While the first warnings of a second crypto winter are underway, the latest numbers from Zug’s Crypto Valley show just how much the scene has grown in Switzerland in the meantime. Last but not least, the number of unicorns testifies to this.
The good news from the Zug crypto world is not for these days. Bitcoin, ether, and the like are accelerating, and investors are fleeing risk to safe havens. However, or even despite that, it is impressive how the blockchain community is growing. Latest annual report «CV VC Top 50» Now he shows that something that grows in Lake Zug can also withstand the ups and downs of the stock market – even if it’s not as highly valued as it used to be.
According to the report, at the end of last year, the 50 largest companies in Crypto Valley were valued at $611.8 billion, up 464 percent year-on-year. However, it should be noted that Ethereum alone – the important cryptocurrency project Ether – weighed $438 billion and increased in value by 411 percent.
Link to the traditional financial industry
However, it would be very easy to attribute the increase in value in Zug Crypto Valley to Ethereum alone, because another number is at least as eye-catching as the ranking of the blockchain leader. Vitalik Buterin Startup Founding: At the end of 2021, there were 14 unicorn companies in Crypto Valley, i.e. companies valued at $1 billion or more. A year ago there were eight, in 2019 there were only four. The value of the top 50 companies outside of Ethereum has also grown from $22.8 billion at the end of 2020 to $173.8 billion.
Of course, these are pure valuations, which are also largely based on the principle of hope, as the massive discounts in the cryptocurrency sector have shown over the past few days and weeks. But what gives the entire industry reason to believe that blockchain and its applications will have a successful future is not least due to the activities of the well-established financial world.
The CV-VC report lists a whole range of collaborations between the new crypto world and the “old” financial world, which has gradually expanded its range of services. Increasingly established banks allow their clients to buy and manage these assets, giving the crypto world access to the mass market.
Trust Valley in western Switzerland
In their report, the authors also draw attention to two other aspects of growth that are likely to be particularly important for Switzerland. In the shadow of Crypto Valley in western Switzerland, for example, appears Trust Valley, which includes companies focused on security solutions for the software and hardware industry. According to the report, these companies are particularly concerned with the traditional values of Switzerland, for example the abundance of experts, but also with regard to the myth of security that surrounds the financial industry in Switzerland.
The second point is related to NFTs, non-fungible tokens, which have attracted a lot of attention over the past year. Almost all protocols can provide the necessary infrastructure for such NFTs, but many challenges still need to be overcome regarding the connection between assets and tokens, according to the report.
Hiring boom as a reward
The rapid growth of Crypto Valley also has an advantage for Switzerland as it attracts many companies in the industry from abroad and therefore experts as well. This was not one of the reasons for the rapid drafting of the DLT Act, which guarantees the industry a good regulatory basis for its development.
Zug’s crypto industry now has more than 6,000 employees, which corresponds to a growth of 16 percent. The number of companies grew from 960 to 1,128.
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