“A bloodbath.” Nansen CEO shares his prediction for crypto startups for 2023

Alex Svanevik believes that most projects will run out of money after the 2021-2022 seed rounds, and some will be bought by next year

12.12.2022 - 09:00

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What’s new? Alex Svanevik, CEO of research firm Nansen, said that 2023 will be “a bloodbath” for cryptocurrency startups. He attributed this to the fact that most projects will run out of money after seed funding rounds in 2021-2022, and some will be bought by next year. According to Svanevik, some of these companies are doing new rounds while getting 80% less money than before.

I think 2023 will be a bloodbath for crypto startups:1. Most ‘21/22 seed startups run out of money2. Some get acquired3. A few raise new rounds (>80% downrounds)4. Tech salaries come down5. Tech job titles deflate6. VCs invest in other sectors (AI etc)— Alex Svanevik 🐧 (@ASvanevik) December 12, 2022

What else did Svanevik write? The head of Nansen also believes that 2023 will be a tough year for crypto projects as tech salaries continue to decline. In addition, Svanevik noted that venture capital funds now prefer to invest in other sectors, such as artificial intelligence.

Against the backdrop of a prolonged bear market, many crypto companies have begun laying off employees. In early November, for example, the BitMEX exchange laid off 30% of its staff, investment firm Galaxy Digital laid off 20%, and venture capital firm Digital Currency Group (DCG) laid off 10%. At the end of the month, the Kraken exchange laid off 1100 employees, or 30% of its staff, to adjust to current market conditions. On December 4, Ben Zhou, CEO of the Bybit exchange, announced massive layoffs as part of an ongoing business reorganization.

For how to find a job during layoffs at crypto companies, read GetBlock Magazine’s article.

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