Ever since AI supplanted crypto because the shiny new toy in Silicon Valley, there’s been no scarcity of jokes about employees leaping ship. New knowledge from distinguished enterprise capital agency Andreessen Horowitz (generally known as a16z) reveals that the reality is extra sophisticated.
In its annual state of crypto report launched on Wednesday, a16z discovered that because the launch of ChatGPT in November 2022, round 1,000 employees left the crypto business for AI startups. However, in that very same time interval, blockchain firms gained the identical variety of staff from different industries, together with conventional finance and tech.
“Folks neglect that the collapse of FTX and the launch of ChatGPT have been lower than a month aside”, mentioned Daren Matsuoka, a accomplice on the crypto funding workforce at a16z, in an interview with Fortune. “There was a time frame within the crypto business the place it was trying very adverse for crypto and really promising for AI.”
At this time, the outlook for crypto is markedly totally different than it was in late 2022. AI continues to drive file funding, however crypto has mounted a comeback. The market cap of all cryptocurrencies in circulation has surpassed $4 trillion, and Bitcoin’s worth hit new all-time highs this yr. The resurgence comes because the Trump administration embraced the sector, pushing for a regulatory thaw and championing laws in Congress to ascertain oversight for stablecoins and exchanges. Prime monetary establishments like JPMorgan, BlackRock, and Constancy are all increasing their crypto choices.
In its report, a16z discovered that employees coming into the crypto business are tending to hitch from a conventional finance and consulting background, or from rising fintech firms, one other signal that the road is blurring between conventional finance and crypto.
“We began doing this report 4 years in the past, when crypto was in its teenage years,” Matsuoka added. “However now the world takes crypto significantly… the business simply bought much more mature.”
Crypto investing powerhouse
This yr’s crypto annual crypto report is the fourth of its sort to be revealed by a16z, which spun out its crypto arm in 2018. Following the spin-off, the entity often called a16z crypto raised staggering funds throughout an earlier increase period for blockchain, together with a $2.2 billion car in 2021 and a $4.5 billion fund in 2022. Led by Chris Dixon, a16z crypto has invested in high startups akin to Worldcoin, Uniswap, and Phantom.
Whereas the hovering AI business has dominated tech headlines, a16z crypto’s new report reveals that crypto customers’ want for privateness is turning into extra pronounced. The agency cites Google searches associated to crypto privateness surging in 2025.
“It’s a typical trope within the business for folks to say customers don’t actually care about privateness”, mentioned Eddy Lazzarin, a16z crypto’s chief expertise officer, in an interview with Fortune. “I personally don’t suppose that that’s true. I feel that individuals both do or will care.”
