Should you stop banking for crypto in 2022?


Since the departure of Goldman Sachs CEO Aziz McMahon Goldman Sachs in May 2021 after allegedly making a small fortune in Dogecoin, investment banking jobs weren’t quite the same. Even though this year’s bonuses are also massive as suggested by the first reports, there will always be a feeling of FOMO – a $ 2 million bonus for 2021 isn’t bad if your 2020 bonus was $ 1 million, but what if you could have earned more and worked less to one crypto market maker? Worse, what if by staying in a bank in 2022, you reduce your potential employability in a future that is all about DeFi? Like Bloomberg Pointed out in a pre-Christmas post, everyone in the bank compares themselves to crypto teens worth $ 20 million, and that can be tough on TradFi’s ego.

The fact that Bitcoin has fallen around 12% since early January, and that Dogecoin is now down almost 80% from the May high when McMahon withdrew his money, might give some pause for thought. But crypto enthusiasts are not deterred, and many have given up successful banking careers on the strength of their beliefs.

Sam Peurifoy, the former Goldman Sachs analyst, who moved from the GS analyst class to CFO at Floating Point Group, a crypto trading platform, to partner with Hivemind Capital Partners, the company investment created by former Citi trader Matt Zhang, all in the span of three months last year, is among those who are convinced that FOMO crypto is a justifiable thing and is not going to go away .

2022 is the year the crypto markets will receive increased regulatory attention and established companies will receive greater clarification on what is a fair game, Peurifoy says. At the same time, he predicts that the metaverse and gambling opportunities will stimulate the growth of NFTs. “This goes hand in hand with the underlying social narrative of personal ownership over digital assets and data in a continuing setback against big ‘Web2-like’ technologies, ”says Peurifoy, who is now the head of interactive investments at Hivemind.

If you’re a Goldman analyst (Peurifoy was on the cleantech investment research team) or any other type of commercial banker, and you’re considering throwing everything away for a crypto job, however, advice from Pleurifoy doesn’t necessarily have to go all-inclusive. He suggests staying local. “- Crypto is still a nascent industry, but many traditional financial firms are setting up internal teams to explore how they can get the most out of digital assets. Based on your occupational risk profile and how you feel about your current business, I recommend that you first dig around and see if HR has a way for you to explore your interests without having to get off the ship. “

If you’re really good to go, Peurifoy recommends that you make sure you know what you’re getting yourself into. “Sread top crypto research sites and establish a very good understanding of the different components of the industry (e.g. smart contract infrastructure, currencies and payment platforms, borrowing / lending and asset management, data and identity, NFT and entertainment).”

Learning crypto isn’t hard, but it can be a maze. Michael bressler, the former managing director of commodities at JPMorgan, who is now the global sales manager at GSR, the maker of the crypto market, says the best place to start is what’s called “Twitter crypto.” RSGs own twitter account is to be continued. “No one has 10 years of crypto experience. At this point, if you have one year of crypto experience, you will have more experience than half the market,” Bressler told us shortly before Christmas.

In other words, if you switch to a crypto role now, you could be in a very good position in 2025.

Kyle Downey, former managing director of e-commerce at Morgan Stanley, is one of those who stepped down for the crypto industry last year and is showing all signs of prosperity. Downey left MS after 17 years in October to create Cloudwall Capital, a platform to help institutional investors manage their digital asset portfolios. In the digital future, every asset will be symbolized in the blockchain economy, says Downey. He considered this vision worth leaving Morgan Stanley for.

Cloudwall Capital is hiring. – He already has an operations manager for Nomura (ex-Morgan Stanley) in Singapore and a research manager is Tokyo. If all goes well, Downey says the company will likely add 15 people this year, mostly in New York and Singapore. Downey is obviously a career-changing pro-crypto. He says the best thing to do is start trading: “Trading makes you responsible for your learning in ways that just reading doesn’t. Almost everyone I know in space started out this way, and most are still actively trading. If you’re a coder or a quant, Downey advises finding something to analyze and build: “This space rewards doers more than speakers.”

Other suggestions are to think long term and avoid skeptical colleagues. “Look up,” says a former Goldman trader who made a small fortune on his crypto investments, referring to the Netflix movie starring Leonardo Di Caprio. “I begged people to have crypto a year ago, but they laughed.”

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