Chainalysis Global Vice President of Talent Mikaela Smith joins Yahoo Finance Live to discuss the fallout from FTX and what it means for the cryptocurrency industry.

video transcript

AKIKO FUJITA: Well, one developing story that we are watching closely is of course the fallout from the FTX collapse. Last month, the cryptocurrency exchange filed for bankruptcy after concerns were raised regarding Alameda Research’s balance sheet. Founder Sam Bankman-Fried spoke to the New York Times DealBook earlier this week, reflecting on the chaos. Take a listen.

SAM BANKMAN-FRIED: I never tried to commit fraud with anyone. I was excited about the prospects for FTX a month ago. And that’s a massive failure of risk management oversight and diffusion of responsibility from myself, at the helm of FTX.

AKIKO FUJITA: And of course Rachelle, as we continue to follow what exactly happened at FTX, a lot of the questions around this have been, what happens with the crypto industry moving forward?

RACHELLE AKUFO: And especially the people who work there too. And speaking of which, the wave of layoffs hitting the cryptocurrency sector has really picked up speed and derailed an industry that was going through a hiring boom. So where do we go from here?

Well, joining us to talk about the job market within the space is Mikaela Smith, the global vice president of talent at Chainalysis, a blockchain data platform. It’s good to have you on the show. So first I want to get your takeaways because obviously we’ve seen a lot of tech layoffs. But what we’ve been seeing with some of these cryptocurrency exchanges is a different story. How is that affecting the movement you’re seeing of laid off crypto and exchange workers?

MIKAELA SMITH: I mean, that’s a great, great question. I can’t really speak to other companies. Chainalysis has been growing quarter over quarter. In fact, we have seen a 60% increase in applicants. And so our space is doing very well, despite what’s going on at other companies in the crypto market right now.

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AKIKO FUJITA: Yeah, you may not be able to talk to other companies, but I’m wondering what you think this means in terms of the growth that we’ve seen overall? Obviously, we’ve heard the layoffs from places like Kraken, bankruptcy filings from BlockFi, FTX. I mean, it has to have some kind of ripple effect when you think about how quickly the staff filled up before all of this.

MIKAELA SMITH: Yes, it is very sad to see. That is, layoffs affect everyone both personally and professionally. And I think at the end of the day, Web3 and blockchain technology is the future of the world’s financial systems. So while I think in the short term, this has been a downturn for the crypto industry, I think there really is an opportunity here.

Chainalysis’s mission is to build trust and transparency in blockchain technology. And this moment in time, while in the short term it’s very painful, I think in the long term it will help make this technology more secure and more transparent for users.

RACHELLE AKUFO: So for job seekers, what are some of the most in-demand roles in this space right now?

MIKAELA SMITH: Well, it’s fun. Really, our employee base and the people we hire, we don’t necessarily look for people who are in the crypto industry. The people we hire are a reflection of our customer base. So we hire people from the public sector, from the government, from the media, from technology, in all areas. We’re hiring in engineering and sales, marketing, even in my own role, talent.

AKIKO FUJITA: Yeah, I mean, what does that ratio look like right now when you look at job postings for applicants? I mean, how significant is the lawsuit?

MIKAELA SMITH: I think the demand is quite significant, especially when you look at the global markets. Crypto continues to be very globally focused, especially in emerging markets. And so, you’ll see a lot of hiring in the public sector space, around regulation and compliance. And then again, this is a new technology that continues to innovate. And you will continue to see investment in the R&D space.

RACHELLE AKUFO: And I just–

AKIKO FUJITA: Chainalysis Global Vice President of Talent, Mikaela Smith, thanks you for your time today. Thank you very much for joining us.

MIKAELA SMITH: Thank you very much.