As the global industry built around digital assets loses funding and jobs disappear, Switzerland appears to be weathering the storm relatively well, according to a study. In fact, more cryptocurrency companies moved into the country in the past year than left or left the industry altogether.
Switzerland’s Crypto Valley Maintains Population Despite Crypto Winter.
The market downturn and the collapse of platforms like the FTX cryptocurrency exchange and the Terra-luna ecosystem sent shockwaves through the industry. The negative events of 2022 resulted in losses for investors, customers and companies, while major players such as Coinbase and Genesis announced layoffs.
However, data collected by venture capital firm CV VC shows that cryptocurrency-friendly Switzerland has not witnessed anything too spectacular, Swissinfo reports. According to his reportTop 50“, 183 Swiss blockchain companies went bankrupt last year, but 190 startups and foreign companies opened new offices.
The researchers also found that the Swiss crypto valley, centered on the canton of Zug, has roughly the same number of units as in 2021 – currently 1,135. They employ 5,766 people, only about 4% less than before the start of the crypto winter. .
The most prominent Swiss-registered companies that have sunk are FTX Europe and crypto asset manager Covario. “The Swiss arm of British cryptocurrency lender Nexo is also in the crosshairs after the firm’s Bulgarian offices were raided“, says the news portal.
Meanwhile, none of the other big names admitted to being seriously affected by the current volatility in the sector. One of the reasons for this situation, the article points out, is the attitude of the Swiss authorities towards potentially corrupt companies.
For example, the Swiss Financial Markets Authority blocked an attempt by subsidiary FTX to acquire Swiss bank Neue Privat, citing insufficient regulatory oversight of the group’s other global businesses.
The CV VC survey also shows that the valuation of the top 24 blockchain companies increased by 55% to $9.7 billion, despite the fact that the crypto assets lost significant value. The biggest winners among them are 21Shares, an issuer of cryptocurrency-backed exchange-traded certificates, and Gnosis Safe, which manages Ethereum-based assets. Both were valued at over $1 billion, according to the report.