Wave of Crypto Layoffs & Resurgence
Looks like FTX and Binance are about to leave their competition in the dust in this crypto winter.
Google, Amazon, Yahoo and Microsoft all benefited greatly from the early 2000 tech crash in that they had a lot of cash and were able to hire a lot of really good tech talent that was suddenly out of a job. Looks like FTX and Binance are about to leave their competition in the dust in this crypto winter.
Coinbase seems to have thrown in the towel for now. I would have thought they would see this as an opportunity but their fiscal situation must be a lot worse than they are letting on. Which is strange because I would have thought they were better capitalized that they are letting on. Today we're watching all these companies closely as we can to see if they have a lot of bad loans outstanding to failing firms. With Voyager about to go under, Celsius just hiring a firm to guide them through bankruptcy and several other minor firms already going under there will be no shortage of tech talent available to well run firms. When we come out of this downturn in a year or two FTX and Binance are going to be even larger giants than they are now. With no real government oversite over those firms to limit their growth, the next crypto crash could be because one of those two gets into trouble.
Another dark horse candidate is Goldman Sachs, they are well capitalized. Look for them to start to buy up distressed crypto assets and go into the next bull market in(probably 2024) as a big crypto player for institutional clients, and possibly for retail under their Marcus brand.