Crisis-resistant: Swiss Crypto Valley grows and grows
Crisis? Not in Crypto Valley. The European crypto cradle has been on a steep growth curve during the pandemic, setting the course for the post-Corona era.
Crypto Valley is considered the hub of the European blockchain industry. Leading companies have settled primarily in the Swiss canton of Zug in recent years, turning the place into a Bitcoin Revolution crypto hub. Even the Corona crisis could not harm the region. On the contrary: Crypto Valley continued to grow last year.
Crypto Valley is flourishing
This is the conclusion of the latest Top 50 Report by CV VC (Crypto Valley Venture Capital) in cooperation with PwC. According to the report, the number of blockchain companies in Switzerland and Liechtenstein increased by 4.4 per cent from 919 to 960 between July 2020 and February 2021. Along with this, the employment figure has also risen. According to the report, a total of 5,184 people are already working in the blockchain sector, an increase of 8.5 per cent.
In addition, the market valuation of the 50 largest companies has made a significant leap forward. While the company valuation was still at 37.5 billion US dollars last summer, it has now risen to 254.9 billion US dollars. A growth rate of 680 percent.
Eleven of the 50 largest companies are „unicorns with a market valuation of more than one billion US dollars each“. These include the non-profit foundations of the largest blockchain protocols: Ethereum, Cardano, Polkadot, Aave, Cosmos, Solana, Tezos, Dfinity, Near, Nexo and Diem (formerly Libra).
Mathias Ruch, CEO and founder of the Zug-based investment company CV VC, is suitably euphoric:
After entering the Corona crisis in March 2020 with certain fears, we are now confident about the future. The positive development was already apparent in September. New start-ups continue to be founded and they continue to choose Crypto Valley. We are very pleased about this and it impressively confirms the strength of our blockchain ecosystem.
Switzerland as a crypto driver
The report underlines Switzerland’s special position in the adoption of decentralised financial technologies. While other European jurisdictions continue to struggle with the „crypto new territory“, Swiss legislators have created a blockchain-friendly climate over the years, in which innovative projects are not slowed down by regulations, but consistently promoted.
As a result, more and more FinTechs and crypto service providers are being attracted to the financial oasis, driving the „introduction of digital assets, cryptocurrencies and the decentralised infrastructure“. These are now benefiting from growing acceptance among institutional investors. At the same time, for the author of the report Ralf Kubli, the blockchain industry in Crypto Valley is still only at the beginning of a heyday.
With the newly introduced blockchain legislation, Switzerland has one of the most advanced blockchain legislations in the world and has thus created a strong and solid foundation for Crypto Valley to prosper – even in difficult times. In addition, the Corona pandemic has inevitably accelerated digitalisation, from which blockchain technology has greatly benefited. We expect more entrepreneurs and investors to be drawn to Crypto Valley.
Switzerland is already home to „many of the leading blockchain protocol developers“. The charisma ultimately leads to „a strong increase in the global charisma of Switzerland as a blockchain ecosystem and the attractiveness of Crypto Valley for entrepreneurs, researchers and investors“. The crypto-financial centre is also well positioned for the post-Corona era.