Recently, many Blockchain projects experienced the squeeze and were forced to let staff go and downsize operations. The NEM Foundation was one of the latest projects among the growing list of those battered by bears, as it experiences a complete restructuring. For all the bigger players looking to scoop up tech talent for their crypto market ambitions, this is a piece of good news.
One of the latest examples is Facebook, as this social media giant recently acquired the team called Chainspace. As per the RBC internet analyst, Zachary Schwartzman, crypto market and blockchain may be a huge threat to Facebook likes. As computing moves to public blockchains in which he described them as the “embryonic stages of a potential massive paradigm shift.”
Schwartzman elaborated on CNBC
On the surface, it may appear that Facebook purposefully hired the technical team related to DECODE. But we don’t believe this was the case. Our view is that this was simply an acqui-hire to expand Facebook’s internal crypto team’s expertise.
This report also notes that other tech and finance giants are keenly eyeing the space which appears far more lucrative today when compared to the hype a year ago. The tech giants such as IBM, Amazon, Microsoft and JP Morgan are all straying into Blockchain. They are doing so to increase security and transparency over existing systems.
According to researchers, Venture capital was on roll in 2018, as $2.6 billion was spent on deals for about 300 companies. Eventually, this was triple the figures for 2017 despite the plunge in prices. Since then the investment environment cooled off a little. However, some of the companies didn’t have products on the table during fundraising.
One such example is EOS having raised $4 billion, mostly in Ethereum and no products at that time. Along with the other cryptocurrencies, EOS also dumped 88% since its high in April, the previous year along with other cryptocurrencies.
This plunge in Ethereum appears in the woes of startups which flood the market by adding to bearish sentiment. The analysts say, a big shakeout who could not meet the deadlines and keep up the product updates will fall away. Whereas the ones focusing on building the technology will definitely survive.
The tech and internet monopolies are perfectly paying attention and circling like sharks in a digital pool. As this pool is filling up with fresh talent as crypto winter continues.