At the beginning of the Corona crisis, it was not clear how the lockdown would affect the Crypto Valley and the blockchain companies. The latest CV VC Top 50 Report indicates that the crypto region has in fact experienced growth.
Certain observers feared that the prosperous, world-leading blockchain ecosystem could become a "Death Valley". But the latest CV VC Top 50 Report now reveals that these predictions have not come true. On the contrary, The Crypto Valley is in a robust, mature state and has grown in the first half of 2020.
More companies and more employees in the Crypto Valley
The number of companies in Switzerland and Liechtenstein dealing with blockchain technology has increased to 919. At the end of 2019, this figure was 842. The number of employees has also increased over the same period from 4400 to 4780. There are nine blockchain hotspots in the Crypto Valley: The Canton of Zug as the heart of Crypto Valley with 439 companies, followed by Zurich (161), Liechtenstein (84), Geneva (49), Ticino (44), Neuchâtel and Vaud (28 each), and Lucerne and Berne with 18 each.
According to the CV VC Top 50 Report, the 50 largest Crypto Valley companies have a combined market capitalization of 35.5 billion dollars or 10 billion more than at the end of 2019 (25.2 billion dollars). Six companies are Unicorns with a market valuation of over $1 billion: Ethereum ($25.3 billion), Cardano (2.2), Dfinity (2), Tezos (1.8), Polkadot (1.2) and Libra (1).
Positive development despite pandemic
"The development in the Crypto Valley makes us confident despite the Corona pandemic. There is a steady stream of new start-ups that are being founded and moved into the Crypto Valley. In addition, as established companies consider blockchain technology, digital assets and crypto currencies important for their future activities, the quality and maturity of blockchain projects and companies is constantly increasing" - Mathias Ruch, CEO and founder of the Zug-based investment company CV VC, which publishes the Top 50 Report.
For some start-ups, the reluctance of investors due to the Covid 19 lockdown was a challenge. Nevertheless, substantial amounts of money flowed into the 50 largest companies in Crypto Valley. Substantial financing rounds were completed by Bitcoin Suisse ($48 million), 4ART Technologies (45 million), Metaco (20 million), Crypto Finance (14 million), Near Protocol (12.1 million), Taurus Group (8 million), Sygnum Bank (amount undisclosed).
Excellent framework
For Ralf Kubli, author of the CV VC Top 50 Report, there are various reasons for the growth in the Crypto Valley:
"Switzerland has an excellent regulatory framework and next year will adopt one of the world's most advanced blockchain legislation. This attracts serious entrepreneurs and investors to the Crypto Valley. Moreover, the leading blockchain protocol developers such as Ethereum, Cardano or Tezos are all located in Switzerland. This greatly increases the global appeal of Switzerland as a blockchain ecosystem and the attractiveness of the Crypto Valley for entrepreneurs, researchers and investors".
Swiss financial center as an innovation driver for blockchain
The Swiss financial center and the boom in the Fintech industry have a significant influence on the Crypto Valley. Numerous companies are looking into the introduction of digital assets, crypto-currencies and the decentralized infrastructure (storage and processing). It is apparent, and this is the great advantage for the Crypto Valley, that clear and liberal legal regulations and framework conditions favor innovation in the blockchain ecosystem of Switzerland and Liechtenstein.
It can be assumed that the legal adjustments in the blockchain area will be implemented as early as 2021. Together with the ongoing professionalization and the increasingly available infrastructure, the blockchain ecosystem will reach a new level next year, which has the potential to position Switzerland globally as the leader of a new industry for digital assets.
