As a seasoned crypto investor with roots deeply entrenched in both Israel and the global blockchain industry, I find myself navigating the complexities of the current geopolitical climate with a mix of concern and optimism. The ongoing Israel-Hamas conflict and subsequent emigration trends have undeniably left their mark on the Israeli tech sector, including the blockchain industry.
A year since the outbreak of the Israel-Hams conflict, the Israeli blockchain sector is grappling with the increasing political instability in the area, as some skilled professionals show reluctance towards accepting positions within their territory.
As an analyst, I’ve had the opportunity to engage with Israeli business leaders regarding their perspectives on the nation’s blockchain industry. Despite any challenges that may be present, these leaders remain hopeful and optimistic about the sector’s future growth.
According to data from Statista published in August, approximately 60,000 Israeli residents had left their country over the past 24 months as of May. Moreover, the business intelligence platform reported a notable 25% surge in emigration rates since February 2023.
The figures have led to fears about a so-called “brain drain” in the state as emigration outstrips immigration.
In August, Aaron Ciechanover, a Nobel laureate in biology, speaking at Kibbutz Nir Oz and as reported by The Times of Israel, stated that there’s a substantial exodus occurring within the nation.
Ciechanover expressed concern over the upcoming scarcity of physicians and pointed out challenges in hiring medical professionals within academic institutions. He further emphasized that if approximately 30,000 such individuals were to depart, there might not be a nation left behind.
The blockchain sector is not immune to the vagaries of war. Yaniv Baruch, chief operating officer of Tel Aviv-based GameFi project Playnance, told CryptoMoon, “Recruitment has indeed become more challenging” in the current environment.
“There has been a noticeable decline in job mobility within the tech sector.”
Among the news outlets reporting an increase in people leaving after the October attacks, The Times of Israel and The Jewish Independent are two of them.
Baruch mentioned that the doubts about uncertainty and safety issues have caused some experts to be cautious when considering new job prospects or moving locations.
Taking positive steps
Despite having no direct influence on the persisting dispute, individual businesses and entrepreneurs haven’t remained idle. Instead, they’ve proactively found ways to adapt and respond to its impact.
According to Baruch’s statement, “We’ve expanded the geographical scope of our hiring process, not limiting ourselves to local candidates but also welcoming remote workers.
In an industry like blockchain where numerous jobs are typically performed remotely, it’s only logical that there’s a growing preference for hiring remote workers to fill available positions.
As an analyst, I find myself in a position where this transition towards remote work opens up a vast, global talent pool. From any corner of the globe, these skilled professionals can now contribute significantly to our endeavors.
In addition, we’ve highlighted the unique aspects of Playnance – our work with cutting-edge blockchain technology and our position within an innovative, progressive team. This draws in enthusiastic individuals who are eager to contribute significantly to the fields of fintech and blockchain.
The personal and political
2023 saw a higher rate of people leaving Israel, which is a verified statistic. However, drawing conclusions from such numbers alone can sometimes be challenging and may require careful interpretation.
The Israel-Hamas clash led to a swift increase in people leaving, yet some analysts also point out that judicial changes at the beginning of the year, which diminished the legislative authority of Jewish courts, could have played a role as well in this trend.
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People have various personal motivations for deciding to move to a new location. Misha Lederman, who leads strategy at FitFi app Sweat Economy, is one of the Israeli expatriates living in Europe. Based in Lisbon, where Sweat Economy’s headquarters are located, he resides there.
Like many emigrants, his reasons for living outside of Israel are personal, not political.
During his conversation with Lederman, CryptoMoon expressed nothing but praise towards Israel and its blockchain industry. He highlighted Israel’s “entrepreneurial spirit” and “a mix of tenacity, creativity, foresight, and a global outlook,” along with a robust focus on education, as key factors contributing to the country’s success in this sector.
Lederman delved deeper into the subject, outlining the crucial role that Israel’s military played in their triumphant narrative.
In simple terms, Lederman noted that the close association of the Israeli military with the civilian population significantly contributes to fostering technological expertise, notably in the fields of cybersecurity and cryptography. Israel has become a prominent player on the international stage in these areas.
As an analyst, I’ve noticed a significant trend: A large number of tech entrepreneurs I’ve encountered have military backgrounds, particularly from the cybersecurity units within the Israel Defense Forces. These units seem to be a fertile ground for nurturing elite blockchain and Web3 innovators.
A mood of optimism persists
Looking at the future of the Israeli blockchain industry, both Baruch and Lederman are positive.
Baruch expressed strong confidence in the future of blockchain in Israel. He believes that despite any current hurdles, our nation continues to be a significant player on the global development stage. Israel boasts an exceptionally high number of startups relative to its population – over 6,000 startups spanning various tech industries. This bustling environment fosters innovation and creativity, making it particularly suitable for nurturing blockchain technology growth.
According to a recent study on top startup locations worldwide, conducted by Startup Genome, Tel Aviv ranked as the 4th most attractive region for startups. Interestingly, it moved up one spot from its position in the previous year, placing it above other cities such as Boston and Beijing. This places it behind only Silicon Valley, New York, and London.
Contrarily, it’s clear that Israel’s economy is under pressure. Its growth rate has decelerated, and its debt levels are escalating. On October 1st, Standard & Poor’s lowered Israel’s credit score from A+ to A.
Despite the difficult economic conditions, Lederman highlights data suggesting that Israel continues to play a significant role in the blockchain industry.
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Even with only a population of 9 million in the year 2024, Israel manages to contribute an impressive 4.5% to worldwide Web3 venture capital investments. This underscores its significant impact within the global tech sector,” he noted, referring to a report published by Crunchbase in September.
Lederman noted that Israel’s innovative use of blockchain technology puts it at the forefront of developing new technologies within the realm of Web3, making it a significant figure in the international cryptocurrency scene.
Other countries could benefit from studying Israel’s collaborative, innovative environment, where it prioritizes the integration of military and civilian technology sectors, and places great importance on developing cybersecurity. This is particularly relevant for advancements in blockchain and Web3 technologies.
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2024-10-25 16:52