Young Professionals & Crypto Companies
We had a hypothesis that there are some fundamental misconceptions about cryptocurrencies as businesses.
So we decided to do a short survey. Here are the questions we asked:
- Do you know what alt-coins are?
- Do you consider any cryptocurrencies to be real companies?
- Is it possible for cryptocurrencies to have traditional business functions or structures?
- Have you ever considered to work for a cryptocurrency?
Who participated? Randomly selected young professionals from Europe, North, and South America.
The results had surprising implications for cryptocurrency companies. Read on to find out.
Question 1: Do you know what “alt-coins” are?
43% of our respondents did not know what an alt-coin was. Or maybe they did, but they had not heard the term before. In any case, we don’t want to take any risks!
Alt-coin is a term coined for any of the alternative 1000+ cryptocurrencies to Bitcoin.
We are about to explore how they are perceived by young professionals, so don’t leave just yet.
Question 2: Do you consider any cryptocurrencies to be real companies?
Interestingly, 48% said no. If you are on the same opinion, this next part is highly relevant for you.
If you are familiar with cryptos, skip to the next question.
Let us observe some features of Bitcoin to better explain our point.
- It is not a company
- It is powered by its users and decentral applications
- It is primarily an exchange and storage of value
While these attributes also hold true for some other coins like Litecoin, it is not the case for many other cryptocurrencies.
Let’s look at the examples of OmiseGO (OMG), Storj (STRJ), and TenX (TENX). Each of these are for-profit start-ups which offer real products & services. They have balance sheets. And most importantly, they are founded and managed by a successful team of entrepreneurs.
- OmiseGo: a payments startup founded in Bangkok
- Storj: online storage startup based in Atlanta, Georgia
- TenX: Singapore based start-up that let’s you spend your crypto assets with a card
So why are they traded as digital currencies? The tokens issued by such start-ups can have one of several uses such as:
- Providing access to the start-up’s digital products or services
- Allowing users to stake their ownership and get rewarded
- Acting as fundraising & investment tools
Question 3: “Is it possible for cryptocurrencies to have traditional business functions or structures?
Congratulations to our dear respondents! 70% of them answered yes. Our guess is that our first question impacted some of their answers though.
In any case, just like “regular” businesses, cryptocurrencies do indeed have traditional departments such as operations, legal, & design. They are companies at the end of the day; why shouldn’t they!?
The employees of these departments also sit in real offices where they come to create something unique. Would you believe that!
For example, the cryptocurrency, Ripple (XRP), has offices all around the world, including: San Francisco, New York, and London. Below is a picture of their San Francisco HQ.
Question 4: Have you ever considered to work for a cryptocurrency?
67% answered no.
Now let’s make an assumption. Let’s say each person that answered yes to this question also acknowledged cryptos as companies in the first question.
That would imply that 67% of people who knew cryptos as companies had considered working for them (math: 33%÷49%).
However, that also implies that majority of young professionals have never even considered cryptocurrencies as a career option, since half of them didn’t even know that they were real companies!
Most blockchain & crypto start-ups offer highly sophisticated ideas & technologies that will disrupt our way of living.
Yet, in order to succeed, these cryptocurrencies will need to fight for their most scarce resource: talent.
One way to start is by making sure that young professionals are aware of their existence as an actual workplace. That’s where we can help.