Cryptocurrencies have lost 1,000 jobs to AI since the launch of ChatGPT, but have regained them from other sectors, a16z reports.
Ever since artificial intelligence replaced cryptocurrencies as Silicon Valley’s shiny new toy, there’s been no shortage of jokes about workers jumping ship. New data from prominent venture capital firm Andreessen Horowitz (commonly referred to as a16z) shows that the truth is more complex.
In its annual state of encryption a report Released on Wednesday, a16z found that since ChatGPT launched in November 2022, about 1,000 workers have left the cryptocurrency industry for AI startups. But in the same time period, blockchain companies have gained the same number of employees from other industries, including traditional finance and technology.
“People forget that the FTX collapse and the ChatGPT launch were less than a month apart,” Darren Matsuoka, a partner in the cryptocurrency investment team at a16z, said in an interview with the website. luck. “There was a period of time in the cryptocurrency industry where it looked very negative for cryptocurrencies and very promising for AI.”
Today, the outlook for cryptocurrencies is markedly different than it was in late 2022. AI continues to drive record investing, but cryptocurrencies are starting to make a comeback. The market capitalization of all cryptocurrencies in circulation has exceeded $4 trillion, and Bitcoinvalue He hits All-time highs this year. This rebound comes as the Trump administration has embraced the sector, pushing for a regulatory thaw and supporting legislation in Congress to create oversight of stablecoins and exchanges. Best financial institutions like JPMorgan, Black Rockand Fidelity are all expanding their cryptocurrency offerings.
In its report, a16z found that workers coming into the cryptocurrency industry tend to join from a traditional finance and consulting background, or from fintech startups, which is another sign that the line between traditional finance and cryptocurrencies is blurring.
“We started preparing this report four years ago, when cryptocurrencies were in their teenage years,” Matsuoka added. “But the world is now taking cryptocurrencies more seriously…the industry has become much more mature.”
The power of crypto investing
This year’s annual cryptocurrency report is the fourth of its kind published by a16z, which established its cryptocurrency arm in 2018. After spinning off, the entity known as a16z crypto raised impressive funds during a previous blockchain boom era, including a $2.2 billion vehicle in 2021 and a $4.5 billion fund in 2022. Chris Dixona16z crypto has invested in top startups like Worldcoin, Uniswap, and Phantom.
While the rising AI industry dominates tech news headlines, a new a16z crypto report shows that cryptocurrency users’ desire for privacy is becoming more evident. The company cites Google Cryptocurrency privacy searches to rise in 2025
“It’s a common industry trope for people to say that users don’t really care about privacy,” Eddie Lazarin, chief technology officer at a16z Crypto, said in an interview with the website. luck. “I personally don’t think that’s true. I think people either care about it or will care about it.”
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