Right now, most of the crypto industry around the world is suffering through a “crypto winter,” which is a term to explain how so many coins and progress have been metaphorically frozen in place. However, it does not look like the Swiss Crypto Valley has had the same misfortune. Instead, they have managed to see their businesses and economy grow.
Cryptocurrency and blockchain companies have seen their entire businesses affected by the falling prices, most of which have offices in Switzerland and Liechtenstein. During the winter, the top 50 companies managed to lose over half of their multi-billion-dollar valuation, based on a report by Crypto Valley Venture Capital (CVVC). The report also featured research by PwC, Strategy&, and Inacta.
New businesses in the area, however, have been thriving. Previously, there were 629 businesses in the region, but that has grown to 750, which is a 20% increase, or 120 new businesses. This is just the growth for the fourth quarter of last year. Four of those businesses have become unicorns and are worth billions of dollars presently.
The study’s authors estimated that the full value of the top 50 performing businesses are about $400 million each, based on an average of the total valuations. Even with the top 5 taken out, the average figure still remains at $356 million. The four businesses that are over $1 billion are Ethereum, Dfinity, Cardano, and Bitmain.
The same top 50 business have just under 480 people employed by their offices, though the sector as a whole is the source of 3,300 workers. The other numbers show that the market is “business as usual,” even with the drop in the market.
Researchers discovered that the Crypto Valley in not only increasing in businesses but in their geographical size as well. Just over the majority of companies are centered in Zug (51%), while surrounding Swiss regions are where the rest are scattered, like Geneva and Ticino.
The numbers from the third quarter show that 15 new companies joined in the last three months of 2018, which are:
- 4 Technologies
- Mt. Pelerin
- Quant Network
- Token Pay Swiss
- WPP Energy
- Zulu Republic
There are presently another 10 startups that are hoping to join the success that so many others have found in the area. Switzerland, Liechtenstein, and multiple others are working with a group of jurisdictions in Europe to make an environment that is positive for businesses in the crypto industry. The decentralized political system and financial privacy in the area make it possible to expand the Swiss Crypto Valley.