A new study on blockchain businesses in Switzerland and Liechtenstein shows that they have doubled since 2017. Indeed, a Zug-based blockchain incubator and investor, CV VC, in collaboration with consulting firm, PwC, conducted the survey. The report noted that there are about 50 blockchain companies in the two countries. Also, the report examined the activities of blockchain activities in Swiss Crypto Valley, another name for the Swiss city of Zug. Although the slogan originated in Zug, its use has since expanded to its territories in Switzerland, up to Lichtenstein. No doubt, the slogan is more relevant now that the world is experiencing a boom in the cryptocurrency and blockchain industry.
Details of the Crypto Valley Report
According to the report, there are over 600 blockchain companies in Switzerland and Liechtenstein. It also stated these companies have engaged over 3,000 employers in the two countries sampled. That’s not all. The report noted that of the 600 companies, the top 50 of them are valued at over $44B USD, even as the top 5 startups are worth $1B USD each. Of course, there were certain guidelines that were given to companies before being featured in the report. The most important was that the blockchain must be a core part of their business. As for the second condition, the company must have an employee working in Switzerland or Liechtenstein. The third, and final condition, is that the company must contribute to the growth of Crypto Valley.
Criteria for the Survey
In addition to meeting the aforementioned three conditions, there are other criteria that Crypto Valley companies must meet.
- Must have raised about $10M USD in funding
- Participating companies must be valued at $10M USD
- Possession of 10 full-time positions in Switzerland or Liechtenstein.
In all, the report focused mainly on brokerage, exchange, and custody, or developing virtual currency platforms and protocols.
Survey Findings on Crypto Valley
Indeed, the findings of the report were revealing. According to the report, the unicorns among the 50 companies surveyed accrued the highest valuations. Indeed, they achieved this through a combination of revenue stream, on-chain assets, and capital funding. The firm sourced the data for the survey from ICObench, LinkedIn, Crunchbase, CoinMarketCap, and Desk Research.
Interestingly, Ethereum finished at the top of the report, as it has a robust base in the Valley. With a market cap of $20B USD, Ethereum Foundation makes huge impact in the Valley with over $18.4M USD. Another firm that made a golden appearance on the list is cryptocurrency mining firm Bitmain. In fact, Bitmain has raised $450M USD in capital with a total valuation of $12B USD.
The Crypto Valley has become popular for its crypto friendliness, and the presence of the crypto companies are positively impacting the local economies. While some countries like Malta have tried to copy the Crypto Valley model, other countries like the United States still struggle to define regulatory guidelines. As a result, court cases and legal actions have become the order of the day.
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