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Swiss Crypto Valley fights crisis

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The Crypto Valley of Switzerland asks the Federal Government for 100 million Swiss francs ($ 102.7 million) in funds to curb the Startup crisis.

Heinz Taennler, the financial director of the Crypto Valley of Switzerland, Zug. He suggested that the fund could be made up of federal guarantees, private investments and contributions from local governments.

Consequently, the Swiss Blockchain Federation recently conducted a survey. The results allude that the coming months are crucial for financial health among startups of the crypto ecosystem and finally being able to stop the crisis.

A survey for Swiss Crypto Valley Startups

About 80% of 203 companies surveyed warned of the impending bankruptcy. Only half of the 50 largest companies in Crypto Valley expect to last a year in business.

During the months leading up to the Coronavirus crisis, the Crypto Valley of Switzerland had spread beyond the canton of Zug. But now, many of the startups are in danger if the market conditions do not change.

As a result, 79.8% of the inhabitants of the Crypto Valley of Switzerland stated that “in the next 6 months they could go bankrupt” Another source indicated that only half of the top companies in the region will survive a year. 88.2% will not be able to respond to the Coronavirus crisis without government help.

Additionally, 56.9% of respondents were forced to fire employees in the past month. But one of the most alarming figures showed that 90.7% of Startups are likely to have to take drastic action in the future.

Investors say

Several companies like Tend had already started closing stores without revealing much about their decision. The president of the Crypto Valley of the Switzerland Association (CVA), Daniel Haudenschild, indicated that:The center is a resilient community, whose members will simply launch a Startup

Also the co-founder of the marketing firm Relevance House, German Ramírez, expressed that it is normal for 80% of Startups to fail in any industry, outside the impact of COVID-19.

Ramírez predicts long-term success for Startups. Consequently Blockchain innovations are expected to disrupt traditional financial infrastructures after the pandemic.

The CVA president says that the sector is already hardened by adversity. Mainly including the freezing of relations with traditional banks, which cannot be expected to issue emergency loans to companies.

While Startups are generally threatened by the impact of COVID-19, the loss of venture capital from the Crypto Valley of Switzerland is an underlying condition.

What do you think about the crypto ecosystem’s financing needs right now? Your comment is very important to us.



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