The Dramatic Decline in Valuations
The world of blockchain in Zug, affectionately dubbed “Crypto Valley,” took a tough beating in 2019, with the valuations of the top 50 firms plummeting nearly 50%. The Swiss investment firm CV VC unveiled a sobering report during the illustrious World Economic Forum in Davos, highlighting the crypto rollercoaster ride that year.
Valuation Woes and Ether’s Influence
According to the report, the downturn largely stemmed from the dropping prices of Ether (ETH), the native token of the Ethereum network. Valuations for our top 50 darlings dwindled from an impressive $42.6 billion in the first half of 2019 to a mere $25.3 billion in the latter half. Ether’s struggles were no secret; it felt like it had taken a trip to the bottom of a crypto well.
Money is Still Flowing In
Don’t count the Crypto Valley out just yet! CV VC director Ralf Kubli shared a refreshing perspective: funding inflows to these top firms grew, demonstrating that real capital is still pouring into promising projects. Specifically, total funding across the top 50 escalated from $3.8 billion in H1 to $4 billion in H2 of 2019. Sounds like a silver lining, right?
Job Growth Amidst the Uncertainty
Adding to the optimism was the rise in employment opportunities within Switzerland’s blockchain sector, boasting a broader workforce of over 4,400 professionals. The top 50 firms alone account for 733 of those jobs – a bee’s nest buzzing with activity even in the stormy weather of valuation drops!
New Players Enter the Game
2019 was not just about setbacks; it also introduced several exciting newcomers to the roster of top 50 companies. The likes of Libra, Bittrex Global, and Ethereum development firm CasperLabs made their debuts, shaking things up. And let’s not forget a few unicorns—yes, real unicorns— including Bitmain, PolkaDot, and DFinity. Who knew Crypto Valley had room for so many mythical creatures?
The Road Ahead for Blockchain
In summary, despite the rocky valuation landscape, the indicators suggest a maturing cryptocurrency and blockchain industry. With 842 firms now operating in Switzerland, it appears Crypto Valley is still very much alive and willing to fight another day. So, hold on tight, crypto enthusiasts, because the adventure is just getting started!
