At the beginning of 2020, all was still right with the world. Crypto Valley Week was taking place during the World Economic Forum in Davos, where entrepreneurs, investors and academics from Europe, the US, Africa, the Middle East and Asia were coming together and making plans for collaborations, projects and the further development of blockchain technology. Then the Covid 19 virus infected the world and abruptly put the brakes on the spirit of optimism. Crypto Valley was paralyzed for the first moment. Would investment in startups dry up? Would projects be postponed or even stopped? Would Crypto Valley become a Death Valley?
Today, one year later, we know that the gloomy forecasts fortunately did not come true. On the contrary: Crypto Valley is healthier and more robust than ever before. The latest CV VC Top 50 Report speaks a clear language. It’s not just that the number of companies, employees and unicorns has risen to a record high. Rather, the valuation of the 50 largest companies has increased by a staggering 680 percent in the last eight months, from $37.5 billion to $254.9 billion. This literal explosion is not just due to the rise in the value of cryptocurrencies. It’s investors getting in on startups and companies whose business models are based on blockchain.
The socio-economic environment caused by the Corona pandemic and the lockdowns has unmistakably demonstrated the importance of new technologies, namely decentralized solutions
Moreover, founders and investors consider Crypto Valley as one of the most regulatory safe and innovative blockchain ecosystems in the world. They acknowledge that the Parliament unanimously (sic!) passed the new blockchain legislation, a highly complex legal matter that affects ten existing laws, divided into the three areas of the Civil Code, bankruptcy law and financial market law. The first part, defining the term token through a new article in the Civil Code, has been in force since February 1, and the second and third parts will follow in the summer. Suddenly, new opportunities are opening up, namely in the area of tokenization and marketplaces, which the fledgling blockchain industry is eagerly awaiting. The new DLT trading license, which is explicitly tailored to the latest technologies, goes a long way in terms of content, allowing trading in Switzerland, custody and certain payment activities, and paves the way for the long-awaited secondary markets for securities tokens.
Our Board member and former Swiss President Johann Schneider-Ammann put it in a nutshell in a recent editorial in the Neue Zürcher Zeitung: “Switzerland has the potential to become the world’s leading blockchain hub.” The conditions are better than ever. The socio-economic environment caused by the Corona pandemic and the lockdowns has unmistakably demonstrated the importance of new technologies, namely decentralized solutions. They have received a real boost, flanked by innovation- and business-friendly framework conditions in Switzerland.
In addition to a spirit of optimism, further investment and visionary entrepreneurs are a required for Crypto Valley to shine out into the world with new business models and the champions of tomorrow.
Momentum is on our side — but not exclusively, and on this point I agree with Johann Schneider-Ammann. We have to use the first-mover advantage. Everyone must be aware that the future is emerging in Crypto Valley. The potential is immense. New blockchain companies continue to locate here. Company valuations continue to rise. However, in addition to a spirit of optimism, further investment and visionary entrepreneurs are a required for Crypto Valley to shine out into the world with new business models and the champions of tomorrow. I am convinced that we will succeed in this.
A massive boost for Crypto Valley that we need to take advantage of was originally published in CV VC on Medium, where people are continuing the conversation by highlighting and responding to this story.