US crypto firms offer 13% higher salaries. | Credit: Pixabay
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Key Takeaways
Dragonfly Capital’s survey shows US crypto firms offer higher salaries and richer equity than their international counterparts.
US crypto firms are wary of tokenized compensation due to SEC scrutiny, while international firms are more open.
Dragonfly Capital reports an improved hiring outlook in crypto despite a challenging 2022.
A survey by Dragonfly Capital found that US crypto companies offer compensation packages significantly higher than those of international counterparts.
On average, salaries in the US crypto sector are 13% higher. Meanwhile, equity and token incentive packages exceed those overseas by 30%.
US Crypto Firms Skip Token Rewards as SEC Looms
These tokens, linked to crypto projects, function similarly to share options, highlighting the lucrative compensation landscape in the US crypto industry.
American crypto startups are less inclined to issue tokens as part of compensation compared to their international counterparts. This is, most likely, because of the stringent stance of the US Securities and Exchange Commission (SEC) towards digital assets.
Only 11% of US crypto firms have launched a token, in contrast to 38% of firms globally.
"Crypto firms are attracting top talents from the traditional financial sector in droves thanks to higher salaries and the prestige of working in the emerging industry… pic.twitter.com/C7eqSVVs09
This cautious approach may stem from SEC Chair Gary Gensler’s view of the crypto sector as fraught with fraud and within the regulatory range of the SEC.
The regulator’s approach to the crypto industry has been controversial, and recently, a judge criticized the agency for overstepping its bounds in a particular crypto case, describing it as a “gross abuse of power.” This incident highlights the ongoing tension between regulatory bodies and the evolving digital asset space.
Founders Rake in $300,000, Top Engineers Near $283,000
Dragonfly Capital’s report highlights salary benchmarks within the crypto industry, revealing that founders can expect to earn around $300,000 by the Series C funding stage.
Additionally, executive-level engineers can receive salaries up to $283,000 a yeat, not accounting for equity and token incentives.
This data showcases the competitive compensation packages available in the sector, especially for high-level positions.
Credit: Dragonfly Capital
Crypto Salaries High, Hiring Rebounds, But Caution Reigns
Dragonfly Capital’s 2023 survey of 49 startups it backs suggests emerging trends in crypto firm compensation rather than sector-wide norms.
It notes a preference for fiat payments, though international companies are somewhat more inclined to use crypto. The industry, recovering from a challenging 2022 marked by significant downturns and high-profile failures like FTX, is seeing an improved hiring outlook coinciding with market recovery, contingent on the rebound’s durability.
Crypto job postings on LinkedIn saw a 57% decline year-over-year last December, a slight improvement from November’s 71% drop.
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The year was tough for the crypto industry, with significant layoffs from companies like Gemini Trust and Binance.US due to regulatory pressures and low trading volumes. Despite venture capital investments dropping, the late-year price rally could herald more startup funding and hiring ahead.
Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear.
Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3.
An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.
