How the corona crisis is affecting Crypto Valley

Crypto Valley and the entire Swiss Blockchain scene is facing an existential threat due to the restrictions caused by the Corona pandemic. The Swiss Blockchain Federation recently conducted a broad survey among companies in the Valley.

Startups from Crypto Valley are particularly hard hit

Due to the uncertainties of the Corona crisis, numerous industry players have already contacted the umbrella organisation and asked for urgent support. Crypto Valley, which today stretches far beyond the canton of Zug, had established itself in recent years as a global showcase cluster in the field of blockchain technology.

Survey of 203 companies

The Swiss Blockchain Federation has consulted the most important industry players on the current situation in a survey. 203 companies took part in the survey in the Swiss Blockchain Ecosystem on the corona crisis.

The key findings:

  • A large proportion (79.8%) of the companies have said that they will most likely go bankrupt in the next six months.
  • A similarly high percentage (88.2%) will not survive the corona crisis without government assistance.
  • More than half (56.9%) of those surveyed have already had to lay off employees.
  • Almost all (90.7%) will probably have to do so in the future.
  • More than two thirds (68.3%) of the start-ups that applied for a “COVID loan” did not receive it.

Quotes from entrepreneurs in Crypto Valley

“Loans are discussed on the basis of turnover and/or wage totals. Both factors are low for start-ups, meaning loans will be very low, if they are even granted.”

“In a normal world, the ones who didn’t make progress, and not the ones who are making progress right now, will become extinct. Hopefully politicians will check this out and not just help the garages and farmers.”

“As a start-up company we are unfortunately excluded from CODVID loans – so we will probably have to file for bankruptcy soon.”

Other industry leaders have highlighted the issue of lack of investment. They also hope for more help from politicians.  At the moment, there is a strong sense of fear for the future dominating the minds of many entrepreneurs. There is also mention of Crypto Valley mutating into “Death Valley” without financial support soon becoming available.

The hope is that politicians will take care of the most pressing questions from Crypto Valley.

Swiss Blockchain Federation

The Swiss Blockchain Federation is committed to maintaining and expanding the attractiveness and competitiveness of Switzerland as a blockchain location. The most important challenges in this regard are the creation of legal security, favourable framework conditions and a broad-based ecosystem.

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The CVJ editorial staff consists of a team of Blockchain experts and informs daily and independently about the most exciting news.