Switzerland: Crypto companies are holding up well
Switzerland is without a doubt one of the countries with most crypto companies in the world. For this reason, the current bear market could have hit the Swiss crypto industry hard. Instead, it turns out that the problems are not so great that they send the local industry into crisis.
Crypto companies in Switzerland are handling the current bear market quite well
A survey was recently carried out among various companies in French-speaking Switzerland, which showed that the current unfavorable situation has not had a detrimental effect on them.
However, there are those who believe that the real collapse may yet come.
According to the director of the Swiss crypto company Metaco, Adrien Treccanicould the coming collapse be a disaster for many Swiss crypto startups, so much so that 20% or 30% of them may disappear within the next six months.
For now, Switzerland’s crypto ecosystem appears to have held up well, but the fact that the bear market is not yet over could still cause damage. However, it is possible that this damage will not affect the entire system, but either less solid and established companies.
There are now more than 1,000 crypto and blockchain companies in Switzerland with a total of approximately 6,000 employees. So far, there are no significant cutbacks or bankruptcies of major crypto companies, but that could change.
In fact, as claimed by managing partner of Zug canton headhunting firm Wirz & Partners, Erik Wirz, a lot of money entered the crypto markets last year, brought in by unwary investors who were just hoping to cash in on the bull run. Now, however, these retail investors are getting their feet back on the ground, according to Wirz, and this could mean that capital inflows into the crypto markets turn out to be negligible.
The director of Bitcoin SwitzerlandZug office, Dirk Kleesays that even now some Swiss crypto companies are struggling to avoid bankruptcy, but only time will tell how this will actually play out.
The Zug area has the highest concentration of crypto companies in Switzerland, so it’s definitely an interesting litmus test to consider.
The cryptocurrency market still has a long way to go
While there are those, such as the founder of crypto-finance company AlgoTrader, Andy Flurywho claim that such crashes are the norm in crypto markets, there are also such, as Valour’s Chief Strategy Officer Diana Biggswhich points out that there is still a lot of experimentation in this area.
Flury points out that, for example, none of their customers have pulled out of contracts, or delayed ongoing projects, and these include ten large banks. He also claims that the crash in the crypto markets has not affected long-term strategies for large financial institutions when it comes to digital assets.
The Director of the Swiss Financial Market Authority (Finma), Urban Angehrnrecently said that much of the trading of digital assets resembles the US stock market in 1928, but emphasized that this type of abuse is frequent and common in financial markets.
Besides, he added that Speculation is a legal activitybut one must operate according to the rules and in a transparent manner.
To again quote Adrien Treccani’s words, the bursting of the bubble will filter and simplify the crypto market, while opening up new opportunities.
