Surely Web3 jobs and Web3 businesses will suffer after Bitcoin and Ethereum, the two largest cryptocurrencies, fell approximately 60% from their highs in November 2021. Furthermore, Bitcoin’s price is languishing around $28,000 – quite a drop from $67,000 back in November. ETH, in the meantime, is hanging on to about $1,750, down from approximately $4,800 in the same timeframe.
In addition, the recent crash saw $1 trillion in cryptocurrency evaporate in only six months. Hence, investors will exercise extreme caution and eye all things crypto with suspicion in the near term.
But is it all doom and gloom for Web3 businesses and Web3 jobs? The knee-jerk reaction is to believe that all opportunities will dry up in the sector. But, if that’s what you’re thinking, think again! This article will explore the upcoming options for those starting Web3 businesses and those looking for Web3 jobs in light of current circumstances. To get started, let’s first look at Web3’s origins to put things in perspective.
From Web1 to Web3
The internet’s first era occurred from roughly the early 1990s to 2005. It featured a decentralized ecosystem, with most of the created value going back to the network’s users and builders. The second era, from 2005 to 2020, exhibited the opposite. This phase saw the rise of centralized services, silos, and much of the revenues going to a handful of big-tech oligarchs.
Now, we’re on the brink of the third era – Web3. Thankfully, in this latest phase, we see a return to the community-centered, decentralized ethos of the first era but with the advanced functionality of the second. Now that Web3 looks to be entering a bear market, it’s natural for pessimism to reign. However, cooler heads are countering the irrational negativity.
If you live in a country where you’ve not only felt the negative impacts of the bear market but also seen the legal system hammering crypto, find out about the top five crypto-friendly countries in one of our recent blog posts at Moralis Academy!
The Andreessen Horowitz Report
One prominent player in the Web3 space has stepped up to counter all the recent negativity. The venture capital firm Andreessen Horowitz (a16z) recently drafted a report, “State of Crypto 2022,” predicting better days for Web3.
Andreessen Horowitz makes a case for Web3 and some exponential growth in sectors within it, such as decentralized finance (DeFi), decentralized autonomous organizations (DAOs), non-fungible tokens (NFTs), blockchain gaming, and the metaverse. Over the next ten years, the report’s outlook for the sector is profoundly optimistic.
Moreover, for the critics who complain that crypto has yet to offer valuable services to the public, the a16z paper cites that crypto is still in its early phase. Lastly, the report likens the evolution of Web3 today to be the point where the internet was in 1995. Many people didn’t “get” the internet’s potential at that point either.
The Tech Market Slump
Another factor to remember is that nearly all the markets are down, not just crypto. The S&P 500 dropped approximately 17%, while the Nasdaq tanked 28%, leaving some tech stocks down 80%. The broader economy suffers from falling growth and spiking inflation reminiscent of the 1970s malaise when all asset classes took a hit. Bonds have also suffered as rates rise to offset inflation.
Therefore, as we explore the future of Web3 businesses and Web3 jobs, it’s important to remember that tech stocks, in general, have been collapsing for months. The downturn is not a direct indictment against Web3.
Web3 Businesses in a Bear Market
Market crashes elicit fear and pessimism. But they can also bring clarity. During downtimes, inferior companies panic, pivot aimlessly, and get discouraged and distracted.
On the other hand, top companies knuckle down, build, and acquire talent. Some Web3 firms will do their best work during this down period because they can focus on what’s important. That means making superior-tech without the hype and distractions of “moon boy” fantasies that inevitably surge during boom times.
Great companies get built during bear markets because they have to focus on solid fundamentals way more than when investment capital is flowing freely. So, the Web3 businesses that survive and make advancements during these dark days will resurface ahead of the field when the dust settles.
Similarities with the Dot-Com Crash
This phase of Web3 businesses could be reminiscent of the time right after the dot-com bubble burst. Any internet business was suspect. In the dot-com crash of 2000, thousands of tech companies died on the vine. These were the first generation of companies on the web, and many were laid waste.
Yet some twenty years later, we find some of the world’s biggest companies rose from the ashes of that time. The internet is now the world’s economic and social platform. Many of these giants didn’t start until that crash period. Furthermore, some ideas that failed during that bubble got reworked and succeeded spectacularly years later.
The crypto crash affected the entire industry, but some projects, such as LUNA and its sister stablecoin, UST, suffered more than others. If you’re not sure what LUNA is, find out in one of our latest articles if you want an answer to the “what is LUNA token?” question. Also, save our “Stablecoins Explained” article for later reading to increase your knowledge of price pegged assets!
Life Beyond the Crypto Crash
Irrational pessimism naturally follows any financial crash. Likewise, irrational optimism reigns at market tops. It’s no different this time in crypto. Depression looms amongst those who over-extended themselves and bought in late after the hype pushed prices to their historical high points. Those looking to make a quick buck ended up buying high and selling low and will be the first to denigrate Web3 in their humiliating exit.
However, for those who understand Web3’s potential and are in it for the long haul, the volatile price whipsaws are all part of the process before mass adoption occurs.
Remember, only five years ago, in May of 2017, Bitcoin’s price was around $1,800. Even after the recent crash, it’s still worth 16x that amount. Compare that to gold, to which Bitcoin’s use case is often compared. That traditional hedge against inflation has fallen more than 3% in the same time frame.
Some Positive Takeaways
One beneficial outcome from the fallout is that bad ideas and scams will be the first washouts in Web3 as the tide of liquidity recedes. Sadly, some ideas ahead of their time will also get washed out. But they’ll be reinvigorated by a new team during the next growth phase as capital rushes back.
