During times of economic contraction companies are forced to reevaluate their costs and spending. In some instances, laying off employees is one of the first things businesses do in order to trim some fat and maintain profitability during less than favorable economic conditions.
Without inflation or interest rates coming down, companies in every sector are battening down the hatches and preparing for a tedious road back to growth as the prospect of a healthier economy seems to dwindle. We are seeing this today in nearly every industry as inflation, rising interest rates, and increased commodity prices force executives to make tough decisions. Snapchat (NYSE: SNAP) recently announced they will be cutting ties with 20% of their workforce. Peloton (NASDAQ: PTON) followed suit, removing 20% of their staff as well. Even electric vehicle maker Rivian (NASDAQ: RIVN) fired 6% of their employees to mitigate rising costs.
Although some believe cryptocurrencies and blockchains are insulated from economic downturns, companies in this burgeoning sector are following the same path as more traditional counterparts. Cryptocurrency exchange Coinbase (NASDAQ: COIN) sent ripples through the sector when it announced they would be parting ways with nearly 18% of their employees. Just a few weeks later, OpenSea, the most popular non-fungible token (NFT) marketplace, let go of 20% of its employees.
Polygon's hiring spree
Yet, there is one blockchain company that is taking a different course of action in preparation for the next bull market. On Sept. 8, the most popular Ethereum (CRYPTO: ETH) layer 2, Polygon (MATIC -0.62%), announced that they will be increasing their workforce by 200 employees, or nearly 40%. As a layer 2, Polygon streamlines Ethereum by processing transactions on its own blockchain and then adds them Ethereum blockchain at a later date. In doing so, Polygon users get access to increased speeds and minimized fees while still maintaining the decentralization and security of Ethereum.
The goal of the hiring spree is to onboard a diversified mix of contract and full-time workers to capitalize on the woes that other crypto companies have been entrenched in since the market took a nosedive this year. Targeted positions include software engineers, project managers, and other staff to manage future partnerships.
When it seems that many companies are looking to consolidate operations, Polygon is adding talent and resources in hopes of solidifying itself as the dominant blockchain for all things Web3.
Based on its accomplishments in 2022, even in a bear market, all signs point to Polygon achieving that goal. In addition to a fresh round of $450 million in fundraising, the blockchain has partnered with some high-profile companies that include names like Coca-Cola (NYSE: KO), Disney (NYSE: D), Meta (NASDAQ: META), Robinhood (NASDAQ: HOOD), and OpenSea.
Polygon's blockchain is becoming a favorite for NFTs due to their low fees and quick speeds, something buyers, collectors, and even companies are starting to take advantage of. Last month, Coca-Cola launched a surprise set of NFTs on the blockchain. Back in May, Meta announced that Polygon-based NFTs will be coming to Instagram and Facebook. And arguably the most significant NFT development came this August when OpenSea made the decision to offer Polygon NFTs.
Much more than just NFTs
However, Polygon's capabilities extend much further than just supporting NFTs. Polygon's ultimate goal is to become the home of the new age of the internet, known as Web3. The current stage, dubbed Web2, refers to the internet we are familiar with today where companies provide services in exchange for your personal data. With Web3, the internet becomes completely decentralized, permissionless, and completely open source.
Based on comments from Polygon developers, they believe that Ethereum will be the primary blockchain of Web3. But in order for Ethereum to reach the masses cost effectively and Web3 to become mainstream, Polygon will need to be utilized. Co-founder of polygon, Mihailo Bjelic, envisions Polygon eventually becoming "the holy grail of Web3 infrastructure." He believes the ideal Web3 blockchain should possess three primary characteristics: "scalability, security, and Ethereum compatibility" -- something Polygon surely possesses.
With the added staff and resources Polygon has obtained so far in 2022, it looks as though the blockchain should accomplish its goal in the coming years. When considering all of the partnerships and developments that Polygon has made this year, it's surprising that its native token MATIC is down more than 70% from its all-time high.
The long-term potential of Polygon and the future development of Web3 are difficult to ignore. Investors looking to take a stake in the evolution of the internet should consider allocating Polygon to their portfolio.
