A City Riddle: When a crypto security company closes their HQ because of city crime?
Kraken is a well known cryptocurrency security company based in San Francisco on Market St. They were one of the early entrants in the crypto exchange space offering customers a security-forward experience for trading crypto. While this post will not focus on crypto crime and the recent jarring headlines about hacks involving millions of dollars of theft, a post for another day, Kraken is one of the largest US based crypto exchanges. They announced they will shut down their offices due to multiple employee safety incidents of robbery, assault and harassment while coming and going from the office.
What is really telling about this story is how
a city like San Francisco, that is next door to Silicon Valley, is one of the major centers for crypto startups and venture capital in the world has skyrocketing rents hovering around $3000 a month is facing crippling crime rates and living conditions for a homeless population of estimated 18,000 people.
Even more shocking is that Binance and Coinmetrics, both well established successful crypto companies are also leaving San Francisco even though they aren’t citing crime and employee safety as the reason for the move to remote operations.
Whether this news will lead to any major wake up calls for the San Francisco city administration remains to be seen, but it might just accelerate a shift for investors and founders to move their operations elsewhere like Austin Texas or Boston.