Despite significant crypto losses, crypto companies do not think about layoffs

EPA

NOS News

  • Nik Wouters

    editor finance

  • Nik Wouters

    editor finance

The large Dutch crypto companies want to hire significantly more employees in the coming months. While the American crypto company Coinbase is laying off 18 percent of its employees, the three largest crypto companies in the Netherlands want to continue to grow.

The fastest growing company is Bitvavo, which employs more than ten people every month. “In March, we moved to a new building with about 125 people. I think we will employ about 250 people by the end of the year,” says CEO and co-founder Mark Nuvelstijn.

The value of cryptocurrencies has fallen sharply in recent months. Bitcoin, by far the largest crypto, has lost half of its value this year. The sharp declines in the crypto markets and reports of layoffs abroad are creating uncertainty among the employees of crypto companies.

“Some employees have asked about this because they had recently started working with us and in some cases had moved to the Netherlands before that,” says Nuvelstijn from Bitvavo. “We have indicated to our staff that there is no cause for concern and that we will continue to grow.”

‘2021 was wilder’

Another company, Litebit, is looking to hire about 20 people this year, in addition to the 120 people already working there. “We are used to markets going down,” says Olivier van Duijn, former head of Marktplaats. Today he leads the crypto trading platform Litebit. “Developments in the markets have had little impact on our strategy.”

A few things have changed in the market, he sees. “What we see in trades now is not comparable to what you saw last year. It was much wilder then. In a downward market there are many trades, but in an upward market there are many more.” Companies like Litebit earn commissions from each transaction.

He sees that there is less money in the market for investments in crypto companies and expects that especially the smaller crypto companies will find it difficult. “It’s getting harder and harder to comply with the rules, and I think that will reduce the number of companies.”

Prices are also falling in the stock markets. Bux is a young company that offers investment in stocks and crypto. That company also notices the turnaround in the market. “The number of new customers is still growing steadily, but we no longer see the number of new customers we saw during the dive in the corona market in March 2020 or during the GameStop hype,” said Yorick Naeff, head of Bux.

Winter

Toon Schraven from BTC Direct and BLOX sees that the mood around crypto has changed due to the falling prices. He does not yet want to talk about a ‘crypto winter’, but he feels it is hanging in the air. “With every few years, a calmer period begins. After the price increases at the end of 2020 and 2021, this now seems to be the case. Then you have to use a different strategy in your cost pattern. We are growing less with staff than last year, and we’ve adjusted our advertising strategy. “

The company currently has eight vacancies with a few more on the way. “We still need new people, for example because of new rules. There is also a need for new developers.”

Part of the company’s growth comes from abroad. Like Bitvavo and Litebit, Schraven plans to offer its service in several European countries.

lost money

Many Dutch people have lost money due to the collapse of cryptocurrencies. According to research from AFM at the end of last year, approximately 1.2 million Dutch people own crypto.

I advise people not to look at the prices every day.

Mark Nuvelstijn, Bitvavp

One of the people who lost money is Mark Nuvelstijn, the founder of Bitvavo. Business magazine Quote estimated his fortune at 150 million euros in early May, but since then prices have fallen further. “I do not deal as much with such things as possible. We are in a hurry to expand our business and we ignore all peripheral conditions,” Nuvelstijn says briefly about this.

He would like to say that he himself owns crypto and that he has suffered losses on it in recent months.

Nuvelstijn sees that some customers who have not been active in crypto for a long time are getting nervous about the falls. “I advise people not to look at the prices every day. I do not think people make better choices. And I advise them to invest only a limited amount so that one does not become insecure.”

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