New survey shows number of blockchain firms operating in Switzerland and Liechtenstein’s Crypto Valley soars by 20% in fourth quarter of 2018.
A new survey shows the number of blockchain firms operating in Switzerland and Liechtenstein’s Crypto Valley has grown by 20%.
Despite the massive drop in the value of cryptocurrencies over the past year causing the value of the 50 largest Blockchain companies based in Crypto Valley to fall from US$44 billion to $20 billion in the fourth quarter of the year, the number of companies engaged in the sector actually grew 20% from 629 to 750.
Notably, this total also included 4 so-called ‘unicorns’, or start-ups already valued at billions. The study, conducted by CV VC found that despite the ‘Crypto Winter,’ Switzerland and Liechtenstein now account for around 20% of the global blockchain market.
2018 might have seen the value of the global crypto market plunge to $130 billion (according to Coinmarketcap), but the average value of the top 50 companies is still a healthy $400 million each, and remains at $365 million each even if you exclude the five largest. The average valuation of all 750 companies, according to the CV VC reports was around $27 million, but the four unicorns of Crypto Valley, Bitmain, Cardano, Dfinity and Ethereum were all valued at over $1 billion each.
Though more than half of the Swiss blockchain firms are based in the canton of Zug, Crypto Valley also encroaches on other cantons, with 42 companies in Geneva and 39 in Ticino. The tiny state of Liechtenstein also has 38 crypto companies registered.
Interestingly, despite the substantial value of the companies, only around 480 people work in Switzerland and Liechtenstein in the 50 largest blockchain companies, and overall the industry only employs around 3,300. This clearly illustrates something identified by AYO.NEWS previously – that although blockchain companies can add significant wealth to countries, politicians and planners should realise that they are never going to make a meaningful impact on employment numbers.
The report reinforces the argument that whilst retail-driven digital asset investment may have been in crisis, the underlying commercial blockchain infrastructure is going from strength-to-strength, setting the stage for sustainable future growth (see SWISS FINANCIAL HEAVYWEIGHT VONTOBEL LAUNCHES DIGITAL ASSETS CUSTODY SOLUTION).
The full report can be seen here.
