuberant and are paring back,” Charlie Silver, CEO of Permission.io, told Blockworks. “The early capital went into companies that are all transaction-based, and in a bear market, transactions slow down considerably.”</blockquote>



<a href="https://www.cbinsights.com/research/report/blockchain-trends-2021/">CB Insights research</a> shows that of the $25.2 billion in venture capital money poured into the crypto market in 2021 the majority was funneled toward exchanges and layer-1 protocols, with a focus on trading, service exchange, investing and crypto-asset lending.



“Way too much capital went into exchanges, layer-1 blockchains, market makers and crypto lenders. I believe we have way too much capacity here. The next wave of capital will go into real-world applications that make crypto easier to use,” Silver said.



Despite the market downturn, Silver believes the crypto industry will continue to grow: “The bear market will not affect the real builders. Price action should not be meaningful to the companies that are building useful applications and are creating valuable infrastructure.”



As layoff announcements become the new normal, many working in crypto are becoming overwhelmingly concerned about job security — but a handful of exchanges have remained positive.



“The crypto space is still in its early stages, and bull markets tend to care more about price while bear markets have more value-conscious teams that continue to build the industry. We see this as a great time to bring on top talent,” Yi He, co-founder of Binance, told Blockworks.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

BlockFi

Job Security a Growing Concern as Crypto Layoffs Continue

<div id="highlights-block_629a39dde9916" class="highlights">
 <ul>
 <li>Bitget adds managing director to help connect centralized and decentralized finance</li>
 <li>Fidelity Digital Assets looks to up hiring, while Coinbase expects to slow additions</li>
 </ul>
 
</div>



Crypto technology provider Fireblocks hired a former Bank of England executive as its new CBDC and market infrastructure director.



Varun Paul, who will serve on Fireblocks’ corporate strategy team, was at the Bank of England for 14 years and ultimately led its fintech hub and future of finance initiatives.



&#8220;From CBDC [central bank digital currency] developments to the tokenization of traditional financial assets, bridging digital assets and blockchain technologies to traditional institutions at scale will require strong working relationships with the central bank community,” Fireblocks Head of Corporate Strategy Adam Levine said in a statement.&nbsp;



Derivatives exchange Bitget appointed Gracy Chen as a managing director. She previously held executive roles at XRSPACE, a virtual reality technology company headquartered in Taipei.&nbsp;&nbsp;



Bitget reported its all-time high derivatives trading volume of $8.7 billion earlier this year — a 300% increase from the year before.



Chen noted in a statement that she is an “avid investor” in crypto and seeks to help Bitget connect centralized and decentralized finance, “resulting in an expansive bridge to the vast web of crypto.”



Digital Entertainment Asset (DEA), a blockchain gaming and entertainment company based in Singapore, named Tatsuya Kohrogi as its head of global business.



Known for its gaming and decentralized finance (GameFi) platform PlayMining, which allows players to mine crypto while they play games, DEA has 2.4 million players worldwide. The company was founded in 2018 and is developing play-to-earn game JobTribes and an NFT marketplace.



Kohrogi served as a partner manager at Meta (formerly Facebook), where he worked with ad agencies in Japan. Prior to Meta, he was at SoftBank, where he held investment strategy, business development, sales management and digital marketing roles during his seven years at the company.



“As we begin to expand our business across Asia, Europe and North America, we are confident each region will grow under Tatsuya&#8217;s leadership,&#8221; DEA CEO Naohito Yoshida said in a statement.



In case you missed it, Fidelity Investments’ digital asset arm said it is <a href="https://cms.blockworks.co/fidelity-digital-assets-to-double-headcount/" target="_blank" rel="noreferrer noopener">seeking to double its headcount</a> by the end of the year as it pushes to expand its support for assets other than bitcoin. The expansion would include hiring about 210 workers across client services, custody operations, execution services and technology building roles, a spokesperson told Blockworks earlier this week.&nbsp;&nbsp;



Others are slowing down hiring amid the crypto market downturn.&nbsp;



Coinbase Chief People Officer L.J. Brock wrote in a <a href="https://blog.coinbase.com/update-on-hiring-plans-bcedfa634989" target="_blank" rel="noreferrer noopener">company post</a> that the exchange has decided to take more “stringent measures” to <a href="https://cms.blockworks.co/coinbase-latest-crypto-firm-to-cut-costs-amid-market-downturn/" target="_blank" rel="noreferrer noopener">slow its headcount growth</a> in hopes of navigating uncertain waters.



Gemini founders Tyler and Cameron Winklevoss said in a Tuesday memo to employees that the company <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">expects to cut 10% of its staff</a> due to the ongoing crypto downturn, as well as macroeconomic and geopolitical factors.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Adam Levine

Latest in Hiring: Ex-Bank of England Exec Jumps Into Crypto

<div id="highlights-block_62991102eb399" class="highlights">
 <ul>
 <li>By combining technology and ideology, Web3 is attracting big tech’s top talent</li>
 <li>94% of crypto investors are Gen Z and Millennials, and many believe that Web3 will play a significant role in their future</li>
 </ul>
 
</div>



Just as Big Tech companies lured top talent away from Wall Street in the early 2000s, today’s Web3 companies are catching the attention of senior executives in the tech industry.&nbsp;



Google’s former vice president, Surojit Chatterjee, now serves as Coinbase’s chief product officer. Amazon’s Pravjit Tiwana left his position as general manager of AWS Edge Services to become the chief technology officer at Gemini. Lyft’s former chief financial officer, Brian Roberts, joined non-fungible token (NFT) marketplace OpenSea, and the former head of gaming at YouTube now leads Polygon Studios as its CEO.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I’ve never felt this connected to a community of builders like the crypto/web3 one. I’m not talking about folks who are in it for a quick speculative win. I’m talking about people who want to rebuild the internet’s infrastructure to move value and power in the hands of people.&mdash; David Marcus (@davidmarcus) <a href="https://twitter.com/davidmarcus/status/1486160772296101889?ref_src=twsrc%5Etfw">January 26, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Perhaps the most well-known of them all is Twitter’s Jack Dorsey, who has now stepped down from his position as the company’s CEO to focus on his crypto-oriented payments company, Block (formerly known as Square).