In sum, those bullish on Web3 infrastructure believe it will continue to evolve with further improvements that result in a positive outlook for Web3 businesses and Web3 jobs in the long run.
Changing Business Models in Web3
Blockchain technology may be the foundation of the Web3 movement, but the initiative is much broader. At its core, Web3 stands in stark contrast to its predecessor of monopolistic powers. It’s all about creating decentralized infrastructures to protect individuals’ privacy and property. Further, the innovative nature of Web3 will change the way businesses operate. Let’s take a look at a few.
If you already have a business but want to make it “Web3 ready”, take the Blockchain for Business course at Moralis Academy.
Social Tokens for Artists
Have you ever felt like you were the first to discover an underground artist? Whether it be a band, DJ, or painter? Wouldn’t it be great if you could invest in the artist and share in the upside as they reach their potential? With Web3, artists and creators of all stripes can share their future revenue with their fans by offering them social tokens early in their careers. For example, an artist could airdrop tokens to their first 1,000 fans.
This kind of direct financial relationship between artists and fans doesn’t exist in Web2, where record companies, art galleries, or agents take a hefty percentage of revenues. But by combining social tokens with NFTs, artists looking to maximize relations with raving fans can deploy Web3 business models.
NFTs in Web3
According to the a16z report, we can expect more creators to embrace Web3 once they realize how better it is to sell their digital goods directly to their customers rather than depending on older Web2 monetization methods.
The only limits to NFT use cases are the imagination of artists. Novelists, musicians, or subscription-based newsletter creators won’t need to pay large social media platforms and other intermediaries high percentages as they do now. When you’re ready to start creating, check out our full guide to building a Web3 dapp.
Web3 Gaming and DeFi
The a16z report also predicts more Web3 game launches with founders who have core experience at top gaming studios. More players will onboard so they can earn crypto through play-to-earn (P2E) games and NFT trading of in-game items. Furthermore, they’ll be more likely to reinvest their tokens into DeFi protocols, where they can earn better interest rates than in traditional finance.
By keeping money in the ecosystem rather than cashing out and putting it in bank accounts with anemic interest rates, this extra capital will empower more growth in the DeFi sector.
To learn to build Web3 games, visit Moralis Academy. Some of the courses include Unity blockchain game development, Ethereum game programming, and Enjin blockchain development.
In sum, Web3 will change business models in ways we can’t even comprehend at this point. So, regardless of the present downturn, artists and entrepreneurs can use these innovative concepts to launch their Web3 businesses.
Web3 Job Opportunities During Crypto Crash
There are also opportunities for those who are more interested in finding Web3 jobs rather than building their own businesses. Therefore, we’re going to explore some Web3 jobs below!
Blockchain Developer
Becoming a developer is the obvious choice for people thinking about the best Web3 jobs. If development is your strong suit or area of interest, Moralis Academy has a plethora of courses taught by some of the best instructors in the industry. You can learn to build a DEX with JavaScript or build a Web3 dapp with JavaScript. If you’re already an expert in JavaScript, you can jump ahead to build a wallet or a DEX on Ethereum.
Courses from Moralis Academy lets you build dapps and get hands-on experience. If you’re still not convinced, check out our article that digs deeper into other reasons why to learn Web3 development.
Other Web3 Jobs
If programming is not your thing, don’t worry! Job skillsets in the traditional marketplace can often transfer to Web3 once you’ve learned how the infrastructure works.
There are Web3 jobs for research analysts, blog writers, technical writers, marketing managers, community managers, social media managers, project managers, and event managers. Web3 evangelists in marketing/public relations roles will also be necessary. Whatever marketable skills you already possess can likely translate to finding Web3 jobs. Now, all you need is Web3 knowledge. Don’t worry. Moralis Academy offers the best Web3 courses.
If you’re new, start with the Crypto for Beginners course. Next, you can take the Blockchain & Bitcoin Fundamentals course. From there, you can move on to Ethereum Fundamentals. After you have the basics down, you can explore a range of other Web3 classes.
How to Get Web3 Jobs
DAOs are another one of Web3’s innovations. They can transform an acolyte into a board member, entrepreneur, or freelancer. That’s because anyone can join a DAO and contribute to the community.
In this new world, CVs are irrelevant. The important thing is whether or not you can provide value. If your skillset can bring value to a DAO, it can lead to a paying gig. As such, DAOs are good news for those looking for a job in Web3. Once you find your ideal Web3 project with a DAO, get involved and see if you have the skills (or can develop them) to make a positive contribution. You can also join the project’s Discord channel and see what volunteer opportunities are available. Moreover, volunteering is a way to get experience and make contacts.
If full-time or contract work becomes available, certainly the company will prefer to hire someone who’s already shown their skills in the DAO community rather than hire an outsider with a resume. As such, “doers” get rewarded in Web3. So, besides applying for jobs the traditional way, think about DAOs and Discord.
The Future of Web3 Jobs and Web3 Businesses – Summary
Whether you’re interested in starting Web3 businesses or finding the best Web3 jobs, don’t let the current downturn discourage you. This recent crash notwithstanding, Web3 is ready to kick off a new generation of creativity and entrepreneurship. That means lots of opportunities for those with the foresight who take action now.
Once you start taking the online courses at Moralis Academy, you’ll uncover the details of what makes Web3 technology stick and why it is the future of the internet. More importantly, you can get a head start on the competition before the market turns bullish and the herd starts stampeding in.
