The drop in cryptocurrency prices can be meaning job losses for some, although This specific may carve out an ideal hiring opportunity for tech giants.
Some blockchain start-ups, regardless of having talented teams of engineers, haven’t been able to prove a use case in addition to are struggling to fund operations as the cost of cryptocurrencies nosedives. Employees are slowly becoming free agents, which can be Great news for companies like Facebook.
The social media giant recently scooped up employees through start-up Chainspace, according to a report by Cheddar. Facebook confirmed to SouthIndianNews.com that will This specific had hired a handful of employees although said This specific did not buy the company or its technology.
Chainspace can be a crypto startup founded by PhD researchers through University College of London. Two of these founders are currently listed as Facebook employees on LinkedIn. According to its website, the start-up can be focused on “giving people ownership of their personal data” through a project called “DECODE.”
In a note to clients last week, RBC internet analyst Zachary Schwartzman highlighted blockchain as a threat to Facebook in addition to additional major tech companies. The Internet can be still at the “embryonic stages of a potential massive paradigm shift” to computing on public blockchains, according to Schwartzman. that will shift “could be a long term risk to Facebook’s underlying business style,” he said.
Schwartzman categorized Facebook’s move as an “acqui-hire” — a common Silicon Valley term for when a company acquires a company only to recruit its employees.
“On the surface, This specific may appear that will Facebook purposefully hired the technical team related to DECODE. although we don’t believe This specific was the case,” Schwartzman said. “Our view can be that will This specific was simply an acqui-hire to expand Facebook’s internal crypto team’s expertise.”
Facebook can be on a growing list of tech companies testing out the blockchain space, with former PayPal executive David Marcus leading its charge. Amazon, IBM, Microsoft in addition to J. P. Morgan are among others looking at use cases for the technology, which supporters call more transparent in addition to more secure than existing data systems.
although like the internet, the best way to monetize This specific might not be obvious immediately. “Acqui-hiring” gives tech giants a way to quickly get blockchain experts that will are already working together to find that will use case, according to Satya Bajpai, head of blockchain in addition to Digital Assets Investment Banking at JMP Securities.
“This specific will take some time,” said Bajpai, who advises blockchain companies on early stage M&A. “although as the technology matures in addition to becomes more relevant to more customers, you’ll see a snowball effect with more public deals in addition to partnerships.”