Study shows that Switzerland is less affected by the crisis of the crypto industry - Economics
Study shows that Switzerland is less affected by the crisis of the crypto industry - Economics
While the global industry loses money around digital assets and breaking up jobs, Switzerland seems to survive the storm relatively well, a study claims. In fact, more crypto companies in the country have settled in the past turbulent year than those who have left it or the overall business.
Crypto Valley in Switzerland holds population despite crypto winter
The market decline and the collapse Cryptocurrency exchange FTX and the Terra-Luna ecosystem sent shock waves through the industry. The negative events of 2022 led to losses for investors, customers and companies, while large actors such as Coinbase and Genesis announced layoffs.
Data compiled by the risk capital company CV VC, however, show that crypto -friendly Switzerland has experienced nothing too spectacular, reported Swissinfo. According to the report "Top 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 with a center in the canton of Zug now has about the same number of entities as in 2021 - currently 1,135. They employ 5,766 people, that is only around 4 % less than before the start of the crypto winter.
The best known companies registered in Switzerland that went under, were FTX Europe and the crypto asset manager Covario. "The Swiss branch of the Britain-based crypto loan Nexo is also examined after the company's Bulgarian offices have been examined , notes the news portal.
In the meantime, none of the other big names have admitted that it is severely affected by the ongoing volatility in the industry. One of the reasons for this, according to the article, is the attitude of the Swiss authorities to potentially corrupt companies.
For example, the Swiss financial market supervision blocked an attempt by the FTX subsidiary to take over the Swiss Neue Privat Bank, and justified this with the insufficient regulatory supervision of the other global activities of the group.
The CV VC study also shows that the evaluation of the 24 leading blockchain companies has risen by 55 % to $ 9.7 billion, although crypto-assets have lost considerably in value. The biggest winners among them are 21-shares, an issuer of crypto-based stock exchange certificates, and GNOSIS SAFE, which manages Ethereum-based assets. According to the report, both were evaluated with over one billion dollars.
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