Binance revealed plans to hire 1,000 employees in several key areas by 2024, demonstrating its bullish outlook on cryptocurrencies.
Binance will add 1,000 new employees in 2024.
New recruitment is mainly concentrated in two areas.
Hiring indicates an optimistic market outlook.
When the cryptocurrency market crashed in 2022, most exchanges immediately slashed costs. This was because exchanges were so dependent on how the market performed. Now, the situation is reversing.
Binance, the largest exchange by trading volume, has announced plans to hire 1,000 new employees this year. The hiring spree is focused on several key areas, which to some extent bodes well for Binance’s future prospects.
Why Binance is hiring 1,000 new employees
Binance is on a hiring spree. On Thursday, August 22, Binance CEO Richard Teng announced plans to hire 1,000 new employees by the end of 2024. These new employees will be assigned to key positions in the company, the most important of which is compliance.
The information was revealed during Teng’s visit to the United States, where he met with various relevant authorities. American officials have been monitoring Binance’s operations after reaching a $4.3 billion settlement with the United States as part of the company’s plea agreement. Due to the increased compliance requirements, many of Binance’s new employees will serve in compliance positions. According to Binance’s CEO, Binance will increase the number of employees in its compliance department from 500 to 700.
While compliance explains part of the hiring effort, it does not explain all of it. According to the CEO, the remaining 1,000 new positions will be for other key areas, including customer service. This suggests that Binance is ready to invest in its business due to the positive market outlook. In particular, the expansion of customer support is consistent with potential market growth and growth in user activity.
Bear market, lawsuits force Binance to lay off staff
The cryptocurrency exchange business depends heavily on the direction of the cryptocurrency market. Since cryptocurrency exchanges make money through fees, they benefit from higher cryptocurrency prices and greater trading volumes. This is further amplified by high trading volumes in the cryptocurrency market during bull markets. At the same time, cryptocurrency exchanges have high fixed costs, which include corporate overhead and regulatory compliance.
Cryptocurrency exchanges are therefore a cyclical industry that largely depends on whether the market is bullish or bearish. For example, following the 2022 cryptocurrency crash, several cryptocurrency exchanges were forced to lay off employees, including Binance. Binance suffered a further blow due to costly legal proceedings with US authorities.
The decision to layoffs is not one taken lightly. At tech companies, hiring and firing employees is costly and time-consuming. Therefore, Binance’s decision to significantly expand its workforce demonstrates the company’s optimism about its near-term prospects.
on the other hand
Binance’s CEO also revealed that the company is exploring locations for its global headquarters and is reportedly considering Dubai and Abu Dhabi.
The cryptocurrency markets are difficult to predict, even for the most experienced. While Binance may anticipate growth, there is no guarantee it will materialize.
Why this matters
Binance’s massive hiring indicates that the exchange, which has a unique view of the market, is optimistic about the future. It shows that while growth is not guaranteed, key players are preparing for it.
