Originally published on Forbes.com
The ethos of the crypto industry is based upon decentralization, innovation, and democratization, and crypto advocates often pride themselves on challenging traditional norms. Yet, as the industry matures, questions around gender equality, particularly concerning pay disparities, have become increasingly worthy of scrutiny. While some indicators would suggest that crypto is a green field of opportunity for women, including its generally remote friendly work environments and progressive attitudes; other indicators like the historically low female participation in the crypto industry and the trickle of venture capital investment into female-founded crypto startups, point to a more complex picture.
According to the latest Web3 Finance Compensation Report,women in Web3 finance earn 46% less than men on average, which is significantly higher than in Web2 finance where the pay gap is 39% in the United States and 28% in the United Kingdom. Another relevant statistic is that VC investment in female-founded crypto startups doubled in 2024, but from the low starting point of 3.5% of all deals to 7% of all deals.
A recent Bitget study confirmed this observation, finding that over 90% of funding raised by blockchain startups went to male-led projects. In a relatively nascent industry like crypto, where initial capital is often pivotal for scaling and success, this gender disparity in receiving startup funding can lead to broader inequities, including pay gaps.
In addition to the well-documented lack of diversity amongst VC investors and the general tendency to be more comfortable investing in those that look, sound, and talk like themselves, there may be other more subtle reasons for the gender pay gap in crypto. According to Jocelyn Cheng, Head of DCG Expeditions, one contributory factor for this gender pay gap may be the types of questions that VC investors ask female founders during fundraising discussions. A study by the Harvard Business Review reveals that male and female entrepreneurs are often asked different types of questions by VCs, which significantly impacts their ability to secure funding. VC investors tend to adopt a promotion orientation when interacting with male entrepreneurs, asking them questions about their aspirations and potential for growth. In contrast, investors tend to adopt a prevention orientation when interacting with female entrepreneurs, asking them questions about their ability to manage risks and avoid losses. Notably, both male and female investors display this bias.
This disparity in questioning has significant implications on gender equality in startups, including crypto startups. The HBR study observes that entrepreneurs who were asked mostly prevention questions raised about seven times less for their startups than entrepreneurs who were asked mostly promotion questions. This perpetuates a cycle where women, who may be perceived as more risk-averse or less ambitious, receive less funding than their male counterparts. As startups with at least one female founder tend to hire orders of magnitude more women and generate higher returns than startups with an all-male founding team, this gender funding gap represents a missed economic opportunity that can further exacerbate the gender pay gap in Web3 and crypto more broadly.
However, the data are not always consistent and it is worthwhile to examine studies that find that not only is there no gender pay gap in the crypto industry, it is actually reversed. Pantera Capital (the first U.S. institutional asset manager focused exclusively on blockchain technology) recently conducted a study on the gender pay gap in the crypto industry. They found that the crypto industry’s gender pay gap is “reversed,” meaning that women earn more than men in crypto by a statistically significant margin. According to their data, crypto is the only industry other than Producers and Directors in the entertainment industry, where a reverse pay gap exists. This study offers an optimistic outlook on the opportunities offered by the crypto industry for women to thrive. However, Pantera also highlights that the reverse pay gap may be partially attributable to the fact that women in crypto tend to be more experienced and often enter the industry at more senior positions than men, and that there are fewer females in the crypto industry to begin with.
Despite the Pantera study’s suggestion that the crypto sector is progressive in its compensation practices, the broader evidence points to the existence of a gender pay gap in crypto. Multiple studies reveal underlying systemic biases that may contribute to gender-based disparities in earnings and opportunities. Additionally, the legacy of low female participation and the ongoing gender divide in crypto investment suggest that there may be structural challenges that still need to be addressed. As the crypto industry continues to evolve, ensuring gender equality will require not just a commitment to fair compensation practices but also a concerted effort to eliminate biases in funding, leadership opportunities, and overall industry culture.