Crisis winners – top companies in Swiss „Crypto Valley“ grow by 680 percent
The top 50 companies in Zug’s crypto industry have gained 250 billion US dollars since the start of the Corona crisis.
A new report by a Swiss investment firm finds that the fifty largest companies in „Crypto Valley“ have increased in value by 680% since July 2020.
As the „Top 50 Report“ by Zug-based Crypto Valley Venture Capital (CV VC) reveals, the enterprise Bitcoin Loophole value of the top 50 crypto companies in the „Valley“ has increased from US$37.5 billion in July 2020 to US$254.9 billion in February 2021.
The number of employees in Zug’s crypto industry
The report explicitly highlights crypto companies based in the Swiss canton of Zug, known as „Crypto Valley“. The number of companies in this region has also increased since July, with an increase of 4.4% or 960 new companies noted. The number of employees in Zug’s crypto industry has also increased, with 5,184 more jobs added (8.5%).
As a result of these developments, Crypto Valley is now home to eleven so-called „unicorns“, i.e. companies with a company value of over 1 billion US dollars, all of them well-known projects: Ethereum, Cardano, Polkadot, Aave, Cosmos, Solana, Tezos, Dfinity, Near, Nexo and the Facebook crypto project Diem (formerly Libra).
Although observers had suspected at the beginning of the Corona crisis that the Zug crypto industry would be among the losers, the Valley has instead emerged as the winner of the crisis. Mathias Ruch, founder and CEO of CV VC, explains in this context:
„After entering the crisis in March 2020 with great fears, we are now confident about the future again. The positive development was already clearly visible in September. In the meantime, more crypto start-ups are being founded again, and they are choosing Crypto Valley as their location.“
Switzerland has long been a veritable Mecca for crypto startups, as the legal framework plays into the industry’s cards. Ralf Kubli, the author of the new report, also echoes this sentiment: „Switzerland has some of the most progressive legislation in terms of blockchain, which creates a strong and solid foundation for the sustainable success of Crypto Valley.“
In September 2020, the canton’s government had announced that the region’s population and businesses could pay taxes of up to 100,000 Swiss francs (CHF) in Bitcoin or Ethereum.