Demand for crypto talent drops, hiring to remain moderate in 2024

Most of the firms are betting big on the Web3 job market anticipating an increased adoption of blockchain technology in decentralised finance (DeFi) and non-fungible tokens (NFTs).

The chartbuster in 2021 and subsequent years, the cryptocurrency market has been coping with the evolving regulatory landscape in India since last year. This has had a direct impact on the talent hunt conducted earlier, resulting in a major drop in demand.

India witnessed the emergence of numerous blockchain and cryptocurrency start-ups. These start-ups were not only creating innovative solutions but were also driving demand for skilled professionals.

However, the demand for crypto has seen cycles of rise and fall over the last two years. According to data gathered by specialist staffing company Xpheno for Moneycontrol, the current active demand for crypto talent in the market is nearly one-third of what it was at the same time a year ago.

With just a little over 4,000 active openings in the market, the demand cycle is at a low phase as seen in 2020. In early 2023, 13,000 active job openings were available in the web3, blockchain, crypto and crypto-linked domains in India.

A similar trend was seen at the job portal foundit which noticed a drop of 43 percent in demand in December 2023 compared to the same period in 2022.

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Nearly half of the active demand for crypto talent comes from the information technology (IT) services cohort. The rest of the demand is spread across crypto start-ups, IT products, emerging technologies, and consumer and retail domains. BFSI, professional services, manufacturing and production sectors also contribute to the active demand.

Very few hiring

One of the primary challenges is the relatively limited pool of experienced crypto professionals in India. The industry is still in its nascent stages, and finding individuals with a significant track record in blockchain technology, cryptocurrency development and related fields can be a daunting task.

Besides, the regulatory landscape surrounding cryptocurrencies in India has been marked by uncertainty. This ambiguity deters experienced professionals from entering the market or may lead them to explore opportunities in more stable and regulated environments. Lack of clear guidelines can also slow down hiring processes as companies navigate compliance concerns.

“Despite the nearly 15-year life of the crypto domain, its mainstream visibility and talent-related attention is under a decade. Any expert talent journey in crypto is hence well below eight years. Also, the talent pool started on a very low base count due to the niche tech stack and has gained popularity over the last five years,” Kamal Karanth, Co-founder of Xpheno told Moneycontrol.

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Top executives from WazirX, Mudrex, Unocoin, Crypfi, Cashaa, and Shardeum told Moneycontrol that they are hiring but the majority of them did not reveal the number or timeline. Those who did, only targeted double-digit numbers.

“We are hiring only for replacement roles, and that too in tech teams. As the crypto bull market approaches, HR is planning how the scaling will take place,” said Rajagopal Menon, Vice President of WazirX.

He said tax deducted at source (TDS) had taken a toll on Indian exchanges, with transaction volume plummeting by almost 90 percent. “This has put a strain on all crypto companies, with restructuring happening across the industry and many smaller niche companies having to shut shop. Most of the affected people have gone back to traditional industries,” he said.

In demand roles

Despite a 41 percent decline in crypto-related job postings over the past year, foundit noticed that the cumulative demand for talent in the crypto market surged by 53 percent since December 2021.

According to Sekhar Garisa, CEO of foundit, the reason is the inherent potential of blockchain technology and its diverse applications beyond cryptocurrencies sustains the demand for skilled professionals in these specialised roles.

“Blockchain technology, fundamental to cryptocurrencies, holds promise beyond financial markets, driving demand for experts in development, security, and architecture for various applications like supply chain, e-governance, healthcare, and more,” he said.

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However, the compensation hasn’t changed much over the last year and showcases relatively stable trends considering the niche nature of the skill set and scarcity of talent.

What the future holds

Optimism has a hold on crypto firms when charting out the plan for 2024. Most of the firms are betting big on the Web3 job market anticipating an increased adoption of blockchain technology in decentralised finance (DeFi) and non-fungible tokens (NFTs).

“AI plays a crucial role in this growth by automating processes, enhancing security measures, and analysing large datasets, contributing to efficiency and innovation within the industry,” said Sathvik Vishwanath, Co-Founder and CEO of Unocoin.

Recognising the need for a skilled workforce in the crypto space, educational institutions and online platforms are introducing courses and training programmes focused on blockchain technology and cryptocurrency.

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Further, the decentralised nature of the crypto industry allows professionals in India to work on global projects without geographical constraints. The rise of remote work has opened up opportunities for Indian talent to collaborate with international teams and contribute to cutting-edge developments in the crypto space.

But market fluctuations do influence these.

“While the prices have recovered since the collapses of Terra and FTX, the market in general along with volumes from retail and institutional investors is yet to come back to pandemic time levels. The recent rise has been more based on speculation of Bitcoin ETF approvals and Bitcoin halving due in April 2024,” said Kumar Gaurav, Founder and CEO of Cashaa.