Senior executives are not the only ones moving into the space. <a href="https://www.stilt.com/blog/2021/03/vast-majority-crypto-buyers-millennials-gen-z/" target="_blank" rel="noreferrer noopener">Studies</a> reveal that 94% of crypto investors are Gen Z or Millennials, a demographic that <a href="https://www.investopedia.com/younger-generations-bullish-on-cryptocurrencies-5223563#:~:text=Generation%20Z%20is%20close%20behind,and%20ahead%20of%20mutual%20funds." target="_blank" rel="noreferrer noopener">skews toward a view</a> of cryptocurrency as a retirement asset and perhaps a career option.&nbsp;



“The most attractive thing about working for a crypto company is obviously the opportunity to work on the forefront of bleeding-edge&nbsp;[innovation]. We have heard many times before that the space right now is akin to what the internet was in the late 1990s or early 2000s,” Duy Cao, senior consultant at CryptoRecruit told Blockworks. “A lot of us were too young back then to capitalize on the opportunity or to meaningfully contribute to an exciting space.”



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Crypto is the once-in-a-lifetime opportunity industry of our generation,” Cao said.&nbsp;&nbsp;</blockquote>



Although Web3 can appear to be an exciting area to explore, the crypto market is also known to be quite volatile. Recent inflation rises and stock market downturns have led the bitcoin and ether market caps to decline by over 50% over the past six months. TerraUSD’s crash further crushed the market, wiping off $200 billion in just a day.&nbsp;



“Recruiting has seemed to <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">slow down a little bit</a>. We don’t get as many incoming leads as say six months ago,” Cao said, adding that despite this, “some of the best projects are built during bear markets, whilst the hot air projects tend to disappear.”



The market downturn has not yet deterred venture capitalists from investing in the space. Andreessen Horowitz last week <a href="https://cms.blockworks.co/andreessen-horowitz-launches-largest-crypto-fund-ever/" target="_blank" rel="noreferrer noopener">went ahead</a> with the previously planned launch of its $4.5 billion mega fund, targeting Web3 startups from decentralized finance (DeFi) and social media to gaming and decentralized autonomous organizations (DAOs), among others.



Binance Labs, the venture capital arm of cryptocurrency exchange company Binance, <a href="https://cms.blockworks.co/binance-launches-500m-web3-blockchain-fund-to-drive-tech-adoption/" target="_blank" rel="noreferrer noopener">also ann</a><a href="https://cms.blockworks.co/binance-launches-500m-web3-blockchain-fund-to-drive-tech-adoption/">ounced</a> its plans to allocate $500 million to blockchain projects in incubation, early-stage and late-stage growth startups.&nbsp;



Compared to the 2017-18 ICO craze, Cao said, “this time around it&#8217;s very different — there is more clarity around regulatory and compliance procedures, more institutional adoption and most importantly, there is a lot more money coming in from VCs.”



As a result, Web2 veterans are flocking to an industry in need of their experience and guidance, he said.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Get the news in your inbox. Explore Blockworks newsletters:



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/thebreakdown">The Breakdown</a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forwardguidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch">0xResearch</a>: Alpha directly in your inbox.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/supplyshock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

big tech

Are People Leaving Their Tech Jobs for Web3?

Liz Coyne

In the weekly roundup episode of Blockworks&#8217; podcast &#8220;<a href="https://www.youtube.com/watch?v=dTRBGGD789Y&amp;list=PLvER9nHSRN3xVs_p-dl7L7K_ZgL6lSudu&amp;index=64" target="_blank" rel="noreferrer noopener">On the Margin</a>,&#8221; Mike and Mark dig deep into retirees leaving the workforce at an accelerated rate, and look at the jump in wages in the banking sector.



They also take a look at high yield spreads in China, emerging market funding stress and a comprehensive index called the OFR Financial Index, which tracks a broad range of categories (credit, funding, equity valuations, volatility, etc&#8230;).



Finally, they review the 20-day moving average of call options traded, which is spiking, and discuss their own personal experience in crypto and what has made some investors successful and others not so.



Watch the full episode below! 👇



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Wages Jump, Signs of Stress in Emerging Markets, Skeuomorphism in Crypto | Weekly Round Up" width="1024" height="576" src="https://www.youtube.com/embed/dTRBGGD789Y?list=PLvER9nHSRN3xVs_p-dl7L7K_ZgL6lSudu" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
</div></figure>



&#8220;On the Margin&#8221; is a two-part show. Once a week, Mike interviews industry experts, and then at the end of the week, he is joined by co-host Mark Yusko where they break down the top crypto and macro stories. Episodes go live every Wednesday and Saturday morning.



Subscribe to &#8220;On the Margin&#8221; today on <a href="https://podcasts.apple.com/us/podcast/lyn-alden-explains-connection-between-inflation-bitcoin/id1558223079?i=1000513411286" target="_blank" rel="noreferrer noopener">Apple</a> or <a href="https://spoti.fi/3bTa9uw" target="_blank" rel="noreferrer noopener">Spotify</a>, or watch episodes on <a href="https://youtube.com/playlist?list=PLvER9nHSRN3xVs_p-dl7L7K_ZgL6lSudu" target="_blank" rel="noreferrer noopener">YouTube</a>.



Are you a UK or EU reader that can&#8217;t get enough investor-focused content on digital assets? <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a> in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.