February in Crypto: Macro events leave crypto relatively unscathed
February has been an interesting month for Crypto. With the invasion of Russia on Ukraine, stocks, mostly in tech, have taken a nosedive, and so has the commodities market. With an unprecedented set of events occurring in Europe unseen since the 40s, it seems like the “hedge against inflation” narrative may have some legs to it. The thesis which sees the equities and crypto decoupling seems to return every time there are 3 days where they don’t move in the same direction, but it seems like the advent of war has put the theory to practice, and for the last week, it hasn’t been a wrong thesis. Incumbents, as well as companies looking to enter the space, are the living proof of that.
Growth in Web3
Having had the status as a legacy boutique in London, the launch of Armstrong’s digital assets business has been quite a success. Picking up clients across the whole sector, we have seen a hike in hiring which is unheard of in most industries. As we look at the developments in February, I should start by addressing the obvious... how good was Coinbase’s Superbowl ad? Having been lauded as a stroke of creative genius, the ad forced the site behind the QR code to crash. But in terms of impact, it is believed to have taken downloads of the Coinbase IOS app from #186 to #2 on the App Store. Unsurprisingly, in the days following the ads, Coinbase announced its plans to increase its headcount by an additional 2,000 employees for 2022. In particular, the exchange is looking to expand its capabilities, primarily in Product, Engineering, and Design. Talking of exchanges with Superbowl ads, Bahamas-based platform FTX has continued expanding its areas of operations, in particular targeting the luxury good market. Hiring former model turned beauty entrepreneur, Lauren Remington Platt, the firm led by Sam Bankman Fried plans to build on their foray into sports, gaming, and now fashion too.
Where Web2 meets Web3
The desire to transition from Web2 to Web3 was one of the key aspects of 2021 which brought along the adoption of digital assets in the mainstream. Fortunately, the trend has continued for 2022. This has been the case across many social media platforms.
In old news, Crypto native’s beloved Twitter added the ability to connect your Metamask to your account last month. Announcing their desire to go into space earlier this month, Spotify listed a job ad looking for a senior backend engineer to work in future projects which will include an attempt to reap the benefits of Web3’s recent surge. Spotify is not the only streaming platform with those goals, with the Alphabet-owned YouTube having recently posted a vacancy for a Web3 Product Manager. The company described the role of this individual as someone who will "define, communicate, and execute the vision, strategy, and roadmap for Web3 at YouTube”. The desire to innovate will eventually take them to having the team in place is something Disney knows well about. Having already released an NFT project in the past, Disney has now appointed Mike White, former Media and Entertainment Distribution group executive, to the new role of senior vice president of Next Generation Storytelling and Consumer Experiences, where he will help define how consumers will experience Disney's coming metaverse.
TradFi to Defi
It’s not just tech looking into the Web3 movement. As the synergies between TradFi and Defi seem to grow by the day, so does the desire of the legacy operators in finance. Singapore's megabank DBS ($500B in assets) has announced its intentions to launch retail crypto trading by year-end, intending to be one of the biggest institutions to enter the space. Furthermore, trillion-dollar asset manager BlackRock plans to offer crypto trading to their clients through their Aladdin investment platform, according to sources. As we continue to build out our Armstrongs’ digital assets business, we have recently begun canvassing crypto funds in the space to connect with our existing network of institutional clients. If that is of interest to your firm, we are always available for a conversation.
Things are looking positive for crypto, and with new developments arising on a day-to-day basis, not even a war can stop the trailblazing strength with which the technology disrupts across all industries. If you are looking to hire in the space, please book a call with me, Ben Ashkenazi, or reach out to Armstrong International for a call with one of our consultants.
