Crypto Fails That Still Keep Me Up at Night
Let’s get one thing straight—Crypto Fails aren’t just headlines. For those of us working deep in the trenches of this industry—especially in recruitment—they’re career-defining moments. They affect candidates, companies, and the credibility of Web3 as a whole.
I still remember placing a brilliant smart contract dev in 2021 at what seemed like a rising DeFi star. Six months later, they messaged me: “The team’s vanished. Discord’s locked. Wallets drained.” That was their first blockchain role—and their last.
These moments stick with you. They shape how we hire, how we vet, and how we survive in this wild space.
Let’s unpack a few of the biggest Crypto Fails I’ve seen—and why they still matter.
The Cult of the Founders
Crypto loves a charismatic founder. But some of the biggest fails I’ve witnessed started with teams hiring based on hype, not substance.
Remember Do Kwon? Terra’s spectacular implosion wasn’t just a tech failure—it was a people failure. He was lionised even as cracks were showing. I had candidates turning down safer roles at stable companies just to work at “the next big thing.”
The lesson? Charisma ≠ credibility. Today, when I talk to candidates, I always ask: “Do you know who’s behind the project?” Not just their Twitter feed, but their actual track record. Are they shipping or just tweeting?
VC Money Doesn’t Equal Stability
One of the biggest myths in Web3 recruitment? That a company’s funding round guarantees job security.
In 2022, a layer-1 blockchain project with a $200M Series B came calling. Flashy pitch deck. Swanky careers page. I placed two mid-level engineers there. By Q1 2023, they were both back on the market. “Restructuring,” the company said. “Burn rate,” I said.
Funding is oxygen, but it’s not a parachute. It doesn’t guarantee runway, leadership clarity, or market fit. I now push candidates (and founders) to look beyond capital: What’s the revenue plan? Who’s leading ops? What’s retention like?
In a post-FTX world, due diligence is everything—even for job seekers.
Token Comp > Real Comp
Here’s a sticky truth no one likes to admit: too many Crypto Fails stem from people accepting token-heavy packages they don’t understand.
In the 2021 bull run, tokens were flying like confetti. I saw devs take 20% salary cuts for 5x token allocations—often with no vesting, no liquidity, no tax planning. Then the market crashed, and they were left with regrets instead of returns.
One candidate I worked with joined a DAO offering “governance tokens as salary.” It sounded democratic. It turned into financial chaos.
I now coach talent to ask the hard questions:
-
Is this token live and liquid?
-
What’s the vesting period?
-
Is there a clear path to fiat?
It’s not anti-Web3 to want clarity. It’s smart survival.
The “We Don’t Do HR” Culture
Crypto loves decentralisation—but sometimes, that becomes an excuse for disorganisation.
I’ve worked with brilliant teams that ran like well-oiled machines. I’ve also seen DAOs implode because no one wanted to “own” hiring, onboarding, or conflict resolution. One candidate I placed told me, “I’ve been here three months. I don’t know who my manager is.”
That’s not freedom—it’s failure.
Even the best technical minds will walk if they feel lost or unsupported. Culture matters. Leadership matters. And yes—HR matters, even in a DAO.
Today, I screen heavily for operational maturity. Do they have onboarding? A roadmap? Weekly standups? A plan for when things go wrong? If the answer is “we’re figuring it out as we go”—that’s often code for chaos.
Why These Fails Still Matter
These Crypto Fails aren’t just horror stories—they’re warnings. They’re reminders that for Web3 to mature, we need to build with accountability, not just ambition.
Recruitment is more than filling seats. It’s about placing the right people in places where they can grow—not just grind. And that means learning from every rug pull, every collapsed DAO, every ghost town of a Telegram channel.
The good news? We are learning.
Candidates are asking sharper questions. Founders are building more transparently. And recruiters like me? We’re not just matching skills—we’re stress-testing ecosystems.
Because in crypto, there’s no such thing as “just another job.”
